The world where we all live is a fanatic of technology, and most importantly, people are always looking for comfort and trust which is covered with mutual pairing, especially in the realm of Neobanking App development. Do you also want to know about what is a neo bank, what is neo banking and how do neobanks make money then keep reading this article.

While looking a while back, in traditional banking, people lined up in queues for a long time and waited just to do their banking. With the awareness and the presence of technology, they are now in a position to save their time and handle other work as well.

However, in recent years, virtual or digital banks have acquired a larger part of the segment which makes it a more reliable and possible solution for the people. At the point where the older banks failed, the neo banks came up with the mobile banking solution, becoming much easier for the users at the real end.

With the succinct transformation in the way of banking, there are more users with quick banking solutions. So, it’s time for us to understand more about this Neobanking app development solution. Begin with the market insights and analysis.

Go over the Market Analysis and Stats of neo banks

Have you ever thought about the success behind the groundwork of neo-banking in the real world? How does it mark its solace in a shorter time?

The answer comes with its demand and filling model that caters to the needs of the users. It has many cost-effective solutions at a low budget. With the combination of advanced services and low complex solutions for IT, businesses, and people; urge it has the potential to be one of the best solutions in 2024.

Coming to its market growth facts and figures;

In the global market, the size of the neo-banking solution was valued at $47.4 B in 2021 and will continue to grow at the rate of 53.4% in the period of 2023 to 2030.

The best thing about neo banks is that they would not require any physical branch. They can be virtually handled.

The alarming rate of technological advancement and the internet penetration deeply back to back evokes many financial services and digital wallet app development service providers to offer feasible solutions for money transactions.

Here comes the part where neo-banks are gaining popularity. Many venture capitalists and investors are popping their hands into these highly generous market opportunities in these Neobanking app development solutions. But first, Know about what is a neo bank and what is neo banking?

In India, the market is viewed with belief for the services and fascinates in sync. According to the Fintech India MEDICI report, the Indian startups had raised more than $200M in 2020 by investing in this solution for mobile banking.

Also, Read – Fintech App Development Services

Next to the fact is the collaboration of neo banks and fintech solutions in the industry to sustain the dynamic changes. Some of the key players are Chime Financial Inc., Digibank, Atom Bank plc, Dave Inc., etc.

neobank app development

What is defined as Neobanking?

Let’s begin with a quick introduction.

Neobanks are an advanced way of banking from a digital platform without any physical existence. However, they are not physically available; there is a major concern about the trust issue.

Many people are taking their chances to come into the virtual industry. Handling everything online like mortgages, rent payments, salaries to the employees, or any payments credited to the people makes it more likely for people to believe in such kinds of solutions.

How is it unique from traditional banking systems?

The most important question before comparison between neo banking the traditional banks is how reliable these new end banks are for the people and whether they be the next future of banking.

As we know, neo-banks do not have any physical state or infrastructure; they are run on a virtual platform. So there is no physical existence, and it is a big question.

Many factors have increased the infinite solutions for developing a neo-mobile banking app across the global market in recent years.

Some of the top growth rate drivers are:

  • Integration of AI and blockchain with banking forms
  • Cost-effective solutions increase the adoption of these banking systems
  • It offers banking solutions to institutions with the rapid increase in digitization
  • Operate on different services; offer several unique services for money spending; build trustworthiness for the customers; and provide support.
  • Revenue is generated by charging a small part of the commission to the customers and channeling it to the merchants.
  • Easy accessibility to different accounts single-handedly

Read Also: Blockchain App Development

Challenges faced while developing the syncing neo-banking solution

Challenges in neobanking app development are most important for you when building a functional app solution. Being the trustworthy partner for the banks and their customers, it is important for you to lamen your solution with plenty of solutions like security, flexibility, easy integration with authenticated partners, and much more.

Flexibility and feasibility with Neobank App Development

Have you ever thought about why people come to your platform? Are you capable of bringing them meaningful solutions for banking? Yes, creating and making it seamless for customers is equally important for industries. You can’t come up with an anonymous and unnecessary solution or product on the market without its operability.

