# Neobank

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A neobank is a type of direct bank that operates exclusively using online banking without traditional physical branch networks. They challenge traditional banks.

## Europe

The term neobank has been in use since at least 2016 to describe fintech-based financial providers that were challenging traditional banks. There were two main types of company that provided services digitally: companies that applied for their own banking license and companies in a relationship with a traditional bank to provide those financial services. The former were called challenger banks and the latter were called neobanks.
The term "challenger bank" is used in the UK to refer to a number of fintech banking startups that emerged in the wake of the 2007–2009 financial crisis. Their services may be accessed by clients through their respective computers or mobile devices.

## Oceania
### Australia

Neobanks are operational in Australia and include banks such as Up, Judo, Alex.

## Asia
### Bangladesh

The concept of neobanks was first noted in Bangladesh around 2020. These banks would be digital only with customer accounts not connected to any particular branch.

### India

In India, a neobank is a class of digital-only or online bank that operates without physical branch locations. They typically have lower operational costs, which can sometimes result in lower fees and more competitive interest rates for their customers. Neobanks often partner with well-established, traditional banks to provide services and adhere to regulations.
Neobanks in India typically offer a range of financial services, including savings accounts, current accounts, debit and credit cards, and other banking services. They focus on providing a seamless and user-friendly digital banking experience to a younger audience, with features like instant account setup, easy money transfers, and expense tracking. Some neobanks also target specific customer segments, such as millennials, and offer features like budgeting tools and investment options to that demographic.
Indian neobanks primarily operate in Indian rupees and may have limited cross-border services. International transactions are often handled in partnerships with traditional banks. Federal Bank has partnered with Jupiter and Fi in the neo-banking space.

### Iran

Neobanks in Iran are legally digital branches of banks. Central Bank passed a limiting law in 2022 which bans banks from starting mobile "neo" bank apps that have their own core. There are a number of active programs such as Omid Bank, Tobank, Wepod and Zpod Kidzy, Bank Mellat Plus. Iranians need Identity national smart cards and video confirmation to open an account.