Rising challenges for Indian neo-banks

Branchless banks are taking over the world and are expected to raise about $400 billion by 2026. Known as ‘neo-banks’ or ‘challenger banks’, they are completely digital with no physical presence.

They offer legions of financial services similar to a physical bank like opening bank accounts, transferring money and managing cash flow among others. They leverage tech via cloud computing, artificial intelligence, and machine learning and employ customer’s data to build diverse products and customised services. But digital banks have their own set of challenges.