INSIGHTS #77: Future of Banking | Reflections from Niyo’s Vinay Bagri

Banking opportunity in India is tremendous, with overall banking assets expected to reach $3T by 2025, with deeply under-penetrated private credit markets which account for ~50% of GDP (vs. 150%+ for developed economies).

Despite this large opportunity, customer experience and engagement in traditional consumer banking in India is broken and has been so for over a decade.

With the increasing digital penetration in the country, customers armed with their smartphones are looking for an easy, seamless, quick and personalised experience and their expectations are ever-evolving.

Neo-banks attempt to fix the broken customer journeys and provide a superior banking experience, serving as a layer over traditional banks. This means that customers no longer need to spend hours at their physical bank branch queues, mired in paperwork for everyday banking needs. While doing so, a neo-bank improves access to a whole suite of financial products across wealth management, lending, and insurance through a single platform.

As Accel, we’ve always believed that technology can revolutionise banking and attempted to enable that ecosystem, first through our investment in Monzo in 2018, then through our investment in Zolve in 2021, and recently through a growth investment in Niyo - Niyo is a leader in the consumer neo-banking segment in India with a base of 5 million users.

To understand this new era of banking which is fast unfolding, we spoke to Vinay Bagri, Co-founder and CEO of Niyo, who is a long-standing veteran in the banking industry in India.

In this conversation, Vinay talks about how Niyo came into being, shares some of his reflections on the ongoing changes in the banking ecosystem, draws parallels from other fintech segments and discusses the need for regulatory support.

Key segments

• The large market opportunity for a neo-bank in India - 18:05 - 19:48
• How neo-banks provide a completely new banking experience - 20:22 - 22:41
• The success of neo-banks globally - 24:00 - 25:20
• Customer segmentation in neobanking - 30:25 - 32:12
• State of neo-banking regulations in India - 36:28 - 39:10

We thank Vinay for coming on and sharing these insights with us and we wish him and Niyo team all the best for this amazing journey of revolutionizing consumer banking for India.

Check out other episodes from the Insights Podcast series at https://www.seedtoscale.com

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