How To Build A Digital Bank Or Neobank In 2023: Step-By-Step
October 8, 2023
Explore key neobank features and learn step-by-step process for developing your custom neobank from the ground up.
neobank app development
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Neobank app development involves crafting digital banking solutions that provide comprehensive banking services like account management, payments, and financial planning without the need to establish and maintain traditional bank branches. Benefiting from technologies like open banking and banking APIs, cross-border payments, foreign exchange, KYC, AML, etc., neobanks offer traditional bank-like performance and additional advanced capabilities at a lower cost and with a better user experience.
$6.37
trillion
The projected global transaction value in the neobank market in 2024.
Statista
22.0%
is the average annual growth rate (CAGR) of the neobank market.
Unit21
85%
of neobank users state that they would reccomend their fintech solution to acquintacies.
Unit21
neobank project for a traditional banking business:
Having an established traditional banking business doesn’t prevent you from starting a neobank — on the contrary, you may use your current resources and infrastructure to reach new heights:
Join digital transformation revolution: Traditional banks can leverage neobank projects to modernize their operations. This transformation helps attract tech-savvy customers who prefer digital banking platform solutions.
Expand market reach: Tap into new market segments! Particularly, reach younger generation and digital natives, who may not be impossible to reach through traditional banking channels.
Gain a competitive edge: Neobank gives traditional institutions a competitive edge in terms of technology, customer experience, and new product offerings. Not only does it enable cross-selling of payment services and products, but it also allows to compete with challenger and digital banks.
neobank project for a challenger banking business:
As an established or an emerging challenger bank, launching your digital banking app is the way to reshape the way services are provided in the niche. Neobank has a great chance to become your main offering:
Powerful market positioning: Challenger banks can leverage neobank projects to further differentiate themselves from traditional banks, emphasizing their agility, innovative technologies in place, and customer-centric approach.
Undisputed scalability and efficiency: Digital-first approaches reduce overhead costs associated with maintaining physical branches and legacy systems. At the same time, scalable app architecture allows for introducing features fast and scaling to growing number of users
Innovate rapidly: Challenger banks are in prime position to innovate rapidly. Neo banking is an ideal project to quickly implement and test new financial products, adopt emerging technologies, and adapt to changing market dynamics setting new standards in financial services industry.
minimize neobank launch risks
with our extensive experience
Time to market
Craft MVP first to launch faster
“Every second we delay is an invitation for competitors to take the lead”
“Every second we delay is an invitation for competitors to take the lead”
Craft MVP first to launch faster
With DashDevs, you gain a competitive edge by launching your product first. Our agile approach accelerates the MVP development process. We’re not just fast, we’re efficient and effective, ensuring your solution is market-ready in a timeframe that suits you.
Cybersecurity
Industry-latest security practices and protocols
“Will customers trust in the security of our product?”
“Will customers trust in the security of our product?”
Industry-latest security practices and protocols
We are proficient in implementing cybersecurity measures. This includes encryption technologies, secure coding practices, multi-factor authentication, and regular security audits. By prioritizing cybersecurity from the outset, DashDevs ensures that your neobank app can withstand potential cyber threats and vulnerabilities.
Continuous monitoring and updating
Cybersecurity is not a one-time task but a continuous process. We can provide ongoing monitoring and regular updates to the neobank app that helps in early detection of potential security breaches, ensures that the app’s defense remain robust and relevant against evolving cyber threats.
Regulatory compliance
We build compliance into technology
“Will we meet ever-evolving regulations in the financial market?”
“Will we meet ever-evolving regulations in the financial market?”
We build compliance into technology
DashDevs deisgn and implement technology solutions that inherently comply with regulatory requirements. This can include reporting features, data handling procedures, transaction processing security features, that align with legal standards. We also can establish automated compliance checks.
Choosing banking partners and integration providers
We integrate 70+ vendors in financial solutions
“Can we find reliable partners to handle back-end banking operations?”
