Neobanks or digital-only banks are in trend these days. They offer you a wide range of banking services. Plus, there is no need to visit a physical branch at all for anything. Also, this brought a new industry with it, which many entrepreneurs want to get into. So the question is, how to start a Neobank?
Starting a Neobank can be a challenging task. Also, if you are not really aware of what steps you have to take, then the journey can be challenging. But not to worry, as in this article, I will be decoding the process to build a neobank.
So here we go:
How to start a Neobank?
1. Develop backend.
One of the first steps to build a Neobank is to have the backend ready. The backend is definitely one of the most challenging things to build as it is going to handle all the operations.
Your backend system will also require certain things like a core API, a card processing app, several back-office tools, and more.
The API will help you to connect your app to other services, authenticating modules or payment gateways, and so on. Also, you will need card processing apps to confirm transactions and other operations.
Along with that, you have to build back-office tools that will be responsible for managing your Neobank platform completely.
2. Develop frontend.
The next thing you will need is the frontend. Since Neobanks are digital-only banks, you will need to provide your users something to interact with your service.
The user interface should be crafted well and well optimized so it can deliver the best experience to your users. Also, a frontend will have multiple views. For instance, accounts, credit/debit card info, transaction history, investment portfolio, and more.
Plus, the frontend should be connected with the backend. So it will fetch data from the backend and show it to the users.
3. Neobank security.
Security is also one of the essential parts of your Neobank before you open a Neobank for the public to use. You need to make sure that your platform is highly secure. And for this, you will need to have multi-layer security combining custom-built solutions and tools in place. For instance, there are tools that can protect your Neobank from hacking, data theft, and fraud.
Along with that, you can also consider building machine learning security alarms. As you already know, machine learning algorithms can analyze huge amounts of data and find patterns. So tracking any suspicious activity would become much easier.
Moreover, you will also need to focus on developing a number of authentication tools to safeguard your digital-only bank against password theft, hacking and other threats.
Lastly, you need to test your app before you launch your own Neobank. You will need to run a wide range of tests just to be sure that everything is in its place.
For instance, user acceptance and unit testing would help you to understand the performance of your app. Along with that, it will help you to validate the user experience.
You also need to perform integration testing, which will allow you to understand if your app can integrate with other apps or not. You also have to perform several security tests, regression testing, and more.
So that was all about how to start a neobank. I hope this has helped you with every information you need to know about. In case there is anything else you want to ask about how to start a neo bank, please feel free to comment below, and I will answer it.