Have you always dreamt of starting a bank, just by yourself? Well, now you can! Think of a platform where your dream can come true without the hassle of numerous logistic support and documents. Yes, we are talking about Neobank, one of the most crunched, innovative, and technology-driven approaches, already on its way to revolutionizing the whole concept of the financial world and the traditional banking system wrapped within.

Just think about a fully-formed digital banking model combining all the financial services, including cards, fiat and crypto exchange, and transfer services, even without needing a physical branch. Neobank will turn this ‘impossible’ into ‘possible’ for you. And that too by ensuring a proven track record of awesome profit margins.

Why don’t you take a look to know more? Here you go!

What is a Neobank?

Think of all the services of a physical bank and much more through a non-physical direct online banking- that’s what simply a Neobank is. Users can use it as a personal financial assistant ready to help them save, spend, and invest smarter.

In short, Neobank is an online-only bank that operates entirely through mobile apps or websites. While leveraging advanced technology and data analytics to provide customers with a seamless, personalized banking experience, Neobank comes with lower fees, faster transaction times, and more flexible features.

Services: What to Expect from Neobank?

Everything! Yes, that’s what you should expect and will receive from Neobank. Without dealing with the pesky lines, hidden fees, and all the possible cons of traditional banks, users can actually enjoy every benefit of the banking system from Neobank. Let’s face it. We all waste hours in the bank queue while getting depressed. Well, this problem will vanish in a jiff with Neobank.

Here are all the services that users will be able to enjoy from Neobank-

1. Cards: Neobank offers a variety of debit and credit cards with competitive rates and benefits. These cards can be used for both online and offline purchases.
2. Fiat and Crypto Exchange: Many neobanks allow customers to buy, sell, and hold fiat currencies and cryptocurrencies. This feature has made them particularly popular among individuals and businesses looking to invest in digital assets.
3. Transfer Services:Neobank provides the fastest and most affordable international and domestic money transfers. Upon requirement, it includes peer-to-peer payment options.
4. Personalized Banking: By using data analytics, Neobank can tailor their services to meet each customer's specific needs. This includes personalized recommendations, budgeting tools, and investment advice.
5. Loan Services: Just like the traditional banking system, the user will be able to enjoy their loans from Neobank, that too without applying in the traditional manner. 

Key Features: Why Should You Choose Neobank?

The West is loving Neobank. Why? Cause, besides providing extraordinary services, Neobank comes with multiple amenities to make users’ lives a thousand times easier. Its features are not only hassle-free but also user-friendly.

Let’s give you a clear view-

Better Data Security

Neobank uses 100% authentic databases to ensure user's identity & document accuracy. Whether you are worried about cybercriminal activity or anything major like this, you can be at ease with Neobank. 

Biometric authentication

Dealing with your absent mind every then and now? Well, what is your card PIN code? No worries!

Neobank offers fingerprints, facial recognition, and other biometrics to ensure the fastest transaction from a mobile app without worries. 

Digital Lending

Applying for loans doesn't require multiple form fill-ups and attaching documents now. At least, not in Neobank. Besides, unlike the credit-based scoring models of traditional banks, Neobank uses a digital footprint to get users' actual financial data. 

Gamification

You can turn the banking procedure even into fun by using Neobank. Besides icons and a personal note option, you can enjoy experimental gamification with Neobank.

Benefits of Using a Neobank

• Convenience: Neobank can be accessed from anywhere with an internet connection, eliminating the need to visit a physical branch.
• Lower Fees: Neobanks often have lower fees compared to traditional banks, especially for international transfers and ATM withdrawals.
• Faster Transactions:Transactions are typically processed more quickly through Neobank due to their digital infrastructure.
• Enhanced Security: Neobank employs advanced security measures to protect customer data and funds.
• Innovative Features: Neobanks often offer unique features and services that are not available at traditional banks.
  

How to Make Money by Neobank?

Among the five established business models, you can choose the best one to develop your Neobank & generate revenue. It can be:

1. Interchange-led: In this process, you, as a Neobank owner, can charge money for each transaction. 
2. Credit-led: Credit can be the source of a bank's revenue. Under the Credit-led system, Neobank applies this method.
3. Ecosystem-led: Integrating multiple fintech solutions through using application programming interface (API) technology is popularly known as Ecosystem-led Neobank
4. Asset-led: Deposit purchase & saving account generates the main revenue for Neobank in this case.

What do You Need to open a Neobank?