For the neo-banks, it becomes vital to have a transparent platform that can route on-demand solutions for people who are using it.

Start with curated and well-designed portfolios for your clients and their customers. Having a significant portfolio makes things easy for customers. Try and test before lamen some of the top additions to your profiles. Here in our organization, we take care of every hinge and drive things accordingly.

Before the implementation, you can invest your time in researching the different scopes and areas where people demand fast and forward banking.

Read Also: How to Create a Mobile Banking App Successfully

A secure and safe solution for Neobanking App Development

When it comes to security, building a fully fleshed solution makes everything right to the mark. You need to first build authentication resources like KYC (know your customer). KYC is the first detail of the customers that would guarantee security. It can be a valuable asset for the business.

Neo-banking Mobile Solutions

How to make everything workable for Neo-banking Mobile Solutions?

If you want to build a fully functional neo-banking platform the first thing you have to keep in your mind is the banking license. Or if there is a far-reaching scenario for you in that case you need to merge with the payment platform which is already PCI DSS compliant. This will save you time and make you reach faster.

Firstly you need to do the market research and then design to build a neo-bank application wireframe.

Coming to the point of creating a seismic digital banking app solution like neo banking.

Discovery of product and depth analysis in Neobank App Development

This is the first step in the neobank app development process of your application. In this process, you need to go for an in-depth analysis of the banking solutions. Figure out the points where your competitive environment is, where they are lagging, and try to bridge the gap.

Specific requirements in Neobank App Development

In this stage, you need to curate all of the definite requirements for banking. Add small banks to your organization for faster outreach and combat your solutions. The business analyst keeps gathering crucial information related to the baking solution in the best-optimized way which could be a win-win situation for the user and the banking merchants.

The scope of the business analyst varies as per how to expand the limit of your banking solution. An experienced business analyst understands the larger level of the project scope with the detailed requirements.

UI/UX design

Designing is the real trait in the game of banking solutions. The analyst’s role is not just to define the criticalities of the services and products but also to intrinsically monitor and communicate with the designer.

Hire some decently experienced designers for your organization who will keep an eye on every bold decision.

Get integration of the visual designs, combat with the elements, and bold typography; succinctly makes everything representative of the portfolio.

Development

The development process is the final crucial step for customized and functional things. The development involves the summation of the frontend and backend platforms. For the front-end side of development usually, the interface of the web page is aligned with HTML, CSS, and frameworks. This helps build the functionality of every component.

While the experienced developer supports the backend for the organization. His work experience was reflected in the overall production of the application. While the back-end development goal is to cross-check whether everything is functional or not. He cares about the database and fills out every immediate solution for quick banking.

Integrating with automatic testing

This is the crucial stage where the testing engineer takes care of every functionality and tests it for full optimization. The role of a QA engineer is to automate every code structure minutely.

If he figures out any bugs or issues in the code functionality and performance of the application, he assures the developer or the designer. Banking solutions must be flawless; at any point in time, if the user freezes inside the code or has any hassle; the possibility is he will leave the platform.

Neo banks are now in the trend, their solutions are without any halt for the users. The users get quick solutions for account management, payments, monitoring transactions, and every pinpoint.

Final deployment

If we take out the best examples for banking then fintech is the obvious platform in the running. Kema is the best example of this type of banking. You have the most reliable platform to get maximum benefit for your customers. To suspect that each client requirement is specific you have to come up with a mutual adjustment with the solution to create an app solution like fintech.

Recommended Read: Fintech App Development Companies

After the post-launching of your banking solution, you need to manage your customers’ needs at every point in time. And why not? This is the advantage of having a feasible platform. With the digitization of the technologies, the smaller and medium enterprises should convey with their solutions what they are and how they must be beneficial for users.

How to make something unique for customers with the smart banking solution neo banking.

Start with the features and technology implementation. Let’s proceed.

Features required for the creation of Neobanks mobile app development

Prime features to create neo-banking from scratch would differ from business to business. But some of the essential features which we here piled for you are;

Features required for the creation of Neobank mobile app development

Profile creation and sign-up

This is probably the most confidential and initial step for the banking business solution for you. Under this, you need to add some layers of premises and security for the user registration.

