In this blog, Quytech has answered all these questions in detail. So, if you are curious to learn about neobanking app development in detail, read this blog till the end.
So, let’s get started!
During this era when everything and everyone is going online, neobanking app development is taking the spotlight in the financial world. Fintech startups and businesses are investing significant resources into the development of these apps to meet the surging demand for digital banking services.
But, what is a neobanking app? How to develop a custom neobanking app? Are there any benefits to developing it?
What are Neobanking Apps?
As the name suggests, the neobanking app is the dedicated app for the neobanks. But what is a neobank?
A neobank is simply a bank or a fintech business that offers a range of banking services, such as account management, P2P payments, cross-border money transfers, issuance of debit and credit cards, budgeting tools, and more, without a physical presence. The banking services provided can vary from neobank to neobank.
Unlike traditional banks, neobanks are present only digitally. But, is that the only difference between the neobank and the traditional banks? Well, more factors distinguish the two.
Explore the full comparison between neobanks and traditional banks in the next section.
Neobanks vs Traditional Banks: A Full Comparison
Below is a comprehensive comparison between neobanks and traditional banks:
| Factors | Neobanks | Traditional Banks |
| Physical Presence | Usually operate without physical branches | Typically have physical branch networks |
| Accessibility | Primarily digital platforms (apps, websites) | Branches, ATMs, online banking |
| Cost Structure | Lower fees or fee-free | Have various fees for different services |
| Product Range | Primarily basic banking services (services can vary) | End-to-end banking services including loans, investments, etc. |
| Personalization | Can offer more personalized services | May offer personalization but varies widely |
| Customer Experience | Focus on user-friendly interfaces | May vary, often influenced by branch service |
| Market Share | Growing rapidly, but still a smaller portion | Dominant share in most markets |
| Innovation | Quick to adopt new technologies | Adoption of technology may be slower |
| Regulatory Oversight | Subject to financial regulations | Similarly regulated but with a longer history |
| Account Opening | Often quicker and entirely online | May require in-person visits or paperwork |
| Risk Appetite | May be more willing to take risks | Typically have a more conservative approach |
| Customer Support | Often digital-first, responsive | Multi-channel support (phone, in-person, etc.) |
So, this is the detailed differentiation between the neobanks and traditional banks. The market share of neobanks is smaller than that of traditional banks, but it is gaining traction exponentially.
Read further to analyze the market statistics of neobanking app development.
Neobanking App Development: Current Market Statistics
Here are the latest market statistics for neobanking app development:
Source: Statista
- The global neobanking market will grow at a CAGR (compound annual growth rate) of 54.8% from 2023 to 2030.
- According to estimations, the total number of users in the neobanking market will be 80.78m by 2028.
- According to reports, in 2024, the average transaction value per user in the neobanking market amounts to US$28.85k.
By looking at the numbers, it is clear that the neobanking app development market will boom in the coming years. Thus, it is profitable to develop a neobanking app that will disrupt the market. So, without further delay, let’s move on to the development guide to build a neobanking mobile app.
How to Develop a Neobanking App?
Here is the step-by-step guide for neobanking app development in this section.
- Define Your Requirements
The first and foremost step for developing a neobanking app is to define your requirements. You need to identify the type of neobanking app you want to develop, its features and functionalities, target user base, regulatory compliances, and more.
Moreover, you need to analyze other neobanking apps to understand their workings, unique selling propositions, weaknesses, etc. It will help you further in neobanking app development.
- Find a Fintech App Development Partner
For building a neobanking app, you will require in-depth app development knowledge and expertise, awareness of the latest fintech trends, hands-on experience in leveraging the latest tools and frameworks, etc.
Thus, you must hire a leading mobile app development company as your technical partner for neobanking app development. You can find the best fintech app development companies here.
- Create the Wireframe
With your fintech app development partner, create the basic wireframe of the neobanking app. Design the rough outlines of user interfaces, icons, templates, etc.
