NeoBanking App Development: A Complete 2024 Guide

Neobanking app development is becoming more and more popular in the financial industry in this day and age of everything and everyone being online. To keep up with the increasing demand for digital banking services, fintech startups and companies are devoting a large amount of resources to the development of these applications.

A neobanking app, though, is what? How can one create a unique app for neobanking? What are the advantages of developing it?

Appic Softwares has provided thorough responses to each of these queries in this blog. Read this blog through to the finish if you’re interested in learning everything there is to know about developing neobanking apps. Now let’s get going!

• What are Neobanking Apps?  
• Neobanks vs Traditional Banks: A Full Comparison 
• Neobanking App Development: Current Market Statistics  
• How to Develop a Neobanking App? 
• Top Features of Neobanking Apps 
• Technology Stack for Neobanking App Development 
• Top Neobanking Apps

What are Neobanking Apps?  

The neobanking app is the specific app for neobanks, as the name implies. What, though, is a neobank?

A neobank is just a bank or fintech company that operates virtually and provides a variety of financial services like P2P payments, cross-border money transfers, debit and credit card issuing, account management, budgeting tools, and more. The banking services offered by different neobanks may differ.

Neobanks, as opposed to regular banks, exist solely online. Is it, however, the sole distinction between neobanks and conventional banks? More elements, that is, set the two apart.

See a detailed comparison of traditional banks and neobanks in the following section. 

Neobanks vs Traditional Banks: A Full Comparison 

A detailed comparison of traditional banks and neobanks may be found below:

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.)

Thus, this is how neobanks and regular banks differ in specifics. Neobanks have a smaller market share than traditional banks, but their growth is exponential.

Continue reading to examine the neobanking app development market statistics.   

Neobanking App Development: Current Market Statistics  

The most recent market data for the creation of neobanking apps is as follows:

From 2023 to 2030, the global neobanking market is expected to expand at a compound annual growth rate (CAGR) of 54.8%.

By 2028, there will be 80.78 million customers worldwide in the neobanking market, according to projections.

The average transaction value per user in the neobanking sector is expected to reach US$28.85k by 2024, based on research.

The data indicates that the neobanking app development market is expected to grow rapidly in the upcoming years. Consequently, creating a disruptive neobanking app is profitable. So without further ado, let’s get started on the development guide for creating a mobile app for neobanking.

How to Develop a Neobanking App? 

This section contains a step-by-step guidance for developing neobanking apps.

Establish Your Needs

Establishing your needs is the first and most important stage in creating a neobanking application. You must decide what kind of neobanking application you want to create, as well as its features and functionalities, intended user base, compliance with regulations, and other factors.

Additionally, you must examine various neobanking applications to comprehend their features, advantages, disadvantages, etc. It will assist you in developing neobanking apps going forward.

Locate a Partner for Fintech App Development

You will need in-depth knowledge and experience with app development, familiarity with current financial trends, practical experience with the newest frameworks and technologies, etc. to create a neobanking app.

As a result, you need to work with a top mobile app development business as your technical partner while creating neobanking apps. Here is where you can locate the top fintech app development businesses.

Make a wireframe.

Work with your fintech app development partner to draft the neobanking app’s basic wireframe. Create the basic layouts for templates, icons, and user interfaces.

Time is saved and mobile app developers might benefit from wireframing in later phases of the development of neobanking apps.

Get the Minimum Viable Product (MVP) ready.

After the wireframes are ready, work on creating the neobanking app’s MVP (minimal viable product).

By using the MVP development approach, developers can simultaneously iterate and make changes to the neobanking, which speeds up development and makes it easier to respond to user feedback.

Create the program’s front end and back end, then include third-party APIs to give the neobanking app additional features like push alerts, P2P payments, credit score evaluation, and more.

Complete developing the Neobanking app.

Complete the neobanking app development by incorporating advanced features and functionalities that are in line with market trends and business requirements after the MVP has been developed.

For example, to assess the user’s financial history and other facts, you need to integrate an AI-powered credit score analyzer. Additionally, you need to put in place a chatbot with generative AI capabilities so that users may get help whenever they need it.

Compliances with Security

Neobanking applications are quite susceptible to data leaks and cyberattacks. Therefore, in order to safeguard user financial information, security compliances and data protection procedures must be put into place.

As a result, you have to put into effect the pertinent financial laws and guidelines, like PSD2 (Payment Services Directive Two), PCI DSS (Payment Card Industry Data Security Standard), and GDPR (General Data Protection Regulation). To prevent unauthorized access to the neobanking app, you must also incorporate advanced security mechanisms like biometric verification, end-to-end encryption, one-time passwords, and more.

Quality Control and Testing

Check the neobanking app’s functionality at this point by giving it a thorough test. To guarantee a consistent user experience, the app is compatible with a variety of platforms and devices.

Additionally, you might launch a beta version of the neobanking application to test it and get user input.

Implementation

Release the Neobanking app to app stores following testing. Additionally, use a variety of app KPIs (key performance indicators) to monitor the app’s performance attentively and make the necessary adjustments on a regular basis.