There are some basic credentials that you’ll be in need of while opening a Neobank on your own. Don't worry. All you need to enter in this game are:

1. A banking license, which you can either get or rent.
2. A developer license for Apple and Google, so that you can develop your app.
3. A few helpers, which you can also do by yourself. But professional support will make your process easier in many ways. To build your Neobank, contact us.
4. WordPress or similar site, which you'll need for hosting.
   
   

Top 5 Neobank in the world

No sir, you’re not the only one in this game. Well, Neobank is still a new subject for some continents. But the Wests? They are properly utilizing it! With an innovative approach, cutting-edge technology, and a fresh banking perspective, Neobanks are winning every one. 

Here are the top 5 Neobanks making waves globally:

1. SoFi: SoFi started in 2011 to help students pay for college. It uses technology to offer financial products for saving, investing, and protection. At first, SoFi used a model where alumni helped students get loans. Later, it changed to a model where it directly gives loans to responsible customers. Now, SoFi also offers checking accounts and investment options. Almost six million people use SoFi's services.
2. Chime: Chime is a popular digital bank. It offers free checking and savings accounts with no minimum balance. Chime has easy-to-use features, like automatic savings. It focuses on customer experience and offers seamless banking without any fees.
3. Revolut: Revolut is a popular UK Neobank founded in 2015. It has grown quickly and now has 35 million customers and 500,000 business customers. Revolut helps people manage their money easily. It offers accounts for currency exchange, debit cards, virtual cards, stock trading, and cryptocurrency. Revolut processes millions of transactions each month.
4. GoBank: GoBank is a Neobank based in the US that offers checking accounts. It has a monthly fee of $8.95, but the fee is waived if you deposit at least $500. GoBank is good for people who need help opening a bank account or want an easy-to-use online account. You can only open a GoBank account by getting a debit card at a store like Walgreens or Walmart and registering it online. GoBank has a large ATM network, and a mobile app, and allows cryptocurrency transactions. However, it charges fees for cash deposits and doesn't offer joint accounts.
5. Nubank: Nubank is a Brazilian neobank founded in 2013. It has raised billions of dollars and operates in Brazil, Mexico, and Colombia. Nubank helps over 70 million customers manage their finances better. It uses technology to create new financial solutions for businesses and individuals. Nubank is praised for helping people in underserved markets have access to financial services. 
   
   

Operating a Neobank: Is it Tough?

Operating a neobank requires a strategic approach that combines technological expertise, financial acumen, and regulatory compliance. Without a doubt, you can do it. But to ensure the fastest and best output, a team will be a tremendous support for you. Before taking any decision, let’s take a look at the step-by-step guide on Neobank Operating System to help you navigate the process:

Develop a Business Plan:

• Clearly define your target market and value proposition.
• Create a detailed financial model to project revenue and expenses.
• Develop a marketing and branding strategy to attract customers.

Obtain Necessary Licenses and Approvals:

• Research and comply with regulatory requirements in your jurisdiction.
• Apply for banking licenses and permits.
• Ensure data privacy compliance.

Build a Technology Platform:

• Choose a reliable technology partner.
• Develop a user-friendly digital platform with strong security measures.
• Integrate with payment processors and financial institutions.

Develop Products and Services:

• Offer core banking services like current accounts, savings accounts, and loans.
• Introduce innovative products to differentiate your neobank.
• Tailor services to your target market.

Acquire Customers and Build Brand Awareness:

• Utilize digital marketing channels.
• Offer incentives and promotions to attract customers.
• Focus on providing excellent customer service.
  
  

Manage Risk and Compliance:

• Implement risk management strategies to mitigate risks.
• Ensure regulatory compliance.
• Conduct regular audits and assessments.

Scale and Expand:

• Monitor performance and growth.
• Expand product offerings and geographic reach.
• Continuously adapt to the changing fintech landscape.

Differences Between Neobanks and Traditional Banks:

1. No Physical Branches: Unlike traditional banks, neobanks operate entirely online. This allows for a more streamlined and less costly structure but may limit face-to-face interaction.

2. Lower Overhead Costs: With no physical infrastructure, neobank saves on costs that are then passed on to the customer in the form of lower fees or higher savings interest rates.

3. Faster Product Innovation: Neobanks are typically more agile in introducing new features, thanks to their digital infrastructure, compared to traditional banks that rely on legacy systems.

4. Target Market: While traditional banks serve a wide range of demographics, neobanks are often focused on younger generations or underserved segments like freelancers or small businesses.

So, there you have it. An A to Z guideline to start a Neobank! Without any doubt, Neobank is the future of banking, offering convenience, savings, and flexibility. And  Dhrubok is all prepared to develop this futuristic banking system for you. Now the most important question is, are you ready to be a part of that switch? 

With your long-cherished dream & positive mindset, let’s start then!