Bengaluru-based neobanking platform Freo on Tuesday launched its digital savings account ‘Freo Save’ in partnership with Equitas Small Finance Bank.
Freo said, with this launch, it has become the first consumer neobank in the country to provide full-stack neo-banking products, including smart savings account, credit and payments products, cards and wealth-growth products.
The neobank is planning to open one million new accounts in the next ten months.
Freo said, almost 60 per cent of Indians still use public sector banks as per the RBI. It also added that in a survey conducted in 1,000 cities where Freo is present, respondents said they wanted digital savings account offering a wide variety of products and features, including easier access to credit, higher interest, and better ways to grow their money all accessible digitally at the touch of a button.
Freo said its digital savings account has been integrated with Equitas’ infrastructure on the Freo Save App and has seamless UPI integration, making it a 100 per cent digital experience.
Anuj Kacker, Co-Founder, Freo said, “The launch of Freo Save in partnership with Equitas Small Finance Bank is an integral step in our vision towards providing end-to-end financial products to the country’s millennials, digitally and on the app. With the launch of Freo Save, we have now become a full-stack neobank that will allow consumers to save, spend, and borrow, all at the tap of a button.”
Started as MoneyTap in 2016, Freo is India’s first credit-led neobank. Currently, Freo offers a wide range of financial products, including credit line, credit cards, EMI cards, deposits & savings, buy now, pay later (BNPL) products in partnership with banks and financial institutions.
Freo Save will offer quick access to credit & shopping and through its partnership with Equitas Small Finance Bank. It will provide up to 7 per cent interest on customer savings for balances above ₹5 lakh up to ₹2 crore. Freo Save will be available in multiple Indian languages, including English, Hindi, and Tamil.
Murali Vaidyanathan, Senior President & Country Head – Branch Banking - Liabilities, Products & Wealth, Equitas Small Finance Bank, said, “Freo Save brings together our expertise in banking services and Freo’s strength in lending to offer consumers a world-class consumer-first digital banking experience. I am confident that Freo Save will find wide acceptance across our existing and potential customer base and provide a new way of banking to individuals.”