How much does it cost to build a Neobank?

Sudeep Srivastava January 5, 2024
neobank app development cost

According to the analysts at Gartner, 30% of high-revenue banks will launch BaaS (Banking As a Service), such as neobanks, to generate a new income stream by the end of 2024. Considering a well-known notion that more than 80% of the traditional banking services will become obsolete in the coming decade, an active digital transformation of the banking industry is the need of the hour.

The recent round of funding for the latest Neobanks has further skyrocketed our belief in its success. For instance, a UK-based Neobank, namely Zopa, has recently raised $93M in its latest round of funding and now has a $1B+ valuation.

As per the latest reports from Grand View Research, the global market for neobanking was valued at $66.82 billion in 2022 and is expected to witness a CAGR of 54.8% from 2023 to 2030. Thus, now is the right time to dive into the neo banking sector and accelerate your business growth by empowering your customers to make better financial decisions digitally.

US neo banking market

If you too seek to cater to the distinct banking requirements of a custom user base and seek to acquire knowledge on developing a neo bank tailored to their needs, this blog will provide  a comprehensive run-down of the neobank app development cost and everything you need to make it successful.

To give you a rough idea, the cost to build a neobank app varies between $40,000 to $250,000. Before moving straight ahead to the costing and the factors that can affect the Neobank app development, let us first briefly understand what Neobanks are and how they work.

So without further ado, let’s start from the beginning.

Neobanks are Fintech organizations that offer standard commercial banking services digitally to their user base. Unlike traditional banks, neobanks do not have physical bank branches or locations, and a few are not licensed as banks.

This banking concept operates solely through mobile apps and software. Despite this, it offers a wide range of financial services, including deposit, withdrawal, loan, investment, and more, similar to those offered by conventional banks. Their centralized and streamlined operational process provides customers with a convenient and efficient digital banking experience.

[Also Read: How Banking-as-a-Service is enabling financial inclusion for non-bank companies]

Get exact cost to develop a neobank app

Understanding the neobank app development cost

As noted earlier, the neobank app development cost varies between $40,000 to $250,000. Further factors impact the cost of development, such as the hourly rate of development, the features to be integrated into the app, the technologies to be used, the UI/UX design of the app, the underlying app platform, etc.

Even though there are several factors that can impact your app development budget, it is recommended to hire a dedicated Neobank solutions development company that can help you put things into perspective.

Let us now try and offer you a clear-cut formula that can help you get exact estimates of your app development costs as per the hired organization.

Neobank app development cost=  Total development hours x hourly rate of development

The total development hours mentioned in the formula is the net time frame required to complete the app’s development process, which includes designing the wireframe, the UI/UX design, writing the code, quality assurance, deployment, etc. On the other hand, the hourly rate of development can vary as per the location of the hired Neobank development company.

[Also Read: How Much Does It Cost to Build a Mobile Banking App Like N26?]

Factors affecting the Neobank app development cost

It is necessary to understand the features and technologies that will be used to implement will directly impact the cost of building a neobank. Furthermore, hiring a dedicated app development team with similar expertise in offering neobank development services can help you attain maximum ROI and greater market traction.

Factors affecting the neobank development cost

1. App complexity

The level of complexity of a FinTech mobile is a significant determinant of its development budget. For example, creating a Neobank app with a comprehensive feature list and high complexity will incur greater costs than a Neobank app with minimal features. Here is the estimated cost to build a neobank as per various levels of complexity:

Neobank app typeEstimated average cost of mobile app developmentTime Frame
Simple$40,000 to $60,0003 to 6 months
Moderately Complex$60,000 to $100,0006 to 8 months
Highly Complex$100,000 to $250,0009+ months

2. UI/UX design of the app

Designing a robust neobank app requires you to carry out a well-defined UI/UX strategy that is capable of ensuring your business success. A sales design that caters to user engagement and retention will put your mobile app on the technological front while paving the way for its success. To achieve this, the app wireframes have to be quality assured against multiple testing techniques, which can individually impact the neobank development cost accordingly.

Factors that affect the cost of UI/UX design of the Neobank app include:

  • Visual elements
  • Typography
  • Color psychology
  • Content writing
  • Button placements
  • Branding
  • UI optimization
  • Portrait or landscape mode

3. App platform

The underlying app platform also impacts the Neobank development pricing. For instance, developing iOS or Android apps have different budget

ary requirements based on multiple factors such as the time frame, testing, etc. To keep your app development budget optimized, starting with a single platform at the beginning is recommended. As the app gains traction, you can switch to a cross-platform app.

