Indian Neobank Fi Shuts Down Core Banking Services

Bengaluru-based neobank Fi is discontinuing its app-based banking services this week, ending a four-year partnership with Federal Bank as it pivots its business model and directs customers to access their savings accounts directly through the partner bank’s platform.

How Fi Customers Are Affected

Users who registered for savings accounts via the fintech app recently received notifications explaining that the platform’s banking interface will soon go dark. However, Fi clarified that customer funds remain entirely secure. Depositors must now manage their active Federal Bank savings accounts through the bank’s proprietary mobile application, FedMobile.

“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,” the fintech communicated in an email to its user base.

Federal Bank echoed this transition in a separate correspondence to clients, attributing the termination of the partnership to a strategic “business re-alignment” and instructing users to utilize its own digital platforms going forward.

“Our partnership with Fi is ending. Your account remains the same and only the channel through which it is accessed is changing,” Federal Bank stated.

A Look Back at Fi’s Rapid Growth

Established in 2019 by former Google Pay India executives Sujith Narayanan and Sumit Gwalani, Fi launched its digital banking services in 2021. Designed to offer intuitive digital savings accounts and smart money management tools, the startup primarily targeted tech-savvy younger demographics. Over its operational lifespan, the Bengaluru-headquartered firm successfully onboarded over 3.5 million customers and processed more than one billion transactions.

To fuel its growth, the neobank secured approximately $169 million across five funding rounds, per market intelligence platform Tracxn. Its prominent backer list features heavyweights such as Ribbit Capital, B Capital, Alpha Wave Global, and Peak XV Partners (formerly Sequoia Capital India, which rebranded in 2023). In the highly competitive Indian fintech space, Fi actively competed against rival platforms like Jupiter, Open, and Slice.

The Pivot: Shifting Focus to Deep Tech and AI

While Fi is withdrawing from consumer-facing banking services, the company is not shutting down entirely. Co-founder Sujith Narayanan recently shared on LinkedIn that the company is restructuring its operational strategy to focus on creating sophisticated artificial intelligence and deep-tech infrastructure tailored for enterprises and startups.

“We asked where we do our strongest work, and where we can build something that truly lasts. The answers kept pointing in one direction – deep technology, AI, and building complex systems for startups & large enterprises alike,” Narayanan explained, noting that certain legacy products would be retired during this transition.

The platform has already halted onboarding, and new users can no longer open savings accounts through the Fi application. While the app now displays a message confirming that account creation is unavailable, neither Fi nor Federal Bank have responded to inquiries regarding the timeline of the strategic transition.