Online banks or neobanks are slowly taking over traditional banks. As they offer quick service, there is no need to visit a bank or go through a long, complicated procedure. Hence, there are many new-age entrepreneurs who want to develop a neobank and capture the market. So the question is, how to start a neobank?
Well, developing a neobank from scratch can be extremely complicated. You need to deal with financial service, take care of the security, etc.
However, to help you out, I am here to explain all the steps. So here we go:
How To Start A Neobank – 5 Thing You Need To Know
1. Start With Neobank Core
One of the main components that you will need for your neobank is its backend. So the first thing you should do is start working on the neobank core.
When it comes to building the backend, there are a couple of backend applications you have to create. For instance, you will need a card processing module, back-office tools, payment tools, APIs, and so on.
For instance, the API will help your app connect with external services. As well as it will help apps from multiple devices communicate with each other.
The payment processing module will be required for accepting credit or debit card payments. You will also need modules for database management, email notification, popup notification, and so on.
2. Build Front End Of Your App
You will then need to start working on the front end of your app. The front end is where your customers are going to interact with your app and your services. So make sure it is user-friendly and you are keeping unwanted features away from it.
On the front end, you will need to include certain features like accounts, transactions history, payments, budgeting, investments, credit/debit card, loans, customer support, and anything that fits your product.
3. Secure Your Neobank
Before you open a neobank for the public to use, you need to ensure that your app is secure. So your app needs to go through different security procedures.
Along with that, you will also have to develop multiple security tools like multi-layer security and combine your app with custom-built solutions and tools from trusted vendors.
You can also consider using machine learning algorithms to track your app performance and user behavior. So in case, there is something suspicious going on with your neobank, you will be able to take care of it.
5. Test Your Neobank
When you build a neobank, you need to make sure that no bugs exist on your app. So the end-users can enjoy a smoother experience, and the app can run in a smoother way.
To ensure this, you will need to make your app go through software testing. So if you don’t really have a software tester team, then it would be a good idea to hire one.
Under software testing, you can perform several tests to understand how well your app is performing. Such as unit testing, which lets you know about the performance of your app.
Similarly, you can run other tests to understand how your app is integrating with other IT solutions. You need to perform security testing, regression testing, and more.
These tests will help you to understand how well your app is performing and how secure it is. So in case, there is any bug, you will be able to fix it before launching your app.
So that was the answer to your how-to start a neobank question. Without any doubt developing a neobank from scratch is extremely hard. So if you don’t really have a team of developers, then you should definitely seek help from a software development team.