4. Team size

The size of the app development team is a crucial factor in determining the overall cost of Neobank app development. Hiring freelancers may result in a lower budget, but it may also compromise the quality due to their limited expertise. Alternatively, outsourcing the project to a dedicated app development agency can optimize costs while leveraging their years of expertise.

Team size required for Neobank app development:

  • 1-2 project managers
  • 1-2 business analysts
  • 2-3 frontend developers
  • 2-3 backend developers
  • 1-2 designers
  • 1-2 quality assurance analyst

5. Location of the app development agency

The location of the hired Neobank Solutions development company also affects the overall development budget. It is vital to understand that the hourly rate of development in regions like Asia or Europe is comparatively less than in the UAE, UK, or the US. Here is the  estimated hourly development rate as per various regions:

RegionHourly Rate of Development
Western Europe$80-$90
Eastern Europe$50-$55

6. Maintenance

Proper maintenance of mobile apps is a critical factor that affects the overall cost to build a neobank. The maintenance cost includes charges required to ensure the bug-free nature of the app, along with charges required to offer app upgrades or implement new technologies as per market requirements. It is imperative to take significant actions to ensure the smooth functioning of apps on all platforms, providing a seamless user experience and ensuring the app’s longevity.

7. Tech stack

A robust tech stack is imperative to determine the overall success of your Neobank app development. The hired neobank app developers must implement top-notch technologies in the app to help it gain traction in the market. However, the cost of implementing multiple technologies varies accordingly.

Tech Stack to Develop a Neobank

8. Features

The feature list plays a crucial role when determining the cost to develop a neobank. Ideally, a highly complex app with an extensive feature list can cost you more. To ensure success in the market, a well-defined feature set that sets the app apart from competitors is necessary. The feature set should be capable of enhancing the user experience and increasing the app’s functionality.

User-Centric Noebank App Features

Neobanks, digital financial institutions that provide all their services online, are growing in popularity due to their practical and user-friendly features. Here are few user-centric characteristics of a neobank app:

User-Centric features of a robust neobank app

Biometric Security

Neo banks’ sophisticated security measures are among their greatest benefits. These banks use biometric authentication to ensure that only the account owner can access their account such as facial recognition, fingerprint scanning, or voice recognition. Compared to conventional PINs, which are susceptible to hacking and phishing assaults, this offers a higher level of security.

[Also Read: A Guide to Implement AI and Machine Learning in Your Existing Application]

Multiple Payment Options

Neo bank customers can access several payment options, including P2P, ACH, and A2A payments. Allowing people to choose the payment option that best meets their needs makes it easier for customers to send and receive money instantly. Customers that appreciate efficiency and speed can consider neo banks because they process transactions more swiftly than traditional banks.

Multiple Tiers

Clients of Neo banks have the luxury of choosing varying service levels, complete with differing features and benefits. Transaction volume, usage limits, or subscription-based models may categorize these levels. Through different service tiers, a wider array of customers’ needs and preferences can be addressed, making Neo banks an attractive option.

Speed and Convenience

Neo banks are renowned for their top-tier user experience. With quick and easy account opening, customers can manage their accounts online or via mobile. These financial institutions boast budgeting tools, quick alerts for transactions, and customer support via phone or chat- for times when customers need assistance with their banking.

[Also Read: What are the Elements for Interactive Chatbots Building Customer Engagement]

Cross-Border Payments

Cross-border transactions provide a mutually beneficial opportunity for businesses and their customers. By pooling their incomes, companies can generate increased revenue, which translates to greater financial power and a competitive advantage over rivals. Moreover, this enhanced financial capability provides an additional benefit to customers by allowing them to make cross-border transactions seamlessly.

Budget Assistance

One of the most sought-after neobank app features is budget assistance. Neobanking applications that prioritize consumer satisfaction offer a comprehensive range of financial services and promotes financial literacy. The primary objective is to provide enhanced value to users by helping them manage their daily budgets effectively and efficiently.

Appinventiv recently developed Mudra, an AI-based budget-management app that acts as a chatbot centric budget management solution. The app is capable of keeping tabs on the daily user expenses and informs them when their budget gets out of hand.


Real-Time Fraud Detection

All the neobank apps must have a fraud detection feature that can notify the users against phishing attacks or malware. Furthermore, the app should be capable of detecting fraudulent activities and genuine users.


