Neobanking in India: Opportunities and Challenges from Customer Perspective

Banking and financial instruments are ever-evolving as per the need of the economy and industries; this is how innovative financial instruments take birth. From mere money lenders and the basic principle of lending, banks have transformed into a modern banking system in which core banking and digitalization plays a major role. Fintech and blockchain technology are the main elements of digitalized banking. After the impact of demonetization and the pandemic spread of the novel coronavirus there has occurred a tendency among people to incline towards digital payments and net banking. Digital payment apps, e-wallets, and online shopping are now going through a higher growth rate. Thus reliability on digital modes is also increasing. Neobanking is a concept completely powered by Fintech wherein there exists no bank in its physical form and complete operation is in its virtual form. This has enabled the Neobanking system to be the financial institution in its complete sustainable potential. The benefits are also distributed among the customers. This paper intends to study the scope of Neobanking in India and also the opportunities and challenges from the customer perspective. Content analysis and the thematic approach of all the customer responses through twitter are also analyzed to get estimation on the prospect of receiving customers and anticipation of their approach, whether positive or negative for the Neobanking system in India. The analysis was found to have a high positive response and approach from neobank users.