Freecharge announces neo-banking platform, to offer fixed deposits, digital credit card and more

• Freecharge has announced the rollout of its neo-banking platform.
• The company will offer services such as fixed deposits, digital credit cards, personal loans and more.
• It has partnered with Axis Bank to offer banking services to its customers.

Payments and recharge platform Freecharge have announced the rollout of its neo-banking platform. The Axis Bank-owned company has revealed that over 18,000 customers have already signed up for the new platform.

Some of the services that its customers will be able to avail include — fixed deposits, recurring deposits, buy now, pay later (BNPL) services, digital debit and credit cards, personal loans and more.

What is a neo-bank?

A neo-bank is a financial institution that offers an alternative to traditional banks. They are digital banks that do not have any physical branches. While they do not have a bank license, they partner with existing banks to onboard customers.

Freecharge has partnered with Axis Bank, its parent company to offer neo-banking services to its customers.

Phased rollout

Freecharge has been testing its neo-banking platform for some time now. It started offering buy now, pay later (BNPL) services to its customers in the first quarter of the year and is now testing lending services for small businesses.

Customers can also enrol for fixed and recurring deposits on the platform using the Freecharge app. The company has also started offering mutual fund services, allowing users to invest in mutual funds right from the app.

In the future, the company also intends to offer personal loans to its customers.

“We launched BNPL, the first of the (digital) products, in the first quarter. The second one was small-ticket lending for small businesses," Freecharge chief executive officer Siddharth Mehta said in an interview.

“The extension of this is that we will launch the consumer financial services platform or the neo-bank. Then, eventually, we will move to the merchant," Mehta added.

Freecharge will also partner with insurance providers in the coming months to allow its users to apply and renew their insurance policies. Early next year, the company aims to offer digital credit and debit cards to its users.

SEE ALSO:

Now you can invest in global blockchain companies through this mutual fund ⁠— here's how to do it

Cryptocurrencies tumble as China continues its crackdown against mining

JPMorgan takes Tesla to court over Elon Musk’s 2018 tweets ⁠— demands $162 million