First, what are neo banks? They are financial institutions that offer banking and other financial solutions and are only based online, making them a cheaper alternative to traditional banks. Amongst so many is Niyo bank, a significant player in India's Fintech. It has raised $100 million in new financing rounds as it looks to add credits and insurance to its services.
Traditional banking habits remain a severe challenge to the Fintech industry as the people trust what is familiar over what is new. In overcoming this challenge, Niyo bank will offer about $900 in loans, open to its customer base of about 4 million. It is noteworthy that over 60% of India's population lives on less than $2 per day. Niyo hopes to improve the living standards of Indians with this new service, hence promoting financial inclusion and digital literacy amongst Indians.
With over 70% of rural India unbanked, Niyo will seek to reach the untouched and touched population by offering relief from the harsh economic realities of the country and expanding its strength and dominance in India's FinTech ecosystem against players like Jupiter and Fi money.
India in focus:
Population: 1.38 billion in 2020 as compared to 1.36 billion in 2019
GDP: $2.623 trillion compared to $2.871 trillion in 2019
GDP per capita: $1,900 in 2020 compared to $2,100 in 2019