Can India's neobanks challenge traditional lenders and transform an archaic industry?

“Neobanking in India is fast gaining momentum,” says Shishir Mankad, managing partner and head of financial services at consultant Praxis Global Alliance. “While still at a nascent stage, India has already seen a rapid emergence of neobank players in the last two years.”

Currently, there are about 30 companies that are active in India's neobanking sector, according to Praxis.

Traditional banks are trapped in archaic — and more costly — ways of working, industry insiders say. While brick-and-mortar lenders have mobile apps and online banking, they are not purely digital and customers still need to visit branches for certain processes, they add.

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