Recently, the tech world has made some impressive advances. One thing that is gaining traction is Banking as a Service (BaaS). Neobanks have been around for over a decade but have only recently become popular. Neobanks have entirely revolutionized the way we bank by using a mobile app. It’s a novel approach to traditional banking.
Experts predict Neobanks will grow 54.8% annually between 2023 and 2030. They will play a significant role in shaping the financial industry positively. And guess what? They will continue to generate substantial revenue for banks for many years.
You can access Neobank from an app on your phone. And get this – if you are really into it, you can even create your own Neobank app by taking banking app development services. But before you do that, you must figure out what makes Neobank unique.
In this article, we will discuss Neobanks and how to make one.
What is Neobanking?
Neobanks are basically online banks that give you access to all your banking needs. Some people call them challenger banks or digital banks. Since they don’t have any physical branches, they can save much money on overhead and streamline their operations. Besides, you can access your account 24/7 from your phone or computer since they have a super easy interface.
Why do businesses choose Neobanks?
Neobanks are a great way to navigate the online world and deal with volatility. Here’s why:
Neobanks are a great alternative to traditional banks because they don’t need legacy infrastructure or physical resources. They are also cheaper for businesses.
Neobanks make business-to-business payments easy with their mobile apps and dashboards.
Benefits of Neobanking
Easy access & convenience – Banking with Neobank is so easy you will wonder why you never did it. Neobank has everything you need, including budgeting tools, investment options, and payment gateways. Even you’ve got your banker at your fingertips.
Competitive fee structures – Usually, Neo Banks have better rates and fees than traditional banks. Since they have lower overhead costs, they can pass the savings on to their customers. Thus, they’re suitable for people who want to save on banking.
Personalized & customer-centric – Neobanks don’t leave anything to chance. Their data-driven insights help them understand customer behavior and preferences so they can tailor solutions accordingly.
Technological innovation – Neobanks are at the forefront of technology. Customers can access their banking services from anywhere, anytime, with their digital banking services, which include mobile banking, online payments, and budgeting tools.
The technology behind Neo Banks
The key to Neobanking’s success is understanding its technology. Here’s what you need to make a Neobanking app:
Mobile App Development: You can build cross-platform apps even if you’re new to app building. You can also hire Apptunix – a leading fintech app development company to create robust and highly secure banking apps. Our banking and financial app development services include mobile banking, online banking, and payment solutions. Our developers can create a solution that’s precisely what you want.
Application Programming Interfaces (APIs)
APIs allow Neobanks to connect to systems and services such as payment networks and identity verification providers. This allows them to offer more services, like personal finance management, budgeting, and real-time payments.
Cloud computing
Neobanks use cloud computing to store customer data and process transactions. Moreover, cloud-based storage solutions give them the flexibility to offer real-time services, like balance updates and transaction notifications.
Cybersecurity
Neobanks take cybersecurity seriously so customers can bank online. They protect customer data and transactions with two-factor authentication, biometric authentication, fraud monitoring, and a secure infrastructure.
AI and Machine Learning
Neobanks, which are online-only banks, use cutting-edge technology like Artificial Intelligence and Machine Learning. These technologies help neobanks provide personalized banking, enhance fraud detection, automate processes, and make data-driven decisions.
Steps to Building a Neobank Mobile App
A Neobank app requires a practical approach. Here are some steps followed by expert fintech app developers around the globe:
Choose your target audience.
You need a clear understanding of your target audience before you design and develop a neobank app.
Conduct thorough market research to identify your potential user’s needs, preferences, and demographics.
This information will help you tailor your app to meet their requirements and create a personalized user experience.
Develop a wireframe
A wireframe is an important first step while investing in any type of fintech app development project. It shows the layout and structure of the app. It helps to identify key features, user interface elements, and navigation paths.
Developers can clearly understand the app’s functionality and user experience by creating a wireframe. This step is essential for ensuring a smooth and efficient app development process.
Appoint Fintech App Developers
If you are ready to make your Fintech app a reality, you need experienced app developers. A developer with experience is essential to decide whether you want a banking app with many features or something simple.
You can build Neobank apps by hiring a developer. However, working with a developer is more cost-effective because it can be tailored to meet your needs, and you can control the timeline.
Configure backend infrastructure
The next step is to configure the backend infrastructure. As part of this process, servers, databases, and other components are set up to support the application’s functionality.
The backend infrastructure is instrumental in the storage of data, the authentication of users, and the communication with external systems. It’s crucial to configure the Neobank mobile app right for security and efficiency.
Neobank API integration
Neobank apps need Neobank API integrations. The Neobank API combines Neobank’s backend with the app’s frontend, so banking data and functions stay secure and in real-time.
If you add the Neobank API, you can use the app to pay bills, transfer money, and check your balance. The intuitive interface keeps the app updated with the latest banking features.
When integrating Neobank APIs, you must consider security, scalability, and compatibility.
Ensure security compliance
Keeping customer information safe and secure is a top priority for developers. A strong and indestructible app will keep cyber-attacks at bay, making Neobank a leader.
So, learn what security laws apply to your app: PCI DSS (Payment Card Industry Data Security Standard), Payment Token Generation, etc. It makes your app more secure and scalable.
Testing & deployment
Once you fix all the bugs and issues, you’re done with fintech app development, the right way. It’s a good idea to automate testing. The Neobank apps go through a bunch of testing to ensure they work perfectly as desired.
Read More: What is Nubank? A Dissection of the Largest Neobank
An app test isn’t just one-and-done. The testing process should continue after the app is released. It’s then easy to update and improve the app when needed. It can be customized, upgraded, and kept running smoothly. Eventually, that’ll make sure it works.
Apptunix is your go-to mobile app developer!
The banking industry is about to get a big boost in 2023 and beyond from this cutting-edge fintech solution! Neobanking offers streamlined operations, top-notch security, and value-added services that build long-term relationships.
Moreover, Apptunix is one of the top banking and fintech app development companies around the world. We build robust mobile apps for different industries, and our domain experts ensure the UI/UX, API integration, MVP build, and more are awesome.
Our Neobank apps will make you the talk of the town. Let us help you make an app that your users will love!
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