We have all gotten used to 10-minute meal deliveries and super-fast 5G internet speeds, so it grates on our nerves that we must wait all day for a bank transaction to complete. With today’s tech-savvy users, traditional banking, which has been the standard for hundreds of years, needs to catch up. A few concerns plaguing conventional banking institutions are long wait times, security breaches, and business hours set in stone. Enter Neobank in all its glory. Fintech companies will build a neobank for banking, saving, and investment purposes (see the Topflight comprehensive entry).
These modern banks are only available online and have no physical locations. They offer digital banking products optimized for mobile devices, including lending, money transfers, and payments. Customers can deposit and withdraw funds from them. They provide investment facilities, debit cards, and other services. They even offer loan and credit services. A lot of neobanks collaborate with banks that hold banking licenses, as they cannot function alone. This article focuses on how to build a neobank and everything you should consider when you build your first one.
As we’ve discussed earlier, it is unnecessary to be a bank owner to build a neobank. However, it can be helpful to be involved in the fintech scene, have a working knowledge of neobanks, and have a committed and qualified development team. Follow these steps to learn how to create a neobank from scratch.
Select the program manager you want: You can choose among the BaaS provider and the issuing bank to be the program manager. The program manager has a lot of responsibilities like:
When you create a neobank, it is a fantastic experience with many prospects because the market is growing. However, you should be prepared for obstacles like app security, creativity, and using cutting-edge technology (blockchain, AI, and machine learning). As we delve into how to build a neobank, you must understand the nuance and gravity of the project you are embarking on. Beyond the development and design process, you will struggle with licensing issues and legal turbulence. It’s essential to be financially ready to begin, launch, and protect your neobank.
Reference: https://topflightapps.com/ideas/how-to-make-a-banking-app/