FREO, a credit-led Neobank designed to serve the banking needs of millennials in India and Southeast Asia, has partnered with banks to bring new solutions to its customers. Through this credit-led Neobank, consumers will have access to financial products such as a credit line, credit cards, EMI cards, deposits and savings, buy-now-pay-later, and other financial utilities, to help build their credit profiles, borrow flexibly, save easily, and spend smartly.
FREO’s parent company started its operations in India with the launch of MoneyTap in late 2016. The company says its goal is to make credit flexible, convenient, and affordable, all through an intuitive, category-creating product.
The neobanking company claims to provide value to customers as a single point of access to a variety of financial products throughout their lives. In early 2021, FREO entered the BNPL space by launching an innovative product that enables QR code-based retail store purchases and online transactions. With this neo banking platform FREO, one can easily build their financial health, get credit, save, and spend in smarter ways.
Kunal Varma, Co-Founder, FREO says, “In India and SEA, there are over a billion digital natives and the way some of them have accessed financial services in the past will not be the same way in which products of the future will be built.”
Experts say, the COVID-19 pandemic has upturned many aspects of the world in multiple ways and banking has been no different. With a growing demand for convenient and intuitive digital solutions and offline banking becoming crowded and cumbersome, Neobanks have emerged and grown exponentially across the globe. The advantage of Neobanks is in their offering of financial solutions in a completely digital setting using mobile applications, ensuring a smooth and seamless banking experience for users. Neobanks can offer a wide pool of financial products that are easier, quicker, and more compelling, by leveraging state-of-the-art technologies.
Renaud Laplanche, a Serial Entrepreneur and CEO of Silicon Valley Unicorns, Advisor to FREO, says, “Globally, there are three types of Neobanks: Payments-led, Experience-led, and Credit-led. The first category makes payments faster, the second make banking simpler and these two categories already exist in the Indian startup ecosystem. The time is right and the Indian market is ready for the introduction of credit-led Neobanking to make credit more accessible as proven in markets like the USA, Europe, and Brazil.”
Research shows that emerging markets like India and South-East Asia are brimming with potential due to billions of underbanked young smartphone users who are looking for a banking partner that understands their needs and provides them with relevant financial products. These neo banking platforms are offering to tap that and bringing about financial inclusion and accessibility.