The security layer must be fully accessible and support easy banking for the new time as well as potential users. Once the user comes to the registration process, convey to them to add secured and complex passwords, add security questions and email in case of any mishap, and aim to make them agree to confidentiality before proceeding further.

Onboarding

For the quick customer onboarding process, you should take care of a few of the important steps. Get your customers to feel much more secure and relaxed while using your platform. You can start the onboarding process for them like that;

1. Add some user interface-based suggestions to the new users. This information can be a savior to the user in case of an urgent time.

2. Avoid using large framed questions, add them with the skip option.

3. Highlight the most important things for the users to understand and keep in mind.

Map branches and ATMs

For the user, it is crucial to find the nearest banking solution for their necessities. While developing the entire application from scratch you must add filters and every possible ATM location. That would be helpful for the users. Adding some new technologies and trends idealizes your platform in the competitive market and gives more trust to the users.

Transaction management 

This page allows users to view multiple things side by side. Users get track of their payments. Add like recipient name, transaction amount and currency, date and time of the transaction, their current location, recurring payment spending brief; everything they get the view for instantly.

Recommended Read: P2P Payment App Development

Expense and payments 

Try to add more options for the customers for quick paying, must include card details from the top merchants like Paytm, PayPal, debit and credit cards, net banking, or banking with UPI.

In addition to that, attach the transaction history to the dashboard for users to quickly view every payment in their profile with options like loans, deposits, taxes and fines, donations, and many other options.

Recommended Read: How to Create a Loan App

Personal finance planning

It is an important parameter for your business to plan if you are in the queue to initiate your neo bank app development solution. Traction of loans or tools and software for budgeting and other tax planning; everything comes under the personal finance section.

Read Also: Personal Finance Management App Development

Online banking feature

This is the prime feature of digital banking. It gains trust amongst the users. The online banking feature consists of many different features itself. It gives convenience to users to use banking anywhere, without any barrier.

Digital wallet integration

With digital wallets, you no longer need to carry your cash in your hands. The great thing is they are trusted and secured by the bank’s authority.

Digital wallet integration

Loyalty programs enrollment

Including this feature in the app, production helps the business to gain the trust and satisfaction of the end-users. You can offer rewards, discounts, and other referral programs to run and attract loyal customers.

Faster mobile banking

Mobile banking is the best way for companies to gain customer retention and perform every transaction without any delay. This way of banking is accessible 24*7 without any halt for the people.

Cashback and discounts

This is an exciting feature that helps to expand the profits of the business as well as be worthy for your users. Neobanks Development services offer different rebates and concessions to occupy big buying gains.

Read Also: How to Create a Mobile Banking App Successfully

Automated billing payments 

Paying options are the need for every user to do banking. This fast automated banking option is likely to offer banking options to the users, at their convenience. They can either equate the amounts into parts for the easy transaction of money. There are different options for the customers for banking like; via cell phone, gas, electricity, or many other options.

Confidential messages alert 

These are the messages that allow the users to get notified of every important update the quickest. This is an important feature for the users to get notified being the hassle to look onto their screens.

Technologies implementation for the Neobanks Mobile App Development Solutions

In the Smart NEO banking solution, it is crucial to pair it with technology. Of course, performance and security are the real traits of the development of neo-banking.

Some of the top mobile app platforms for neo-banking are;

1. Customer-centric neo banks

  • Do not require any authority from banks.
  • Collaborate with established banks.
  • Integrate your banking solution with a third party.
  • Offer solutions for multiple customers like B2B and B2C.

2. Platform-based neo banks

  • The customized platform supports your clients and customers.
  • This kind of platform has a license.
  • They have their own CBS system
  • Deliver the best solution for better customer retention.

Some of the technical stack implementations for banking are;

  • Cross-platform languages: React, Xamarin, Flutter
  • Database used: MongoDB, MySQL, PostgreSQL
  • Push notifications: amazon sns
  • Back end: node.js
  • Payment gateways: Stripe, Braintree 
  • Different frameworks: react.js
  • Front end: HTML, CSS, js
  • Core banking system: advapay
Digital wallet integration

How do Neobanks make money?