“Can we find reliable partners to handle back-end banking operations?”
We integrate 70+ vendors in financial solutions
DashDevs can assist in selecting the most compatible and secure banking partners and integration providers. We offer expertise on the technical compatibility of potential partners and help integrate their services seamlessly with the neobank's platform, ensuring smooth and efficient operation without your strict control over your parther’s operations needed.
Standing out in the market
Product discovery and tailored feature development
“How can we compete with market veterans and stand ahead of same-size competitors?”
“How can we compete with market veterans and stand ahead of same-size competitors?”
Product discovery and tailored feature development
To outpace the neobank software companies competition, you need to understand both user needs and market gaps. Through product discovery phase, we help unveil what users crave and what competitors are missing. This insight guides the development ensuring that your product can stand beyond the competition.
Lack of expertise
Our 80+ neobank and payment app launch experience has you covered
“What if we make costly mistakes because of lack of expertise?”
“What if we make costly mistakes because of lack of expertise?”
Our 80+ neobank and payment app launch experience has you covered
With DashDevs vast experience, you can be sure you are prevented from making expensive mistakes. Our track record of successfully launching more than 80 neobank and other financial products provides us with extensive knowledge and tested methodologies.
Lack of dev resources
Our 200+ software experts are here to help
“Experienced in-house specialists are so expensive”
“Experienced in-house specialists are so expensive”
Our 200+ software experts are here to help
Don't let resource limitations hold back your business ambitions. Leverage our IT services for a neobank to propel your project forward. Whether it's outsourcing, outstaffing, or consulting, we offer flexible engagement models to align with your unique needs.
Craft Your Neobank Story: Together with DashDevs team
neobank app development
services
open banking integration
DashDevs team integrates an open banking API for neobanks to be able to access and aggregate customer banking data from licensed financial institutions. Essential for providing open banking services like financial health analytics as well as delivering a personalized customer experience.
banking card issuance
This key neobanking module integration provided by DashDevs enables issuing of debit and credit cards, both virtual and physical. Banking card issuance encompasses handling everything from card design to distribution and activation, similar to this procedure at any traditional bank.
aml & fraud prevention
DashDevs develops and integrates tools and protocols to detect and prevent fraudulent activities during customer data handling and money laundering. This service option ensures the mandatory high level of neobank cybersecurity and helps achieve regulatory compliance.
foreign exchange & cross- border payments
This neobank module integration enables to receive and send international transactions, offering end customers the ability to make cross-border payments and currency exchanges. Foreign exchange and cross-border payment integrations are essential for neobanks aiming to operate globally and have international clients.
kyc & kyb orchestration
DashDevs experts help you to establish technological processes for verifying the identity of customers, both independent individuals and other businesses. This service is critical for ensuring that the neobank has a simplified customer onboarding process and complies with applicable legal regulations.
payment orchestration
This DashDevs service line involves ensuring that the neobank can manage various payment methods and channels, such as bank transfers, mobile payments, and digital wallets. Payment orchestration allows neobanks to offer their customers diverse and convenient payment options.
Product IDEA VALIDATION
DashDevs experts conduct research to confirm the viability of your product idea and its place in the market. We focus on validating critical assumptions, ensuring your product fulfills a crucial and urgent requirement for your target audience. This approach significantly enhances the likelihood of your product gaining traction in the market right upon launch.
MARKET ANALYSIS
By delving into market trends, industry dynamics, and market volume calculations, the PM assists you comprehend the workings of the industry, its potential for growth, and the opportunities that exist for your product. This stage facilitates grasping the current state of affairs within the sector and identifying pathways to position your product effectively.
COMPETITORS RESEARCH
Our team provides assistance in analyzing your competitors, focusing on their unique features, how they position themselves in the market, their target demographics, and other key aspects. This valuable insight will enable learning from their strengths and weaknesses, allowing you to enter the market with a more refined product, increasing your chances of success.