Additionally, to remain competitive in the market for a long time, constantly adding new features and functionality to your neobanking app.

You can create a unique neobanking app that meets the needs of your company by using this development guide for neobanking apps. Let’s talk about the features that the neobanking app needs to include now.

Top Features of Neobanking Apps 

Top characteristics of apps for neobanking include:

Simple Account Creation

Instant account opening is a characteristic of the finest neobanking apps. With the help of this function, users can quickly and conveniently open a Neobanking account with just the necessary information.

Various Methods of Payment

Multiple payment alternatives are another great feature of neobanking apps. These days, a variety of payment methods, including digital wallets, credit/debit cards, netbanking, and cryptocurrencies, are used by consumers to send and receive money.

Therefore, a functionality that allows for numerous payment alternatives must be included in a neobanking app.

Card Administration

Users may conveniently manage both their credit and debit cards in one location with the card management tool. They can use the card administration tool in the Neobanking app to adjust the limits, change PINs, and settle credit card bills.

Internet Loans

Users can lend money to other users at a predetermined interest rate through the online lending tool. With this service, users can both apply for rapid loans and lend money to others.

Instantaneous Fraud Detection

A real-time fraud detection function is required when it comes to lending loans, as covered in the previous feature, in order to evaluate credit scores and quickly identify loan defaulters.

Using artificial intelligence and machine learning algorithms, the fraud detection feature analyzes a borrower’s credit score and instantly notifies lenders of their prior financial behavior.

Tools for Tracking Expenses and Budgeting

In the neobanking apps, budgeting and expense tracking features are becoming more and more common. These tools assist users in tracking their expenditure and creating appropriate budgets, as their name implies.

Gamification

The gamification element greatly improves the user experience. When users finish a level or task, they are rewarded with badges and reward points.

This incentivizes them to maintain sound financial practices and make frequent use of the Neobanking app.

Push Alerts

The real-time information on account balances, transactions, and security alerts are provided by the push notifications feature. Users can also get information from this feature about new offers, interest rates, the date of the previous bill payment, and other things.

A Chatbot Powered by Generative AI

The chatbot, driven by generative AI, responds to user inquiries and offers tailored responses around-the-clock. Using machine learning capabilities, the chatbot comprehends the context of user inquiries and provides a personalized response instantly.

As a result, when developing a neobanking app, you need to take these key elements into account. Let’s now investigate the technology stack needed to create a neobanking application. 

Technology Stack for Neobanking App Development 

The technological stack listed below is what you might use to create a unique neobanking application.

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

This is the recommended technology stack for creating a neobanking application. It should be noted that this tech stack is suggested. Other technologies and techniques that suit your needs can be used.

Top Neobanking Apps

The following are the top neobanking apps:

• Chime

With features including fee-free checking and savings accounts, early direct deposit, automated savings tools, and a Visa debit card, Chime is a top neobanking app.

Chime also has functions like storing the difference in a savings account and rounding purchases to the closest dollar. Due to its easy-to-use interface, absence of standard banking costs, and emphasis on offering accessible banking services to a diverse clientele, the app has become increasingly popular.

• Revolut

One of the most popular neobanking apps, Revolut has completely changed how people handle their money.

With the Revolut neobanking app, users can open an account in minutes and get access to services like peer-to-peer payments, cryptocurrency trading, budgeting tools, and even stock trading. The app also offers currency exchange at interbank rates.

Because of this, the app has grown to be the preferred option for anyone looking for cutting-edge, adaptable banking options that fit with the modern, digital lifestyle.

• Varo

Another well-known neobanking app that has drawn notice for its creative approach to managing personal finances is Varo. It provides a full range of financial services designed to satisfy the demands of contemporary customers. The Varo neobanking app makes it simple for users to register an account, deposit checks, transfer money, and pay bills.

With features like early direct deposit, no monthly fees, high-yield savings accounts, and tailored financial insights to assist users in making smarter financial decisions, the app stands out from the competition.

• Acorns

Another well-known neobanking software that mixes investment opportunities with banking services is called Acorns. By linking users’ debit or credit cards, the “round-up” mechanism of the app allows Acorns to automatically round up transactions to the next dollar and invest the spare change in various portfolios.

The program also provides subscription-based accounts with features like checking accounts, cashback rewards on debit cards, and retirement planning tools. 

• Betterment

Not to be overlooked, Betterment is also another top neobanking app with features like tailored portfolio suggestions, goal-based investing, and tax-loss harvesting.

Additionally, the app’s cash management function offers high-yield checking and savings accounts without monthly fees or minimum balance requirements. 

Conclusion

the landscape of NeoBanking app development in 2024 offers exciting opportunities for innovation and growth. By leveraging the insights and strategies outlined in our guide, developers can create transformative financial solutions that meet the evolving needs of customers and drive success in the digital banking space.

Fintech is always changing, and making an app like an e-wallet requires a lot of careful planning and the newest technology. Using Appic Softwares as a guide gives you a strategy plan to get through the tough parts, which encourages innovation and makes it possible to create groundbreaking fintech apps in 2024 and beyond.

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