Best neobanks build digital-first and mobile-first services focused on refined UX, new customer acquisition models, and monetization strategies. Innovations from digital banks are indicators of global fintech trends and essential sources of new product ideas for companies striving to offer unique implementations and the best customer experience.
Last year, a major bank, one of the digital leaders in the market, commissioned Markswebb to study foreign best neobanks. The project's goal was to identify implementations that would help the bank stand out from common market solutions through new technologies or unconventional approaches.
We developed criteria for identifying unique practices, studied 27 applications from 10 countries, and highlighted over 120 advanced solutions for individuals and small businesses. We assessed the readiness of all findings for implementation in the client's application and provided them to the product team to enrich their backlog.
From all the solutions found, we selected a few practices for this article that can expand the boundaries of conventional product thinking.
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Markswebb helps clients find the best interface solutions implemented by companies across various industries and countries. Learn how we search for practices, assess their benefits, and assist in integrating them into the product strategy of a service on a dedicated page.
In this case, the search for practices was conducted in four stages:
1. Access to 27 neobank applications from 10 countries We found agents in each country who opened accounts and issued bank cards, recording the entire process from start to finish. The obtained access details were given to Markswebb researchers for the duration of the study.
2. Simulating a working environment and studying scenarios In each neobank, researchers topped up accounts, made payments and transfers, and paid for services, generating data and studying interfaces.
3. Solving tasks and identifying best practices The search perimeter included five high-level tasks: opening an account for new clients, payments and transfers, analyzing the use of existing products, connecting new products, and obtaining customer support.
As tasks were solved, all interesting and unconventional practices were documented. These were identified based on the following criteria:
4. Assessing the benefits of each finding for the bank’s service We separately determined how the bank currently addresses similar tasks and noted which neobank implementations could expand functionality and improve the existing customer experience. Descriptions of all practices, along with their usefulness assessments, were provided to the bank's product team to enrich their backlog.
As a result, a unified registry of best practices covering all studied neobanks was created: 74 practices for retail and 53 practices for SMBs. Comparing these with the client’s service helped objectively understand which tasks the customer experience meets or even exceeds the level of foreign digital banks, and which areas require improvements in convenience and digitalization.
To help a large bank stand out from competitors by leveraging innovative features and approaches from best neobanks. The project aimed to identify advanced solutions that enhance user experience and provide unique features for both individuals and small businesses.
Exploring neobanks, we are ready to answer questions such as:
How do Chime, Revolut, Monzo, Starling, and Varo succeed as neobanks? What are the benefits of integrating digital banking services from successful neobanks? How can a traditional bank leverage mobile apps and online-only banking products? What are the key elements of fee-free transactions in digital banking? How do higher interest rates on savings accounts attract customers? What are the best practices for convenient checking account management? Why are debit cards and direct deposit options important for modern banking? How can crypto transactions be included in a comprehensive financial services offering? What innovative features from neobanks can enhance user experience for a large bank? How do best neobanks provide unique features for individuals and small businesses?
The objective was to combine the best practices of fintech innovations with traditional banking strengths to meet the diverse needs of customers in 2023 and beyond.
Objective: lowers entry barriers, strengthens positioning, increases average revenue per user (ARPU).
Neobanks focus on providing high-quality services that sell themselves by allowing clients to try out features first to understand their benefits. This approach enables onboarding into products and showcases all the advantages of digital services, which helps transition users to paid plans or earn through cross-sales.
For instance, with a free basic plan, the Bunq app offers new users 30 days to use paid subscription features. The service informs users that there are no obligations, and when the trial period is about to expire, the app will offer to pay for the subscription or switch to the free plan.
Basic free services and trial periods are also offered by local banks. However, the practice of temporary access to more expensive services or advanced plans could be a novelty: it can introduce users to extended cashback categories, travel insurance, higher limits, etc. Some users may want to continue using these services and will pay for the subscription.
Additionally, most neobanks advertise unconditional fee-free transfers and payments. This positioning is used to highlight the difference between digital services and traditional banks, which require certain conditions for free basic services. This creates additional motivation to try the app.
The ability to not worry about conversion fees attracts mobile clients - entrepreneurs and avid travelers who spend a significant amount of time on the go, making purchases with cards or exchanging currencies via mobile banking. This approach is still practiced by only a few banks in the local market, giving others an opportunity to add this offering to their positioning.
