India’s neobank Fi has announced to stop banking services on its platform. This comes more than four years after it launched banking services in partnership with Federal Bank. Fi has stopped onboarding new customers and Federal Bank has also announced the termination of partnership.
Fi was founded in 2019 by former Google Pay India executives Sujith Narayanan and Sumit Gwalani. The company launched its app-based banking service in 2021 in partnership with Federal Bank. The service offered digital savings accounts and money management tools mainly for young users.
Fi app was released on Google Play Store on 30 November 2021 and has more than 1 crore downloads. The app was last updated on 18 February 2026.
A Neobank is a digital-only bank that operates completely online without physical branches. Customers can open accounts, transfer money, and manage their finances using mobile apps or websites.
Digital Banking
Neobanks provide banking services through mobile apps and websites. Customers do not need to visit a bank branch.
Fast Account Opening
Accounts can usually be opened online within minutes using digital KYC and identity verification.
Lower Costs
Since neobanks do not maintain physical branches, their operating costs are lower and they often provide cheaper services.
Partner Banks
Many neobanks work with licensed traditional banks to provide regulated banking services such as deposits and payments.
Neobanks are becoming popular because they offer convenient digital banking services, especially for young users and businesses that prefer mobile-based financial management.
The Bengaluru-based startup says it has served more than 3.5 million customers and processed over one billion transactions on its platform. The company has investors such as Ribbit Capital, B Capital, Alpha Wave Global, and Sequoia Capital India (now known as Peak XV Partners).
Fi was competing with other neobanking platforms such as Jupiter, Open, and Slice. According to Tracxn, the startup has raised around $169 million through five funding rounds.
What will happen to users now?
Recently, customers who opened accounts through the Fi app received an email. The email said that banking services on the Fi platform will soon be discontinued. However, the fintech company clarified that customers’ savings accounts with Federal Bank will remain active. Customers will now have to access their accounts through the bank’s mobile banking app called FedMobile.
Fi users can access banking easily via FedMobile app. Just download app and login using details. Fi was just providing its interface but the actual banking was taking place via Federal Bank. So, all the money of Fi users is parked safely in Federal Bank. Fi users can use Federal Bank mobile app, internet banking or visit branch for any service.
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