The decision to launch a FinTech application through neobank solutions requires an evaluation between their advantages and disadvantages. People who discover unique banking requirements for specific groups, such as freelancers or e-commerce marketplace owners, should launch their neobank from the ground up. Your client base will discover your services even though you operate without an actual physical location. The goal is to develop a first-rate application which satisfies customer requirements before implementing correct promotional methods.

Digital-only banks have gained popularity as an increasing number of people choose to use them. The USA currently has 61.86 million users of digital bank accounts, which experts predict will exceed 80.78 million by 2028. The process of using an open neobank begins with app download, followed by account creation and identity verification and account funding before accessing the services. Open Neobank requires a comprehensive guide to operate as an Indian banking platform that targets startup companies and independent contractors, and small business clients. Here’s your step-by-step walkthrough.

What is Open Neobank

The Asian neobanking sector welcomed its inaugural startup aimed at SMEs, startups, and freelancers through Open. The platform unites four essential business features, which include banking, payments, accounting and expense management.

Open Neobank has formed partnerships with banking institutions, including ICICI Bank, as well as Axis Bank and Yes Bank.

The platform provides features to create invoices while supporting tax preparation and payrolls and handling expenses.

Especially useful for founders, freelancers, and early-stage companies.

Step-by-step guide to get started

The process involved:

Open an account  

The verification process grants you access to multiple features, including a business current account with a virtual account number and debit card.

You will get a business current account through the partnership between Open and its banking partner.

• A  virtual account number & IFSC.
• A debit card (physical and/or virtual).
• Dashboard access via mobile and web apps.

Choose your business type  

• Individual (freelancer, consultant).
• Proprietorship.
• Private Limited / LLP.
• Partnership.

The KYC procedures for each company display slight variations from one another.

The next step requires the completion of digital KYC procedures.  

Upload the necessary documents:

• The required documentation includes a PAN Card for both business and personal use.
• You need to present your business evidence, which includes a GST certificate, MSME, and shop act license, among other documents.
• Bank statements or cancelled cheques.
• Digital verification through OTP and e-signature systems carries out most of the verification process.

Set up features

Your open account dashboard allows you to perform the following tasks:

Send GST-compliant invoices

Inside your open account, you can use UPI and card payments together with payment links to accept money.

Track expenses

The system automatically groups and matches bank statement data.

The payroll setup, along with employee reimbursement options, can be established on the platform. You can obtain credit lines together with credit cards through the application process if your eligibility meets the criteria (subject to terms).

Identity verification

Provide required documents: Neobanks need users to prove their identity through valid government-issued photo IDs, including passports or driver licenses or national ID cards.

Proof of Address: Additional documentation, such as utility bills or bank statements, can verify your address when required by the neobank.

Digital Verification: Users must submit either a recorded selfie or engage in video communication with the system for digital identity authentication.

Tax residency: Operating neobanks need to verify tax residency from their users in their respective countries. 

Fund your account

Transfer Funds: Account verification allows you to fund your neobank through bank account transfers from existing financial institutions.

Payment methods

The payment systems which neobanks provide their customers include bank transfers together with debit/credit cards as well as other different payment options. 

Is it safe

The funds stored in Open accounts reside in regulated banking institutions such as ICICI and Axis. The Reserve Bank of India provides deposit insurance protection for your funds that are located within those participating banks. PCI DSS compliance for card security.

Best use cases

Freelancers needing invoicing capabilities and payment tracking features should use this platform. Companies that require quick access to an immediate current account should consider this solution. The platform provides digital tools accessible to MSMEs that operate without accounting personnel. The requirement exists for teams which need both reimbursement capabilities and salary distribution features.

Start using the neobank services

The neobank becomes accessible for you to use its features after you fund your account, which will enable payments and financial management alongside investment possibilities.

Use the App to get acquainted with its interface alongside its features.

Users should enable notifications because they provide real-time information about their transactions together with account activities.

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