India’s neobank Fi shuts down banking services on its platform

India’s neobank Fi is ending banking services on its platform more than four years after first launching them in partnership with Federal Bank, and is now directing customers to use the bank’s own mobile app to access their savings accounts as the Fi interface is phased out.

Fi was founded in 2019 by former Google Pay India executives Sujith Narayanan and Sumit Gwalani. In 2021, the startup introduced its app-based banking service through a partnership with Federal Bank, offering digital savings accounts and money management features aimed at younger consumers. The Bengaluru-based company says it has served more than 3.5 million customers and processed over a billion transactions through its platform. Its investors include Ribbit Capital, B Capital, Alpha Wave Global, and Sequoia Capital India, which became Peak XV Partners in 2023.

This week, customers who had opened accounts through the Fi app received an email informing them that banking services on the platform would soon be discontinued. The company said customers’ savings accounts with Federal Bank would remain active and that they would now need to use the bank’s mobile banking app, FedMobile, to access them.

“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 company said in the email.

In a separate message, Federal Bank also informed customers that its partnership with Fi was ending as part of a “business realignment,” and advised them to begin using the bank’s own digital platforms to access their accounts.

“Our partnership with Fi is ending. Your account remains the same, and only the channel through which it is accessed is changing,” the bank said in the email.

Fi had been competing with other fintech players, including Jupiter, Open, and Slice. According to Tracxn, the startup has raised around $169 million across five funding rounds.

Although the company is stepping away from its core business, it has indicated that this does not mean a complete shutdown. Last month, Fi co-founder Narayanan said in a LinkedIn post that the startup was shifting its strategy toward building “deep technology” and artificial intelligence systems for startups and large enterprises, and that some of its products would be sunset as part of that change.

“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 wrote.

It was confirmed that new users can no longer open savings accounts through the Fi app, which now displays a message stating that the option is unavailable. Fi did not respond to requests for comment regarding its strategic change and plans. Federal Bank also did not respond to requests for comment.