Fi Shuts Down Banking Services, Shifts Focus
▼ Summary
– Fi, a neobank founded by former Google Pay executives, is discontinuing its banking services platform after launching in partnership with Federal Bank in 2021.
– The company is directing its over 3.5 million customers to access their Federal Bank savings accounts directly through the bank’s FedMobile app instead.
– Both Fi and Federal Bank communicated that this change is due to a partnership ending as part of a business realignment, but customer accounts and funds remain safe.
– Fi is shifting its strategic focus away from consumer banking to building deep technology and AI systems for startups and large enterprises.
– The startup, which has raised about $169 million, was competing with other neobanks like Jupiter and Open before this pivot.
The digital banking platform Fi is winding down its core banking services, directing existing customers to access their Federal Bank savings accounts directly through the bank’s own mobile app. This strategic shift marks a significant pivot for the neobank, which launched its app-based service in 2021 targeting younger users with digital accounts and money management tools. The company has confirmed that all customer funds remain secure and fully accessible, with only the method of account access changing as the partnership concludes.
Founded in 2019 by former Google Pay executives Sujith Narayanan and Sumit Gwalani, the Bengaluru-based startup grew to serve over 3.5 million customers and facilitated more than a billion transactions. It attracted substantial backing from prominent investors, including Ribbit Capital, B Capital, and Peak XV Partners (formerly Sequoia Capital India), raising approximately $169 million across several funding rounds. The platform was a notable competitor in India’s crowded neobanking space alongside players like Jupiter and Open.
Customers recently received official communications detailing the change. An email from Fi stated that while banking services on its app will soon end, the underlying savings accounts with Federal Bank remain active and operational. In a separate notice, Federal Bank described the move as part of a “business re-alignment,” assuring users that their account details are unchanged and they should now use the bank’s FedMobile app for all transactions. New users can no longer open savings accounts through the Fi application, which now displays a message that the option is unavailable.
This development does not signal a complete shutdown of Fi. Instead, the company is executing a major strategic realignment. Last month, co-founder Sujith Narayanan outlined a new direction in a LinkedIn post, indicating the firm will sunset some products to focus its efforts elsewhere. The startup is now pivoting its core business toward developing deep technology and artificial intelligence systems for both startups and large enterprises. Narayanan explained that internal evaluations consistently pointed toward this area as where the team could build lasting and impactful work.
The move illustrates the dynamic and often challenging nature of the fintech sector, where even well-funded ventures must adapt their models. While Fi steps back from direct consumer-facing banking, its future now lies in providing the technological infrastructure that powers other businesses. Neither Fi nor Federal Bank provided additional commentary on the strategic shift or detailed future plans when contacted. For existing customers, the immediate path forward is clear: transition to using Federal Bank’s own digital channels to manage their finances seamlessly.
(Source: TechCrunch)