Wireframing saves time and helps mobile app developers in neobanking app development in further stages.
- Prepare the MVP (Minimum Viable Product)
Once the wireframes are prepared, proceed with developing the MVP (minimum viable product) of the neobanking app.
The MVP development approach allows developers to iterate and make changes to the neobanking simultaneously, resulting in faster development and rapid adaptation to user feedback.
Develop the frontend and backend of the app and integrate third-party APIs to empower the neobanking app with various capabilities, such as P2P payments, evaluating credit scores, push notifications, and more.
- Finalize the Neobanking App Development
Post MVP development, finalize the neobanking app development by integrating the advanced features and functionalities aligning with the business requirements and market trends.
For instance, you must integrate an AI-powered credit score analyzer to evaluate the user’s financial history and other details. Moreover, you must implement a generative AI-enabled chatbot to assist users with their queries around the clock.
- Security Compliances
Neobanking apps are highly vulnerable to cyber-attacks and data breaches. Thus, it is crucial to implement security compliances and data protection measures to protect user’s financial data.
Therefore, you must implement the relevant financial regulations and standards, such as GDPR (General Data Protection Regulation), PCI DSS (The Payment Card Industry Data Security Standard), and PSD2 (Payment Services Directive Two). Also, you must integrate high-end security measures, such as biometric authentication, end-to-end encryption, one-time passwords, and more, to avoid unwanted access to the neobanking app.
- Testing and Quality Assurance
At this stage, test the neobanking app rigorously to check its functionalities. You can use the app on various devices and platforms to ensure a consistent user experience.
Moreover, you may release a Beta version to test and gather user feedback for the neobanking application.
- Deployment
After testing the app, deploy the neobanking app on app stores. Also, closely watch the app’s performance using various app KPIs (key performance indicators) and make necessary changes frequently.
Moreover, keep advancing your neobanking app with new features and functionalities to stay relevant in the market for a long time.
Following this neobanking app development guide, you can build a custom neobanking app tailored to your business requirements. Now, let’s discuss the features you must integrate into the neobanking app.
Top Features of Neobanking Apps
The top features of neobanking apps include:
- Easy Account Opening
The best neobanking apps provide an instant account opening feature. Using this feature, users can easily open their neobanking account instantly, providing minimum details.
- Multiple Payment Options
Another top feature of neobanking apps is multiple payment options. Nowadays, people are using a wide range of payment options to pay and receive money, such as netbanking, credit/debit cards, digital wallets, and cryptocurrencies.
Hence, it is compulsory to have a multiple payment options feature in a neobanking app.
- Card Management
The card management feature allows users to manage their debit and credit cards all in one place. They can modify the limits, change PINs, and pay credit card bills using the card management feature in the neobanking app.
- Online Lending
The online lending feature allows users to lend peer-to-peer loans at a decided interest rate. Users can apply for instant loans, as well as lend loans to others using this feature.
- Real-Time Fraud Detection
When it comes to lending loans discussed in the previous feature, it becomes necessary to have a real-time fraud detection feature to analyze credit scores and identify loan defaulters in real-time.
The fraud detection feature leverages artificial intelligence and machine learning algorithms to analyze the credit scores of the user seeking for loan and notify lenders about the past financial history in real-time.
- Expense Trackers and Budgeting Tools
Expense trackers and budgeting tools are gaining popularity in the neobanking apps. As the name suggests, these tools help users to track their spending and help them prepare budgets accordingly.
- Gamification
The gamification feature enhances the user experience significantly. Users are rewarded with badges and reward points when they complete any specific level or task.
This encourages them to stick with good financial habits and use the neobanking app frequently.
- Push Notifications
The push notifications feature provides real-time updates regarding account balances, transactions, and security alerts. This feature is also used to provide users with information regarding new offers, interest rates, last bill payment dates, etc.