USER RESEARCH & PERSONA DEVELOPMENT
Through user research, we delve into understanding your business, identifying your user base, and discovering what they value the most. Persona development is a collaborative effort that ensures these personas are grounded in accurate data by identifying user characteristics from research.
requirements gathering & roadmap creation
e process of gathering requirements begins with interactive workshops that delve into your vision and objectives. Then, we communicate with users to understand their needs, meticulously document requirements, prioritize them, and construct a comprehensive project roadmap to guide the development journey.
Proof of concept creation
Creating a proof-of-concept (PoC) is a vital step in demonstrating the practicality of the solution you wish to develop. Development of PoC helps to check the technical aspects and provides potential investors with reliable proof of product progress and feasibility. PoC is a tool for ensuring the concept is technically sound and to identify any potential technical challenges.
prototyping
Our team creates a functional product prototype. It can be simple or complex as long as it demonstrates the core features effectively. This stage is critical for in-depth hypothesis testing and enhancements before dedicating extensive resources. Additionally, the prototype serves as a valuable asset for more effective fundraising.
product design
In this phase, we provide various design options tailored to your specific requirements, ranging from basic low-fidelity wireframes to detailed high-fidelity wireframes and customized design systems. We use data, not guesses, to make design choices, aiming to create a user-centric design that provides a great experience.
product architecture development
At DashDevs, we build a project foundation through product architecture development. Our flexible design supports growth and ensures long-term success. We prioritize efficiency, performance, and security, ensuring that the product operates smoothly even under substantial load. Partnering with us means your project is set on a path to success.
Fintech integrations for neobanks
Dashdevs has extensive experience acquired by integrating over 70 fintech providers for hundreds of our clients means we can assist you throughout the entire neobank product launch cycle, from vendor selection and development to going live.
neobank development
options
DashDevs offers several collaboration format, each suited to particular business models and project needs.
Custom product development
You can entrust your entire project to DashDevs’ team of expert fintech developers. We’ll handle the process completely on our side, with your minor involvement required. You don’t need to have an in-house team this way.
Best-fit option for non-tech businesses.- You get the best outcomes with the least amount of time and effort needed.
- Don’t require any technical expertise and experience.
- More cost-efficient compared to gathering and managing in-house team.
outstaffing development
You can request Dashdevs to provide you with the necessary development resources to complement your in-house team. This way, you’ll obtain our external expertise and experience, but you will need to handle management on your side.
Best-fit option for tech businesses with fintech development knowledge and an in-house team.- Cross-team expertise and external vision typically benefit the project.
- You can reduce worload on your in-house team and save on extra hires.
- Better flexibility and scalability for your business or main development project.
self-service development
You can utilize DashDevs’ unique proposition - a white-label source based modular fintech solution for the creation & fast launch of neobank. Our Fintech Core has an engine, an API, convenient front-ends, and a back-end. It supports integration with third-party apps and can be scaled.
Best-fit option for tech startups.- You don’t start from scratch
- It’s a budget-friendly option
- Requires less tech knowledge compared to own custom development
- Suitable for high quality yet fast launch development
Why choose DashDevs for neobank app development?
cutting-edge solution
DashDevs combines neobank niche-latest technology with our technical proficiency to bring your innovative vision to life. We focus on meeting the dynamic needs of the fintech industry and crafting competition-winning software products.
Own white label product
DashDevs has experience creating from the ground up and launching a neobank in only 9 months. Besides, we offer our unique white label solution - Fintech Core, that enables the fast building and launch of digital banks and other payment products.
Customer-oriented process
DashDevs emphasizes project accountability as well as a flexible, transparent, and customer-focused development process. We hold monthly meetings to review the development progress and provide detailed reports, keeping track of what’s been achieved.
Proven Fintech expertise
DashDevs has a solid 14-year presence in the market. We completed more than 80 fintech projects and helped dozens of customers experience 2x average revenue growth. We offer best-in-class technical help, expert execution, quick delivery, and ongoing support.
