Have you heard about neobanks?
They operate entirely online, so you can open an account, pay bills, or transfer money without ever visiting a branch. It makes everyday banking fast and convenient.
Take Chime, for example. It is a US-based neobank that helps people manage their money right from their phones. You can track spending, organize finances, and access multiple services all in one place.
Neobanks offer more than just accounts. They include budgeting tools, notifications, and features that make managing money easier than ever.
Understanding the economics behind neobanks sets the stage for seeing why strategy and planning are just as important as technology. Let’s see how it all works.
Inside the Economics of Building a Neobank
Building a neobank involves more than just setting up an online platform. You need strong technology, careful attention to regulations, and smart strategies to attract and keep users. All of this helps create a bank that can grow efficiently and provide reliable service.
Neobanks also focus on making banking simple and useful for people. Features like instant payments, budgeting tools, and helpful notifications make it easy for users to manage their money. By combining efficient operations with tools people enjoy using, neobanks create a business that works well and appeals to investors.
So really, what it all covers, go through it
What Is a Neobank and Why Are They Popular
A neobank is a bank that works only online through a mobile app or website. Unlike traditional banks, they do not have physical branches. This keeps costs low and makes it easier to launch new features quickly. Neobanks are growing fast. In 2025 there are about 350 million people using them worldwide, which is up 16 percent from around 302 million in 2024.
The Customer Experience
People enjoy opening accounts instantly, making payments easily, and seeing clear, transparent fees. Tools like spending insights, budgeting features, and notifications help users manage their money confidently. Younger generations value the speed, and everyone benefits from easy access and clear information.
Investor Perspective
For investors, neobanks are interesting because they cost much less to run than traditional banks. Since they are digital only, they can grow quickly without spending on branches. The size of leading companies shows how big the opportunity is. Nubank already has 118.6 million customers, Revolut has 52.5 million customers, and Chime has about 20 million accounts.
Why Neobanks Have High Costs
Even though neobanks don’t have physical branches, running them still requires substantial investment.
Technology Infrastructure
Neobanks need their platforms to be secure, reliable, and fast. That means spending on cloud systems, servers, cybersecurity, payment integrations, and making the app easy to use. All these investments make the platform smooth for users, but they also add significantly to costs.
Compliance and Trust
Following regulations is essential. Identity verification, secure transactions, and anti-fraud measures are necessary to build customer trust. Setting up and maintaining these systems is expensive, but it’s critical for the bank’s credibility and long-term growth.
Customer Acquisition and Engagement
Attracting new users takes money. Social media campaigns, influencer partnerships, and referral programs all cost a lot, but they help bring in users and keep them engaged, which increases customer value over time.
So don’t worry if you’re thinking a neobank might be expensive to run but still want quality features and advanced services. Hashcodex is the best choice to go with. Their expertise in neobank app development and ability to provide services in multiple countries makes them a reliable partner to check out.
How Neobanks Make Money
Neobanks earn money in several ways, which helps keep their business stable and growing.
Interchange Fees
Every time a customer uses their debit or credit card, the merchant pays a fee, and a portion of that goes to the bank. Millions of transactions happen every day, and these small fees add up to a significant revenue stream.
Subscription Accounts
Some neobanks offer premium accounts that include features like budgeting tools, cashback, higher withdrawal limits, or travel benefits. Subscriptions give the bank steady, predictable income, which can be reinvested in technology and improving the customer experience.
Lending and Credit
Offering credit cards, personal loans, and overdrafts provides another way for neobanks to earn money. Lending helps customers meet their financial goals while generating interest income. As more people join, this revenue grows stronger.
Partnerships and Financial Services
Neobanks often team up with insurance providers, investment platforms, or savings programs. These partnerships allow them to offer more to customers while bringing in additional income, benefiting both users and investors.
Why Unit Economics Matter in Neobanks
When we talk about why unit economics matters in neobanks, we are looking at several important things. First, it covers the cost of acquiring each customer and the money they bring in over time. For example, if a bank spends twenty dollars to get a new user, but that user ends up generating fifty dollars over a year, the bank is making a profit on that customer.
Next, it looks at customer lifetime value. Engaged users who use features like budgeting tools, instant payments, or premium accounts stay longer and bring more value.
It also shows how profits grow once the revenue from a customer is higher than the cost to acquire them. Investors watch these numbers closely because they show whether the bank can grow successfully and stay profitable.
Why Neobanks Are Still Attractive
Neobanks are still getting a lot of attention because they bring a fresh approach to banking and offer interesting opportunities for investors.
How They Help Customers
They make banking easy. You can make payments instantly, know exactly what fees you’re paying, and use tools to manage your money without any hassle. People like this kind of clarity and convenience, and it helps banks build a loyal group of users who keep coming back.
Keeping Costs Low and Growing Fast
Since everything is online, neobanks don’t have to spend money on physical branches. That means they can grow quickly and operate efficiently, which makes investors feel more confident about their potential to earn over time.
Big Opportunities in the Market
There are still millions of people who don’t use traditional banks or are just discovering digital banking. Getting involved now gives a chance to reach more customers as online banking continues to grow around the world.
The Future of Neobanks
Neobanks are changing fast as technology improves, services become more specialized, and rules are followed carefully.
Focusing on Specific Customers
Many neobanks are starting to concentrate on particular groups, like freelancers, small businesses, or people who grew up using digital technology. This focus allows them to offer services that fit each group’s needs better, keep customers more engaged, and increase the value each customer brings over time.
Adding More Services
Neobanks are adding things like insurance, savings accounts, or investment options. Offering these additional services makes banking more convenient for customers and creates more ways for the bank to earn money.
Following the Rules
Being fully compliant with regulations builds trust with customers and allows neobanks to grow safely. Following the rules helps them avoid risks and opens up opportunities in new markets.
Conclusion
Neobanks are changing the way we think about banking. They use smart technology, offer features people actually enjoy, and have different ways to make money, which makes them interesting for investors. By focusing on growing their customer base, keeping users happy, and offering extra services, they create real opportunities to earn and expand.
If you are thinking about investing in the future of banking, neobanks are definitely worth a look. They bring fresh ideas, practical solutions for customers, and the potential to grow steadily over time.