Unlike traditional banks, neobanking platforms do not have their own banking licenses in India yet. Instead, these new-age digital entities partner with traditional banks to offer full-scale banking services to small and medium enterprises (SMEs) and retail customers. The standard fare is already there, be it cash deposit, fund transfer, credit card or lending. But what matters most is the cloud-based digital-only format they have embraced, leading to quick and convenient branchless banking that has found many takers in the Covid-19 era. Of course, their offerings may not seem too different from what payments banks are doing sans the lending component. But neobank customers are more tech-savvy and do not require much hand-holding for basic banking operations.
Neobanks might have got a boost during the current pandemic that calls for restricted movements and digital payments. But the model is now being tailored to meet fast-evolving customer requirements, especially in the B2B…