There are some crucial ways for banking in neo-technology; these can be helpful for entrepreneurs to gain some amount of money.

Top three models for businesses to gain money. They are;

Net interest income model: 

Neobanking has scalable policies compared to other banking solutions like the traditional ones. However, the salary has deductions as compared to the other banks. The net interest is less in neo-banking but it also increases the risk of banking with the customers in some or another way.

Commission-based model:

Gathering a large bulk of niche people is what every business wants to regenerate its revenues. To have critical banking your business needs to attract people and gain their trust.

Premium account model:

You can locate people with your business brand values. Offer them grand services that are mutually beneficial for users, banks, and your business as well.

Some of the premium top services are better-saving rates, lounge passes, overseas health insurance, travel insurance, and many other options.

Recommended Read: White Label NFT Marketplace Development

What is the cost of defining the Neobank Application?

The cost to create an app for neobank depends on many factors. The cost to hire the developers, technologies aligned with the product, third-party integrations, addition of successful payment gateways, etc. is the rich factors for you.

Let’s look over some things to consider before estimating the final price for the development of the application.

In conclusion, the final cost for the development of the neobank application would be a little high around $55k to $60k.

Read Also: How Much Does it Cost to Develop Payment Switch Application?

Chime

Chime is the banking financial solution; it’s not a physical bank, so it comes into the category of neo-banking.

It allows customers to allow free banking solutions to the customers without the hassle of having a minimum amount. It offers many banking solutions to the customers and with great confinement of revenue. Till the time they generated revenue of $5.8B, greatly satisfied their customers with the virtual services.

Stripe

It is another giant in the success story of banking virtually. It is a SAAS-based company developing API solutions for small and big institutes and businesses. Stripe has reached a hit marker of 900k requests within a month and that is to define its success.

Final Words!

Neobanks are financial institutions when combined with fintech to mutually cater to ready-made solutions for real clients and customers. With the mixed strength of the financial solutions to the new trending bank app solution, it becomes a feasible trait for the companies to adopt.

You can adhere to your banking idea when collaborating with the outsourcing Neobanks mobile app development company. Get started today on the journey of your banking app solution.

FAQs

How do I create a neobank app?

Creating a neobank app needs technical expertise and experience. Hire a BaaS service provider to create your neobank app. The steps to create a neobank app are as follows
1. Ideation and Research 
2. Finalize List of Features and App Architecture
3. UI/UX Design
4. Development
5. Testing 
6. Deployment

Along with this, one needs to take care of compliances and other legal aspects.

What technology do neobanks use?

Neobanks function on various technologies such as Blockchain, Artificial Intelligence, Machine Learning, etc. 
The three technological aspects to take care of are hosting infrastructure, core platform, and application’s front end. 
1. Hosting Infrastructure: Microsoft Azure, Amazon Web Services (AWS), and Google Cloud
2. Core Platform: Ruby-on-Rails, Python, PHP Laravel, Java or .NET Core 
3. Database:  MongoDB,
4. Front End: Angular.js, Vue.js, React.js, Objective-C/Swift for iOS, and Kotlin/Java for Android

How much does it cost to build a neobank?

To build a simple neobank like app, it may cost around $40,000 to $60,000 with no fancy features. An app with a few advanced features and moderate complexity can cost $60,000 to $100,000. A complex app with all advanced features may cost around $100,000 to $250,000.

How long does it take to build a neobank?

To build a simple neobank like app, it may take 3 to 6 months with no fancy features. An app with a few advanced features and moderate complexity can take around 6 to 8 months and a complex app with all advanced features may take more than 9 months to deploy.

How does neobanks app benefit businesses?

Because neobanks are online, transfers are much easier, and customers can perform most of their banking without needing a physical location.

Neobank
THE AUTHOR
Digital Marketing Manager
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Driven by a deep curiosity and a thirst for knowledge, Mann constantly seeks to uncover the latest trends and innovations in the tech industry. His ability to dive into complex concepts and distill them into engaging content sets him apart as a reliable source of information for his readers.

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