Absolutely agree with you on most points - limited pain points to solve for Indian retail banking consumers - interest not as steep in India compared to Brazil (Nubank) or fees is not as exhorbitant as in UK/US, for any major disruption on pricing. Incumbents are moving fast to reimagine the experience they offer (and also want to see if the more established ones will even partner with such disrupters rather than upping their game). Then you also have other players like Gpay/PhonePe who are carving out smaller verticals from the Financial Services ecosystem as an offering. And then there is regulation, there is dependency which a Neobank currently can't circumvent. Will be really interesting to see how these Fintech veteran founders create a differentiated offering that can bring in sufficient sustainable revenue.
I am carrying a contrarian view on this - RBI should allow new entities of certain scale to get a banking license maybe at a short scale initially like how small finance banks are given the licences to operate with pure digital play first - with conditions such as insuring 90% of the deposits and not allowing to play much with it but isn't that already part of the game ...
US has more than 9000+ commercial banks where as India has around 60+ :)
Too much regulation and control of the state may not result into fast forward innovation in this space.
A lot of VC money has gone into creating nice UI by experienced founders. Hope more comes out of it else it's a race clearly being led by the govt. and incumbents.