Freecharge, a prominent payments and recharge platform, has unveiled its neo-banking platform, offering a range of financial services to its customers. Owned by Axis Bank, the company has disclosed that more than 18,000 customers have already enrolled in the new platform.

Exploring Neo-Banking

A neo-bank is a digital financial institution that operates without physical branches, providing an alternative to traditional banks. Although they lack a bank license, neo-banks collaborate with established banks to onboard customers. Freecharge has partnered with Axis Bank to deliver neo-banking services to its clientele.

Phased Rollout Strategy

Freecharge has been conducting trials of its neo-banking platform, commencing with the introduction of buy now, pay later (BNPL) services in the first quarter of the year. Subsequently, the company has initiated trials for lending services tailored for small businesses.

Customers can access fixed and recurring deposits through the Freecharge app. Moreover, the platform now facilitates mutual fund investments directly from the app interface. Future plans entail extending services to include personal loans for customers.

Expansion Plans

Siddharth Mehta, CEO of Freecharge, outlined the company’s strategic roadmap, which involves the gradual expansion of its digital financial services. Following the launch of BNPL and lending services, Freecharge intends to introduce a comprehensive consumer financial services platform, transitioning towards catering to merchants as well.

In the forthcoming months, Freecharge will forge partnerships with insurance providers, enabling users to apply for and renew insurance policies seamlessly through the platform. Additionally, the company aims to debut digital credit and debit cards for users in the early months of the following year.

As Freecharge ventures into the realm of neo-banking, it aims to provide its customers with a comprehensive suite of financial solutions, leveraging digital innovation to enhance accessibility and convenience.