Neobanks are rapidly gaining popularity and their role in the financial sector is becoming increasingly important. Startups and fintech companies are choosing neobank platforms to promote their innovative financial products.
Small and medium-sized businesses find in them reliable tools for financial management. Large enterprises use neobanking solutions to monetize data and develop new business models.
The banking services we are used to are changed by Neobanks. The question remains: are we ready for this new era? Experts from Kindgeek fintech software development company , will help us find answers.
Neobanks: A revolution in banking
The most sought-after services offered by digital banks to the average user include transactions such as buying, selling, and lending. The advantage of digital banking over traditional services is the elimination of the need to visit also traditional for the banking sector physical branches. For businesses, these digital platforms act as a bridge, narrowing the gap between entrepreneurs and their customers. Since neobanks attract customers with convenience, low fees and fast service, businesses are attracted by the opportunity to establish a connection at a new level of trust and comfort with the target audience.
Imagine you are an aspiring entrepreneur exploring the possibilities of neobanking. While you are busy developing a forward-thinking strategy, neobanks already offer you a number of tactical advantages. This is relevant for both e-commerce businesses and investment projects. Here are some of benefits.
● Flexibility and scalability
Adaptability is the mast haves of what small and medium-sized businesses need. Neobanks give them the ability to quickly respond to changes in the market to expand and add new product-service positions. For the record: one neobank solution can be effectively used to manage multiple online stores.
● Integration with business processes
Thanks to their modular architecture, neobanking platforms can be easily integrated with existing business systems, enabling seamless operation and improved user experience. For example, a neobanking system can be integrated with a company’s CRM system to automate customer accounting processes and financial transactions, simplifying customer relationship management and improving customer satisfaction.
● Access to advanced technologies
Blockchain, artificial intelligence, big data and algorithms open new horizons for fintech solutions. They allow businesses to offer innovative products and services to customers.For instance, blockchain-based smart contracts provide security and transparency of document flow. Artificial intelligence is used to personalize financial services and automate customer service. Algorithms help large businesses manage assets, optimizing trading strategies and investment portfolios.
● Reduced operating costs
The absence of physical branches allows banks to save on rent and maintenance costs. It also helps to streamline processes such as customer service, transaction processing, risk management, marketing, and data analytics. As a result, operational costs are significantly reduced.
● Quick access to financial services
Fintech companies offer customers instant access to a variety of financial services. Among the most popular are money transfers, payments, lending, and insurance. Exotic services such as cryptocurrency platforms to buy, sell and store cryptocurrency, social trading platforms to learn from successful traders, and investments in collectibles or reputation-based financing are growing in popularity.
This is by no means a complete list of financial services that non-banking platforms can offer. Companies specializing in fintech software development, like Kindgeek, are making neobanking technology accessible and attractive to businesses of all sizes looking to innovate and improve efficiency.
White labeling: The path to innovation
White labeling is when a company provides its services under the brand of another company. For neo-banks, this allows them to quickly launch their own products using off-the-shelf solutions, such as those from Kind Geek.
Examples of successful neobanks:
- HyperJar (UK): A fintech platform that offers users a network of mini-accounts, each customized to the user’s plans, lifestyle, and relationships. All mini-accounts are connected to one smart payment card.
- JaJa Finance (UK): A banking app that offers customers a digital credit card with a simple and straightforward credit management system.
- Revolut: It is a global finance app that offers users the ability to send and receive money, store up to 36 currencies in the app, spend in over 150 currencies and manage their finances. Perks include: cashback on purchases, the ability to open joint accounts and offers different cards depending on the plan chosen.
- N26: It is a fully digital bank that offers simple and flexible financial products such as overdrafts, loans, insurance and installments. Customers can get a free Mastercard in just a few minutes.
- Monzo: A digital bank that allows you to manage all your bank accounts and expenses through a single window. Monzo offers instant spending alerts, automatic categorization of spending and tools to manage savings. In addition, Monzo does not charge foreign transaction fees, overdraft fees or monthly maintenance fees.
The first two we examples borrowed t from Kindgeek, yet all the cases demonstrate the ability of fintech apps to pinpoint solutions to both global business problems and personal financial management challenges.
Accelerating your startup: From idea to realization
Successful business ideas are often born out of personal experience. Such was the case with Stripe, a company founded as a result of a search for a solution to a personal problem. Its founders, the Collison brothers, faced a challenge: standard payment systems were too complicated to integrate. They decided to simplify the process and, based on their own experience, developed the platform Stripe. Today, it provides services to thousands of companies around the world, offering software and APIs for processing online payments.
1) Developing a Unique Product Proposition
Developing a unique product offer starts with analyzing the target audience and competitors. Inspiration is followed by the painstaking work of implementing it. This includes finding key insights to understand the needs of the audience and the ways in which competitors fulfill those needs. The process of analyzing trends and customer needs will lead to the creation of your unique product offering that will meet consumer needs and outperform competitors’ offerings.
2) Product Design
The next step is to design the interface and functionality of the product. A thoughtful design in terms of previous user experience, which shapes their expectations; and your innovative solution to old user problems, increases the chances of attracting and retaining customers. Ever-changing market demands require a design that can be easily and quickly adapted. Fintech app development companies, the highest-profile of which includes Kind Geek, are adopting Design Thinking and Agile approaches to create adaptive designs. They use Design Thinking and Agile methods to create adaptive designs. Engineers also use prototyping and iterative testing to improve the product, and modular design systems make it easy to make changes and add new features.
3) Testing stage
Development and testing are the next two steps that ensure the reliability and security of the product. Advanced technologies such as cloud, browser-based or on-premises solutions increase the efficiency and scalability of the product. And testing helps identify and eliminate bugs before launch, reducing risks to the business and end users.
4) Launch day
A product launch is an exciting day, by which time you better have a clear marketing strategy to promote your product and responsive customer support. This is where the business begins. Feedback will help you eliminate bugs and users will feel their importance to you. In this way, you will create a positive experience that should lead to product distribution.
As a conclusion: Role of Fintech companies
Fintech companies play a crucial role in all stages of fintech product development. From the initial idea to its substantive realization, software developers offer their expertise and innovative solutions. This is especially true for neobanks, where there is no room for mediocrity — only the best solutions thrive. Another compelling argument in favor of these companies is that they grant access to cutting-edge technologies and knowledge, significantly expediting the development and launch process, ultimately reducing time to market.
So, the white label opens the door for neobanks to innovate and accelerate product launches. Consider Kind Geek offers great opportunities in this area, and exploring their offerings can be the first step to success in the world of digital financial services.
Read more:
White Label for Neobanks: How to Accelerate the Launch of Digital Banking Products