Fintech applications and e-wallets are inherently linked, with e-wallets providing a seamless payment experience for users. From a safety standpoint, integrating e-wallet functionality into a Neobank app is a highly advantageous option. Combining e-wallet app development with Neo banking can provide significant business benefits while paving the way for increased user engagement and retention. The upcoming trends also suggest cryptocurrency wallets as one of the most sought-after features of a neobank app.

How to create a neobank app?

Carrying out the neobank development process from scratch can be difficult but rewarding. Here are eight steps to follow to successfully create a neobank app.

How to create a neobank app

Step 1: Identify your target market

It is crucial to know who your target market is and what they need and want from a Neobank. Understanding your target market can help you create an app that caters to their wants and tastes.

Step 2: Determine Current User Needs

The next step is finding market gaps and understanding what your target consumers want from a Neobank. In this phase, you can add features and functionalities to improve user experience and establish credibility.

Step 3: Hire Fintech Experts

To develop a successful Neobank app, you need to hire fintech mobile app developers with expertise in banking and financial apps, including knowledge of neo-banking. They will help you create a mobile app that meets your business requirements and provides an excellent user experience.

[Also Read: 7 UX Design Mistakes That Can Deter Your App Success]

Step 4: Develop Your Neobank Fintech Mobile App

In this phase of the neobank development process, your developers will design and develop the frontend, backend, and UI/UX of your Neobank app. They will implement the necessary features such as user verification, quick signup, investment, transaction history, etc.

Step 5: Establish Core and Backend Infrastructure

A robust backend infrastructure is essential for a Neobank to carry out all its activities. You must establish APIs to connect payment gateways to your Neobank app, a card processing app for debit/credit card transactions, and back-office tools for managing day-to-day operations.

Step 6: Compliance and Security

Maintaining customer data confidentiality and security is crucial for any banking services provider. Hence, you must establish a robust security infrastructure to safeguard your Neobank app and its activities from potential threats. It is vital to understand that the neobank app development cost can vary as per different security protocols implemented in the app.

Step 7: Test Your Neobank App

Before launching your Neobank app, it must be put through rigorous testing. Testing the app based on real-time use cases will help you identify and fix any loopholes and ensure your app is functional and secure.

Step 8: Promotion and User Onboarding

The final step is to promote your Neobank app and onboard users. A well-planned promotion strategy can help you attract more users and expand your customer base. Ensure the user onboarding process is seamless and straightforward, allowing users to start using your Neobank app quickly.

How to earn money from neobank apps?

Neo banks have completely transformed the old banking sector thanks to their novel business strategies and creative revenue streams. The five main business concepts that nonbanks rely on to make money are listed below.

Revenue models used by neobank apps

Interchange-led model:

For this model to work, merchants must pay interchange fees each time a client uses their card to make purchases. Additionally, some neobanks make money from affiliate marketing, cashback rewards, and referral commissions. (Chime, for instance).

Credit-led model:

According to this strategy, neobanks first provide a credit card or other comparable product before giving a bank account. On the credit they give their clients, they receive interest and fees. (Example: Nubank).

Ecosystem-led model:

The checking account may not be the primary profit driver in this model, but it unlocks a range of monetization strategies. Neobanks can earn revenue through value-added services, such as budgeting tools, savings goals, or investment options. Some neobanks also offer monthly subscriptions as an additional monetization vector. (e.g., Monzo).

Asset-led model:

This model focuses on offering high-yield savings accounts to customers and earning interest on deposits. Some neobanks focus on ethical or moral spending management and invest customer deposits in sustainable or socially responsible projects. (e.g., Aspiration).

Product extensions model:

In this model, neobanks leverage their customer base and technology platform to offer a broader range of financial products, such as insurance, loans, or investment accounts. This model blurs the lines between financial domains and drives innovation in the industry. (e.g., Robinhood).

In addition to these business models, some neobanks have also started to explore cryptocurrency and foreign exchange as potential sources of revenue. By offering seamless and affordable access to these financial instruments, neobanks aim to attract a new generation of customers who value convenience, transparency, and flexibility.

Looking to leverage the $66.82 billion Neobank app ecosystem view our services

How Can Appinventiv Help You Dominate the Digital Banking Ecosystem?