Our cases
steps in OUR NEOBANK DEVELOPMENT PROCESS
Discovery phase
In this stage, we evaluate the neobank app project’s general ideas, scope, terms, and competitiveness to lay the groundwork for success.
idea validation
Prior to initiating development, we critically assess the feasibility and potential of your particular neobanking app idea. Through market research, competitor analysis, and user persona creation, we ensure that your concept has the potential for success in the competitive neobank sector.
Gather requirements
We work closely with you to define and document the specific functionalities, features, and user interactions required for your digital banking product. By gaining a thorough understanding of your requirements, we lay a solid foundation for successful neobank development.
Wireframing
Our design team starts creating wireframes — the blueprints of your finance digital banking app. This visual representation of the user interface includes the placement of elements and navigational flow. This step is crucial, as it lays the groundwork for subsequent phases of design and development.
Infrastructure Architecture
Following the design phase, we focus on developing the infrastructure architecture for your neobank. We ensure that the backend systems, databases, and server configurations are scalable. This preparation helps to support anticipated user load and ensure optimal performance.
Estimation
We present a thorough estimation of the development timeline and associated costs. This transparent approach ensures that you have a comprehensive view of the resources required for your digital banking project.
Development phase
The main stage of neo banking software app development: Our team diligently crafts your product, meeting your unique requirements utilizing the selected technology stack to achieve the best possible outcomes.
MVP Building
In line with Agile methodologies, our approach to banking software development is iterative, allowing for continuous feedback, tweaks, and improvements. Our focus will not just be on functionality, but also on creating a seamless, intuitive user experience.
PoC Development
Proof of Concept (PoC) is developed to validate specific aspects of the neobank product, reducing risks and ensuring technical feasibility. This scaled-down version of development helps ensure that the chosen approach and technologies align with your project requirements.
Delivery phase
At the final stage of neobank app development, we test the product and deploy it to production. Post-deployment, we offer ongoing support and maintenance.
Testing process
QA is paramount, and through a testing process, we ensure that every aspect of your banking software functions as intended. Our rigorous approach encompasses everything from unit testing to user acceptance testing. We identify and fix any issues, guaranteeing a smooth end product.
Continuous maintenance
Post-launch, we remain committed to your global digital bank’s success. Our continuous maintenance services ensure that your neobank application is always up-to-date, secure, and performing optimally, adapting to user feedback and evolving market demands.
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Faq
What does the Neo bank stand for?
Neo banks represent a new wave of digital-only financial institutions, offering core banking services such as account management, payments, and lending, primarily through mobile apps or websites, without the physical presence of traditional bank branches. They focus on convenience, lower fees, and enhanced customer experience.What is the difference between neobank and virtual bank?
The difference between neobanks and virtual banks lies in their focus and affiliation. Neobanks are typically standalone, digital-first entities emphasizing user-friendly interfaces and innovative financial services. In contrast, virtual banks often operate as online-only subsidiaries of existing traditional banks, offering a wider range of conventional banking services digitally.How do I create a neo banking app?
To create a neo banking app, you must conduct thorough market research to identify customer needs, secure a banking license or partner with a licensed institution, develop a user-friendly and secure mobile application, integrate advanced financial technologies like AI for personalized services, and ensure strict adherence to financial regulations and security standards.Can I start a neobank?
Starting a neobank is a complex process requiring a significant financial investment, a deep understanding of financial regulations and compliance, a robust technology infrastructure to support digital banking services, and a solid business model to ensure sustainability and growth in a competitive market. Partnering with a trusted tech provider can significally simplify this venture.Is neobank profitable?
Yes, neobanks have the high potential to be profitable through their lower operational costs compared to traditional banks, offering targeted financial products, charging fees for premium services, and leveraging advanced data analytics for personalized customer offerings.
