Consider the following statements regarding the Neobanks:

1)      They are digital banks with multiple branches.

2)      Jupiter is an example of Neo Bank in India.

3)      They are financial institutions that give customers a cheaper alternative to traditional banks.  

Which of the statements given above is/are correct?

Solution

A neobank is a kind of digital bank without any branches. Rather than being physically present at a specific location, neobanking is entirely online. Hence, statement 1 is not correct. Neobanks are financial institutions that give customers a cheaper alternative to traditional banks. Hence, statement 2 is correct. Jupiter is similar to Fi Money in terms of partnership with the Federal Bank. The process of opening a bank account with Jupiter is easy and fast. It is a neobank.