- Generative AI-Powered Chatbot
The generative AI-powered chatbot addresses user queries and provides them with personalized responses 24/7/365. The chatbot understands the context of user queries using machine learning capabilities and delivers a custom response in real time.
Therefore, these are the top features of neobanking apps that you must consider for your neobanking app development. Now, let’s proceed and explore the technology stack you will require for developing a neobanking app.
Technology Stack for Neobanking App Development
The following is the technology stack you can consider using for building a custom neobanking app.
| Component | Technology Stack |
| Frontend development | React.js, Node.js |
| Backend development | Django, Lavarel, Ruby on Rails |
| Database | MongoDB, PostgreSQL |
| Authentication | JSON Web Tokens (JWT) |
| API | RESTful API |
| Cloud Infrastructure | AWS, Microsoft Azure |
| Push Notifications | Firebase Cloud Messaging |
| Security | HTTPS, SSL/TLS |
| Deployment | Docker, Kubernetes |
| Monitoring | Prometheus, Grafana |
So, this is the suggested technology stack to develop a neobanking app. Please note that this tech stack is a recommendation. You can use other tools and technologies that align with your needs.
Top Neobanking Apps
The top neobanking apps are as follows:
- Chime
Chime is a top neobanking app having features, such as fee-free checking and savings accounts, early direct deposit, automatic savings tools, and a Visa debit card.
Additionally, Chime offers features like rounding up purchases to the nearest dollar and depositing the difference into a savings account. The app has gained popularity for its user-friendly interface, lack of traditional banking fees, and focus on providing accessible banking services to a wide range of customers.
Downloads: 10M+
- Revolut
Revolut is a leading neobanking app that has revolutionized the way individuals manage their finances.
Users can open an account within minutes and access features like budgeting tools, currency exchange at interbank rates, cryptocurrency trading, peer-to-peer payments, and even stock trading, all from the Revolut neobanking app.
This is why the app has become a go-to choice for those seeking modern, flexible banking solutions that align with today’s digital lifestyle.
Downloads: 10M+
- Varo
Varo is another prominent neobanking app that has gained attention for its innovative approach to personal finance management. It offers a comprehensive suite of financial services tailored to meet the needs of modern consumers. Users can easily open an account, deposit checks, transfer funds, and pay bills all through the Varo neobanking app.
The app distinguishes itself through features like no monthly fees, early direct deposit, high-yield savings accounts, and personalized financial insights to help users make better decisions about their finances.
Downloads: 5M+
- Acorns
Acorns is another prominent neobanking app that uniquely combines banking services with investment opportunities. The app operates on a “round-up” model, where users link their debit or credit cards and Acorns automatically rounds up their purchases to the nearest dollar, investing the spare change into diversified portfolios.
Moreover, the app offers subscription-based accounts with features like retirement planning, checking accounts, and a debit card that offers cashback rewards.
Downloads: 10M+
- Betterment
Last but not least, Betterment is another best neobanking app having features like goal-based investing, tax-loss harvesting, and personalized portfolio recommendations.
Moreover, the cash management feature in the app provides high-yield savings accounts and checking accounts with no minimum balance requirements or monthly fees.
Downloads: 500K+
Therefore, these are the top neobanking apps available in the market.
Concluding Thoughts
With this, we have come to the end of this neobanking app development guide. We hope you found it useful! Neobanking apps have become popular in recent times.
Thus, it is the best time to develop a neobanking app and provide your users with an enhanced banking experience. So, partner up with a leading fintech app development company and get your neobanking app developed.
How Quytech Can Help With Neobanking App Development?
Quytech is a leading fintech app development company in India, with a presence in the USA, UK, Middle East, and other countries. We help clients looking for the best fintech app development services by building customized mobility solutions and software that aligns best with their needs.
Moreover, we implement futuristic thinking and a strategic development approach to build fintech mobile apps with high-end features and functionalities that disrupt the market. For more information, you can explore our portfolio page.