Neobanks • Windmill


Windmill Editorial Team
  • Financial Services

Introduction to Neobanks

Neobanks are 100% digital banks that serve to support their customers with a limited amount, if any, physical branches.

All products, services, and customer services of a Neobank (commonly called Challenger Banks) are provided digitally in their application. To open a bank account and receive money, you do not even need to leave your house – a laptop or a mobile phone will suffice.

Today, there are more than 200 Neobanks worldwide, growing each year.

What separates top Neobanks from traditional banks?

If we compare Neobanks with everyday brick-and-mortar banks, the main difference is that they solely provide online customer service – all operations and support taking place digitally.

If we compare the many different brands of Neobanks, then the best ones will be those that focus on the following things:

  • High-quality and convenient mobile and web applications. Since all interactions are happening within the application, the best bank service will be the one with an easy-to-use user experience with regular updates and improvements

  • Secure and affordable conditions for deposits and loans. Neobanks can offer products that a traditional bank cannot at more affordable prices due to the lack of physical branches and low staff numbers, so lower pricing to competitors is a huge plus.

  • 24/7 responsive support. When it comes to banking, it is imperative to get support quickly. A Neobank that prioritizes its online support will be highly valuable than those that do not.

How UX can decide if a Neobank sinks or swims

For any product, the user experience should be a priority, especially if it is a solely digital product. Here are some things to keep in mind when designing a Neobank app:

  • Ensure a quick, smooth, and secure login

  • Make the navigation clear and intuitive

  • Don’t bury the balance

  • Ensure money transfers are effortless

  • Provide clear feedback after payments

  • Security First: Make it quick and easy to freeze cards

  • Do not overload the dashboard with unnecessary information

  • Be there for your users with accessible support

  • Make it easy to view and copy credit card details

Moreover, Neobanks are a glimpse into the future of banking for the everyday person. When designing them, it is imperative to prioritize user convenience and security.

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