Neo-Banking As A Tool Of Financial Inclusion

Abstract

Financial Inclusion ‘FI’ mainly indicates that both individuals and businesses have required access to several formal financial systems that are for accurately availing basic financial services at an affordable cost. The study has mentioned that Paytm Payments Bank has been considered the most identified neo-banking app in the year 2024 within India. The aim of the study is to analyse neo-banking as a significant tool of financial inclusion. This study employs a secondary thematic analysis approach, integrating both quantitative and qualitative data to assess the impact of neo-banking on financial inclusion. The study findings indicate that the dynamic of neo-banks contributes to the digital financial literacy through providing user-friendly platforms and integrating with the tools of financial inclusion. However, adoption barriers like regulatory complexities, cyber security concerns, and lack of trust among older populations persist. Factors including increasing penetration of smart phones, changing preferences of consumers and government support for digital payments are help in drive the growth of neo-banking.