On the 20th of October 2022, twimbit, in partnership with F5 and Kyndryl organised the inaugural “Bank of Tomorrow Asia Pacific Summit”. We were thrilled to have Vaibhav Joshi of Easy Pay and Gaurav Goel of Yes Bank chat with Varnika Goel of twimbit to discuss their aspirations and vision for the future of banking.
Session Title: Impact of Neobanks on Banking Ecosystems
Speakers:
- Varnika Goel, Research Director and Co-Founder, twimbit
- Gaurav Goel, Group President & National Head, Yes Bank
- Vaibhav S Joshi, Co-Founder & CEO, Easy Pay
Neobanks have disrupted the banking industry, profoundly impacting how customer experience is delivered. Their remarkable presence in India, with their drastic rise to new heights, marks a new precipice for the accelerated growth of the neobank market. Together, our esteemed guests will delve deep, discovering the impact neobanks have made in the banking ecosystem and the future opportunities it presents.
Intuitive, Seamless, Hassle-free customer journeys
“Neobanks pave the way forward for agility and nimble-footedness.” – Vaibhav S Joshi, Co-Founder & CEO, Easy Pay
Today, leading neobanks in India have advanced dramatically, allowing their customers to digitally open a bank account in under two and a half minutes. Banking has become extremely convenient for the user, resulting in memorable customer experiences. Truly, convenience and accessibility towers above all in customer satisfaction.
“Neobanks have awakened the dinasaurs, encouraging them to adopt technology and new solutions to compete with the challenger banks,” reflects Gaurav Goel of Yes Bank. The efficiency with which the banks of tomorrow operate today is attributed to the most modern technologies. This has resulted in them achieving the following:
- Reduced client acquisition costs
- Reduced cost in the delivery of services
- Lowered distribution costs
Embracing and mastering emotion in customer experience
“Trust is an extremely important element in the financial services industry.” – Vaibhav S Joshi, Co-Founder & CEO, Easy Pay
Personalisation – the ability to personalise banking offerings based on targeted segments is essential for neobanks. This is made possible with neobanks’ flexible architecture that encourages financial inclusion.
Neobanks continue to inch further into the realm of limitless possibilities, diving deep into niche sectors, such as logistics, legal fraternities and the MSME (micro, small and medium enterprise) segment to develop intelligent banking solutions for them.
For instance, Easy Pay, a leading neobank, has developed Smart Credit AI to enhance the loan application process for MSMEs in the country. The solution is an AI-based credit scoring algorithm that enables banks to access alternative data points, such as utility payments or public records. This helps banks better assess customer profiles, securing loans for the underbanked population.
As a result, the MSME business owners have grown fond of these solutions, with neobanks receiving high regard and acclamations for their achievements. Today, around 70 million MSMEs occupy India, of which 95% have little to no credit history for traditional banks to assess their creditworthiness. Neobanks give business owners an amazing opportunity, that is to leverage banking services they otherwise could not access – instilling trust and forging a deep, long-lasting relationship with their customers.
Embedded and hyper-personalised solutions drive the future
Neobanks possess an ROI of 18 to 20 percent in the origination, distribution, and delivery of resources. Therefore, they must play to their strengths and orchestrate an all-in-one platform that embeds financial, lifestyle, travel, education, and healthcare solutions to be profitable and sustainable. These value-added services will help them expand their portfolio and acquire more customers, ultimately generating more income.
Moreover, with incumbents stepping up to the plate, the pressure is red hot for neobanks to constantly innovate to survive in the market. Neobanks must continuously leverage data to deliver hyper-personalised lifestyle-based solutions for the millennials and Gen-Z, the majority of their customer base.
“In the end, long-lasting quality relationships will keep your customers forever. To grow and differentiate for the customer is, in the simplest manner, the continuous pursuit for neobanks,” Gaurav Goel, Group President & National Head, Yes Bank