The emergence of neo banking and open banking has fundamentally + altered the world of financial services. Neo-Banks, which operate entirely online without traditional brick-and-mortar-branches, and Open-Banking, which uses APIs to allow third-party developers to create applications and services based on financial institutions, promise improved customer experiences, streamlined services, and greater financial inclusion. Theses arises challenges like the adoption of customers to digital services, satisfaction and cybersecurity issues arising using these services. This study primarily focusses on these above said challenges and also about the satisfaction levels about neo and open banking and also about the cybersecurity concerns. In order to study these challenges, the data acquired is primary data, through a questionnaire, and the study garned around 109 responses. The study analyzed demographic data using frequency distribution, regression, and chi-square tests, revealing that most respondents were aged 18–25, with 72.5% being female. It found no significant differences in user adoption and satisfaction levels between neo and open banking platforms, and users expressed no concerns about cybersecurity.