How to Become a Neobank in 2022
Neobanks offer capabilities that traditional institutions, capital-infused startups, and large enterprises should note, from utilizing fewer resources than conventional counterparts by eradicating all physical aspects to using AI to facilitate customer communications. Additionally, considering how much mobile banking has grown in recent years, with more people preferring to conduct transactions and receive financial products on their smartphones, neobanks can serve companies and customers in agile ways. The conveniences that a white-label digital bank offers make it an attractive alternative and are the reason why the digital banking platform market continues to enjoy exponential growth.
Credit unions, payment providers, or forex exchange specialists — adopting a neobank adds much-needed flexibility for everyone when providing services to target groups demanding personalized services. After withstanding slowdowns during the early stages of the pandemic, neobanking is evolving and thriving thanks to its adaptability to unique consumer needs. If you’re intrigued by the possibilities a digital banking solution offers and seek to become a neobank in 2022, here are some essential tips to consider on how you can monetize your consumer base before deploying your solution.
Creating a White-Label Neobank Platform Foundation
To develop a neobank, you need to properly sort out the back-end infrastructure for seamless integration.
Neobanks rely heavily on application programming interfaces (APIs) in conjunction with a reliable card processing application and various back-office tools. APIs allow you to connect your services to software, including payment gateways and authentication modules. With back-office tools, you can successfully manage and integrate your white-label neobank, constantly updating and making tweaks to stay on top of critical trends. The API is your main contact point with customers and should be an indispensable aspect of your digital banking solution, leveraging various features such as:
- Credit card issuing
- Bank accounts issuing
- International Money Transfers
- Know Your Customer (KYC) and Anti-Money Laundering (AML)
- Customer Service Modules
- Fraud prevention tools
- Compliance Modules
- Banking or EMI licences
- PCI DSS Compliance
- GDPR Compliance
By establishing the proper parameters to create a white-label neobank platform, you create something with multiple use cases that different types of financial institutions can successfully execute. You benefit from becoming a neobank because you control the design, implementation, and development phases while also expanding your digital banking solution gradually, paying for any new features with something generating positive momentum.
Neobanks Help All Who Adopt Them Become Data-Driven
Any financial institution that transitions into a neobank or adopts a digital banking solution benefits from making data-driven decisions that help them improve their customer relations and personalize the customer experience for everyone. A white-label digital bank provides customized solutions, whether multicurrency accounts, free money transfers, and instant microloans, leveraging data to create customer-oriented services directly addressing each customer’s most significant concerns.
Neobanks are based on decision-making models, constantly collecting data and analyzing all of the customer data patterns they discover to understand customer behavior and determine the best approach to each offered service. And, a white-label neobank rolls out features faster than its traditional counterpart because of its heavy reliance on data and real-time analysis, making it easier for credit unions to approve customer-friendly loan rates and forex exchanges to convert currencies or provide financial tools that allow them to hold different currencies at once.
Additionally, thanks to how data-driven a digital banking platform is, financial institutions develop quicker reporting capabilities, offering updated account information and the savviest financial advisory services to help customers make educated financial decisions.
And all financial services afforded to customers through a digital banking platform are synchronized in live time, including deposits, withdrawals, and bank transfers. Customers get a daily overview of their finances with customizable, easy-to-use interfaces that enhance viewability.
The Other Benefits of Becoming a Neobank
Neobanks have faster processing times than traditional financial institutions do, approving loans and money transfers seamlessly, allowing various institutions to further digitize their transactions and putting more control in the hands of their customers. Whenever a customer applies for a loan in a traditional bank, they must go through time-consuming and rigid processes. By adopting a digital banking platform, institutions can help customers pre-qualify for loans within minutes and gain early approvals for interest rates, adding to the personalization that neobanks strive for.
A white-label digital bank also leverages many advanced security features so customers can conduct all of their transactions without worrying about potential hacks. Any quality white-label neobank must feature passwordless solutions like two-factor authentication, top-tier encryption technology, and role-based access control to put users at ease every time they conduct online banking transactions.
Learn how our blockchain-based solutions can improve how your financial institution, large enterprise, or capital-infused startup conducts daily business, giving your a digital banking platform that satisfies different customer expectations and helps you monetize your growing consumer base. Contact Optherium Labs today and find out more details about our white-label neobank service to help you successfully launch your banking and fintech solution.