Traditional financial institutions are continuously facing the challenges of adapting to evolving customer preferences and competing with fintech firms. In contrast, neobank APIs are unburdened by large staff and capital expenses, allowing them to rapidly expand their market share. As a business owner, recognizing these shifts and establishing your own neobank will increase your chances of survival. Success in the digital landscape will not only benefit your business but also provide consumers with greater opportunities.

The emergence of neobanks has been one of the prominent trends in the FinTech ecosystem in the last few years. These digital banking apps are viewed as an alternative to traditional banks, as they prioritize digitalization, customer experience, and convenience. It is important to handle the development process of a Neobank with great care, as it is a complex undertaking.

As noted earlier, the Neobank app development cost varies between $40,000 to $250,000, depending on multiple factors like features, tech stack, hourly development rates, etc. Thus, hiring a dedicated financial software development company like Appinventiv that can help you leverage the modern trends and market requirements at an optimized cost is a sure-shot formula for your business success.

We recently helped India’s leading Fintech enterprise- Bajaj Finserv by scaling their merchant onboarding process. The next-generation digital marketplace now connects both customers and merchants while offering the former an affordable finance option. The app was capable of witnessing 3 Lakhs plus transactions in a day.

Bajaj Finserv Screen

Launching a successful digital financing app is very much about uncovering user expectations and market requisites and finding relevant solutions as per them. Get in touch with our team to discuss your ideas for dominating the FinTech space now!


Q. How does neobank work?

A. Neobanks provide a range of financial services digitally by partnering with licensed banks in the country. They utilize a cost-effective operational model that is innovative and technology-led to deliver personalized and high-quality services to their customers.

Q. How much does it cost to build a neobank?

A. The Neobank app development cost varies from around $40,000 to $250,000. There are further several factors that impact the overall development budget to create a neobank, such as the location of the hired app development team, the UI/UX design of the app, the features, the tech stack, etc.

Q. How long does it take to build a neobank?

A. The time frame required to develop a neobank app varies as per the overall app’s complexity. For example, a highly complex neobank app can take around 10 to 12 months, while a simple neobank app with a minimal feature set can take anywhere from 3 to 6 months. It is recommended to get in touch with dedicated Neobank app developers to get clearer cost and time estimates.

Q. How does neobanks app benefit businesses?

A. Various neobank app benefits includes:

  • Quick and convenient account handling
  • Easy banking transactions
  • Better customer experience
  • 24X7 availability
  • Cost efficiency
Sudeep Srivastava
Co-Founder and Director
Prev PostNext Post
Read more blogs
cost to develop an app like Revolut

How Much Does It Cost to Build A FinTech App Like Revolut?

FinTech businesses globally encounter a myriad of challenges that impede their growth and sustainability. These include cumbersome banking procedures causing transaction delays and hindering cash flow management, stringent lending criteria from traditional financial institutions limiting access to capital for expansion, navigating complex regulatory requirements leading to potential legal ramifications, and maintaining outdated financial systems hampering…

Sudeep Srivastava
How Much Does It Cost To Build A BNPL App Like Afterpay

How Much Does It Cost to Build a BNPL App Like Afterpay?

In today's ever-changing consumer environment, people constantly search for practical and customized payment options that align with their financial goals and spending habits. This changing mindset has sparked several ground-breaking innovations in the FinTech sector, with the "Buy Now, Pay Later" (BNPL) trend emerging as a frontrunner gaining long-term significance. Furthermore, BNPL applications are revolutionizing…

Sudeep Srivastava
Cash management software development cost

How Much Does It Cost to Build a Custom Cash Management Software?

Cash flow serves as a pivotal metric of a business's financial health, showcasing its efficiency in generating and managing cash resources. Leveraging financial data empowers companies to make strategic decisions crucial for growth and sustainability. Within this framework, a robust cash management system emerges as indispensable, equipping companies with the tools to monitor, analyze, and…

Sudeep Srivastava
Mobile App Consulting Company on Clutch Most trusted Mobile App Consulting Company on Clutch
appinventiv India

B-25, Sector 58,
Noida- 201301,
Delhi - NCR, India

appinventiv USA

79, Madison Ave
Manhattan, NY 10001,

appinventiv Australia

Appinventiv Australia,
East Brisbane
QLD 4169, Australia

appinventiv London UK

3rd Floor, 86-90
Paul Street EC2A 4NE
London, UK

appinventiv UAE

Tiger Al Yarmook Building,
13th floor B-block
Al Nahda St - Sharjah

appinventiv Canada

Suite 3810, Bankers Hall West,
888 - 3rd Street Sw
Calgary Alberta