4 Reasons to Develop a neobank from Scratch

In today’s time, neobanks are pretty popular. Thanks to their online banking services and quick banking features, people now prefer them instead of the traditional banks. Hence, many entrepreneurs want to build a neobank and capture the financial market.

If you wish to do the same, then you must be wondering about how to start a neobank. But before I talk about that, let’s talk about a few reasons why you should be Develop a neobank from Scratch.

So let’s  get into the topic right away:

4 reasons to build a neobank from scratch

Custom Features

Every bank offers unique features to its customers. This is what sets a bank apart from the crowd. And when you are building a neobank, it is obvious that you are going to need custom features.

Unfortunately, premade neobank solutions may not come with the features you will need. Instead, they come with generic features that apply to all the neobanks.

As a result, if you want to have your own features and offer services to your customers in a unique way, then you must develop a neobank from scratch.

By doing so, you will enjoy the freedom of having as many features as you want. Also, you can shape up the neobank the way you wish instead of using ready-made templates or features.

Scalability

Your neobank platform is going to need improvements from time to time. For instance, as you start your neobank, you will start offering different features. And for that, you may have to use newer technologies.

But when you choose a premade solution, the option of adding additional features or technology is very limited. As a result, you may not be able to offer all the banking features that you are planning.

This is where building your neobank from scratch can be a good idea as it gives you the option of scalability.

You will have the freedom to add additional features over time, change its UI look, add newer technologies, and more. All you will need to do is make changes to the source code and implement it.

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Cost-Effective

Building a neobank from scratch can also be cost-effective. However, it is going to cost a lot at the beginning. But if you compare it with the premade solutions, then most of them come with a license and subscriptions.

These subscriptions need to be renewed each year. As a result, in the long run, you will end up paying a lot more.

But when you consider developing a neobank from scratch, you can cut down the yearly recurring charges.

You will only be spending money to build the platform once. Once the platform is ready, you will only have to pay to maintain it. Or when you need newer features.

Security Solutions

Without any doubt, online banking is a risky business. To protect your neobank, you need to implement strong security solutions. So your bank and the customers can have a safe and secured experience.

But when you go with a premade neobank solution, you don’t really get good security features with it. As a result, your business is always at a risk of getting hacked or breached.

However, the same doesn’t go with custom-built software. With a custom-built neobank, you can implement different security features. For instance, you can implement machine learning technologies to detect weird activities or patterns.

Besides, when you build custom software, you have full control over your software which is not the case with a premade solution.

Final Words:

So those were a few reasons why you should build a neobank from scratch. To start building your neobank, you can Google how to start a neo bank, and you will get lots of handfuls of guides. Also, if there is any question you have regarding how to open a neobank, do comment below.