The popularity of neobanks in Europe is growing: they personalize interfaces, address more user tasks, rapidly develop, and consistently lead in customer experience. All these factors attract digital users who want to fully manage their finances through their smartphones.
To stand out and increase user activity, a fintech app must go beyond merely matching the competition. It needs to offer unique features and values that provide a new or significantly improved user experience.
What features? We sought to answer this question for one of our clients—a microfinance holding launching a Spanish neobank. Based on market best practices and audience insights, our researchers designed a highly competitive financial app.
We gathered and described over 140 best implementations, which will help the client develop a financial service capable of competing with European neobanks. Here are examples of what a financial product should offer to provide a qualitatively new experience for digital users in Spain.
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To understand what makes a successful fintech app in the Spanish market, we thoroughly studied the mobile apps and personal accounts of 11 neobanks operating in the country. This provided us with a detailed understanding of the structure of fintech services, identifying barriers in the customer experience and uncovering best practices.
For each service, we analyzed the account setup process, card issuance, access acquisition, and onboarding. We also performed all available operations to create a working environment from the product owner's perspective. Additional sources of information included official websites, call centers, and banks' online chats.
Agents helped us see the interfaces firsthand and test all interaction mechanisms of the applications with users. These agents, Spanish citizens, opened accounts in the banks at our request and provided Markswebb researchers with access to personal accounts and applications.
The study participants were selected jointly with the client based on their understanding of potential competitors and market leaders.
Most neobanks follow a mobile-first strategy, preferring to attract users through applications. These apps implement remote identification of new clients via the KYC (Know Your Customer) procedure. However, there are two main issues associated with the mobile channel at the start.
An example is an app that guides users on how to position their face in the frame and takes the photo automatically at the right moment.
Credit products are in high demand, and most neobanks try to attract new clients by offering favorable loan terms. Making the process of acquiring the simplest, most profitable, and in-demand product as convenient and easy as possible is essential for converting users into clients.
However, in Spain, loans are often processed via callback requests, so a fully digital process can be a significant advantage. Key growth areas in online lending include organizing the application process and transparent communication of product benefits.
A well-designed loan application should keep the client engaged. A user-friendly application form with tips and predictive input saves time, and clear steps with support at each stage help complete the process. It should be easy for the client to return to a saved application without re-entering information.
An app example reminds users of an abandoned application with saved data, making it convenient to continue filling it out at any time.
Spanish neobanks differ from traditional ones in that their transfer and payment functions are very unevenly implemented. Some apps only offer internal transfers, while transfers to clients of other banks are often managed through external links that require entering payment details. Payments are typically made via direct debit, where the client provides an account number, and the service provider withdraws the money.
At the time of research, none of the apps offered full transfers by card number, which significantly limits user capabilities.
Offering transfers through a unified form attracts clients who want to use neobanks as a payment tool. There are two main transfer methods in Spain: by IBAN (International Bank Account Number) and through Bizum, the Spanish equivalent of the Faster Payments System. Only a few banks support both methods simultaneously, which is a competitive advantage.
Five apps allow users to change transaction categories for expense analysis and group operations by categories. Three apps support linking other bank accounts and tracking expenses, while only two neobanks allow users to create and monitor budgets.
Having convenient and flexible PFM (Personal Finance Management) functions increases user transactional activity. It's essential to provide the ability to analyze expenses on external accounts, set financial goals and budgets. Clear graphs and charts help users understand their financial dynamics.
An app example shows a balance change graph as users scroll through the transaction history.
Despite neobanks primarily offering an online experience, users still need to withdraw cash from ATMs or meet with a bank manager. At the time of research, all apps helped quickly find the nearest ATM, but many lacked a convenient branch locator, missing information on operating hours, contact numbers, and available services.
An informative branch locator and appointment scheduling feature provide a valuable phygital experience. It's convenient for clients to schedule appointments with managers in the app if they can assess branch workload, operating hours, and the list of issues that can be resolved.
An app example allows users to find the nearest branch and schedule an appointment with a manager immediately.
When support is needed, some banks offer clients the option to call by phone or through a messenger, which is convenient when the user is roaming. Most apps have a chat feature, and advanced banks turn traditional FAQs into chatbot interactions. The chatbot acts as an interactive guide, asking clarifying questions and providing quick answers or links.
Clients prefer services that offer convenient communication options. In different situations, a client may want to call or text - the app should accommodate various options. If the user prefers to communicate in an embedded chat, it should offer an experience similar to familiar messengers: displaying avatars, operator names, and supporting emojis. An app example allows users to dictate messages by voice, a common feature in messaging apps.
This case study demonstrates the strategic approach to launching a neobank in a competitive market by leveraging best practices from leading neobanks. By focusing on seamless account opening, fully remote loan processes, convenient transfers, robust expense analysis, easy access to physical banking services, and advanced customer support, the new neobank is well-positioned to attract and retain users, providing a comprehensive and superior digital banking experience.
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Every year we conduct up to 15 studies of digital services. These are industry benchmarks that reflect the state of the market and trends.