Since it’s the era of technological improvements, all the sectors in the economy is focused on digitization including the banking sector. Thus, the idea of Neo banking is getting popular in the world.Neo banking is a notion in which there is no need for a physical bank because all services will be provided fully online. This study presents the idea of neo banking, as well as its pros and cons. Neo banks offer a broader range of services than traditional banks. They offer comparable products and services through various business methods, with an emphasis on the consumer. The business model and structure of Neo Banks has also been examined. However, the Reserve Bank of India hasn’t started distribution of banking license to Neo Banks as it is not in favour of 100% digitization of banking sectors. Thus, in India Neo banks partner with the various physical banks to provide their services. Furtherneo banks is seeking to bridge the gap between customers and traditional banks, as traditional bank fails to satisfy the need of their customers. Following that, this study analyzes the perceptions of consumer regarding acceptance of neo banking in India.

Keywords : Neo Banks, Fintech, Artificial Intelligence (AI), APIs, technology, Digital banking.