India neobank Fi winds down banking services on its platform

Fi, the Indian neobank that gained traction over the past four years, is officially winding down its banking operations. Launched in collaboration with Federal Bank in 2021, the platform aimed to provide digital savings accounts and money management tools tailored for younger consumers. Since its inception, Fi has successfully served over 3.5 million users and processed more than a billion transactions. Founded in 2019 by ex-Google Pay India executives Sujith Narayanan and Sumit Gwalani, Fi has attracted significant investment, raising approximately $169 million from notable backers, including Ribbit Capital and Sequoia Capital India. However, the company recently informed its customers via email that they must now access their savings accounts through Federal Bank’s mobile app, FedMobile, as banking services on the Fi platform will soon be discontinued. The email reassured users of the safety and accessibility of their funds, stating, "The banking services on the Fi app will soon be discontinued; however, your Savings Account with Federal Bank remains active and fully operational. Your funds remain completely safe and accessible at all times." In a similar communication, Federal Bank indicated that the end of its partnership with Fi was part of a broader business realignment, instructing clients to switch to its own digital channels. Fi once competed against other fintech platforms such as Jupiter, Open, and Slice. While the startup is stepping back from its primary banking business, co-founder Narayanan has expressed a commitment to pivoting towards developing advanced technology and artificial intelligence systems for startups and larger companies. Last month, he outlined this strategic shift in a LinkedIn post, emphasizing a focus on creating sustainable technology solutions. Currently, new users are unable to open savings accounts through the Fi app, which has removed the option altogether. As of now, Fi has not provided additional comments regarding its strategic change or future plans, and Federal Bank has also remained silent on the matter.