branches behind. The latter is often called neobanks or digitalonly banks. To operate legally, they partner with bank license issuers and distribute virtual and physical cards just like traditional banks do. Among the most popular banking solutions that provide digital services are: • Chime is the US most popular neobank that allows its customers to open deposit and debit cards, view their credit history, easily withdraw cash, automate savings, and more. • Wise is not purely a mobile bank, but a system offering electronic money accounts. It offers international and domestic money transfers, provides debit cards, and provides options to operate with different types of currencies. • N26 is a German digital bank that evolved from a startup and is now functioning in more than 50 countries. For users, its capabilities include direct deposits, international fund transfers, and personal finance management. • Monzo is a popular neobank from the UK. Their services include p2p transfers, splitting the bills, easy budget tracking, digital loans, and many more. Each success story has a tedious formation process and hours of work behind it. Now, let’s figure out how to develop a digital bank. How can you develop a digital bank? Banking software development requires a deep knowledge of the market. This includes understanding the legal part, complying with the industry requirements, and bringing to the table hands-on technical knowledge. Getting started with digital banking, make sure you’ve figured out the things to do first and have in place all the assets to get you covered. Among the challenges you may face on this way are: • Building product architecture requires involving a Business Analyst and a Solution Architect. Together with the stakeholders, they are to decide which of the architecture types (monolith, microservices, or layered) better aligns with the technical requirements and business goals. • Choosing the right technology stack you need to mind the time to market, a long-term development strategy, and the risks to mitigate. A quick overview of the digital banking market The market for FinTech services is growing exponentially, and it’s projected that by the end of 2022, more than 65% of the US population will be banking online. The target audience for digital banks. Taking into account their lifestyles and aspirations, Millenials and Gen Z representatives are considered to be the most active mobile banking users. At the same time, the share of online banking users aged 50+ has also grown in recent years. While Millennials turn to online banking to make the most of online transactions, peer-topeer transfers, and cashback, the representatives of older generations may benefit from obtaining information about bank products, receiving mobile payments, and tracking their balances online. So, deciding on the audience to target with your banking product, you better take into account the needs of different age groups. Popular online banking solutions Some banks make digitalisation a part of their transformation strategy and FinTech businesses provide digital banking without having any brick-and-mortar F i nanc i a l Innov a t i on & F i nTech 40 Finance Monthly.
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