Objective: simplifies payments and transfers, increases daily active users (DAU).
Neobanks actively utilize built-in mobile platform features: logging in with Apple ID and Google ID, and using built-in voice interfaces like Apple Siri and Google Assistant. These solutions provide access to banking services directly from the smartphone's home screen without the need to log in.
For example, Bunq allows setting up Siri commands to top up accounts using voice commands without logging into the app. This simplifies account access and makes checking balances, transfers between accounts, regular payments, and transfers more convenient.
Biometrics in smartphones also help simplify everyday processes. For example, logging into the app without authentication if the client has just unlocked their smartphone. This solution provides quick access to financial information without overloading the login process and without compromising security. Such implementations are not yet available in the local market, offering an opportunity to be the first to offer these features to clients.
Objective: user activation, retention of account balances.
Neobanks emphasize automation and simplification of group actions, offering services for splitting purchases, crowdfunding links, integrated Apple Pay and Google Pay, and joint accounts. One of the most advanced solutions is temporary groups, which can be formed for a shared trip or a crowdfunding project.
Bunq's "Slice Group" function works this way. It is essentially a virtual storage for information about transactions made by different clients within a group. Participants mark transactions within the group, such as during a trip, and the app shows who spent how much and who needs to transfer money to whom.
Another variation of group functions is shared savings accounts. In the Monobank app, there is a "Bank's" savings account that clients can join and save money together. Users see this account as "guest," can contribute, track savings and each participant's contribution, but only the account owner can withdraw or spend the money.
Objective: reduces first-line support workload, saves on client service, builds self-service support.
Another distinctive feature of best neobanks is the absence of full-fledged client support: most tasks are automated or resolved by users themselves. A significant focus is on community support, where users answer client questions on forums, replacing the first line of support.
Self-resolution of simple issues is also facilitated by developing knowledge bases: these are combined with forums and presented in the form of cards or video tutorials. Some banks, like Revolut Business, position referring to the FAQ section as the first step in resolving client issues independently.
Some neobanks also automate first-line support using text bots. However, text bots in European apps are still relatively rare.
Objective: increases account opening conversion, creates a fully remote process.
A full online account opening experience is a hallmark of neobanks. Apps do their utmost to optimize the client journey and reduce routine during registration. Many use open banking interfaces to quickly handle identification and data entry tasks through external services.
For instance, to simplify client identification, Revolut and Bunq apps integrate with the trusted identity verification service Onfido. To complete identification, the user must look into the camera, turn their head, and say a specific series of numbers—combining facial recognition with voice identification. Before identification, users are shown a video explaining how to hold the smartphone correctly during filming, how to act on camera, and so on.
Objective: user activation, retention of account balances.
The more convenient PFM (Personal Financial Management) functions are, the more likely users are to choose the app as their primary financial activity tool. Therefore, many neobanks allow linking external bank accounts and wallets to the app, clearly showing spending dynamics and helping manage regular payments and subscriptions.
For example, several neobanks in Europe and the USA position the recognition of external subscriptions as a key feature. Based on transaction history, the bank recognizes regular payments with identical amounts, matches them with its database of external services, and categorizes them as "Subscriptions." This way, the client sees which subscriptions are active and their share of expenses, allowing them to block these transactions if the financial burden is too high.
To enhance financial analysis convenience, apps offer linking accounts from other banks to receive information on expenses and income from all cards. All expenditures are automatically categorized, giving the client a comprehensive view of all activities and enabling them to consciously control their spending.
Neobanks, operating in highly competitive environments, are compelled to take creative approaches to positioning and pricing, continuously optimize their processes, and seek new technological niches not yet occupied by other market players. Studying their experience helps go beyond conventional product thinking, discover new monetization models and problem-solving methods, and find implementations that help overcome technical or regulatory market constraints.
Researching neobank practices can also serve as the first step in developing an entirely new product.
This case study demonstrates the effective use of best practices search methodology to enhance the features and user experience of a banking app. By studying best neobanks and digital banks across different countries, the project identified innovative solutions that significantly improved the bank's digital offering, making it a market leader in user experience and customer satisfaction.
Every year we conduct up to 15 studies of digital services. These are industry benchmarks that reflect the state of the market and trends.