How to Start a Neobank in 2024: A Step-by-Step Guide for Entrepreneurs

Neobanks have quickly become a driving force in response to the growing demand for personalized, digital-first banking services. With nearly 400 million users projected by 2028 (Statista), there’s never been a better time to shape the future of banking. And with the right approach, entering the market in 2024 can be incredibly rewarding.

In this blog, we’ll show you how to build a successful neobank by focusing on strong customer communities (or "tribes") and exploring how white-label banking solutions can streamline the process. We’ll also share examples and key advantages to guide your journey.

What is a Neobank?

A neobank is a fully digital bank that operates entirely online, with no physical branches. It delivers financial services through mobile apps or web platforms. Neobanks are built to address specific customer needs, such as enhanced savings options, budgeting tools, and niche financial products.

Unlike traditional banks, neobanks are agile, tech-driven, and customer-focused, enabling quick adaptation and personalized services that suit modern lifestyles.

Why Build a Tribe Around Your Neobank?

One key trend in neobanking is the focus on building a loyal community or "tribe" around your brand. These communities thrive on shared values, uniting people around a common purpose that your banking platform can fulfill.

By addressing these specific needs, you can build a strong, loyal community that advocates for your brand. This loyalty translates into deeper customer relationships, helping you stand out from traditional competitors. Many successful neobanks differentiate themselves by prioritizing community-building over traditional banking models.

Rapid Growth of Neobanking Transaction Volumes

A quick data point before diving into the concept of tribes. Neobanking transaction values have surged from $0.23 trillion in 2017 to a projected $10.44 trillion by 2028. With nearly 400 million users expected by 2028, this growth highlights the global shift toward digital financial services.

Understanding the Concept of Tribes

At its core, a tribe consists of three components:

1. A group of people
2. A shared cause or purpose
3. A leader (or leadership) that organizes and represents the group

Modern tribes can form around any shared value or interest; whether cultural, social, or financial. With the help of the internet and social media, tribes can expand globally, creating loyal, tight-knit communities.

Examples: Neobanks Built Around Tribes

1. Akorn.app helps UK students manage their finances with budgeting tools, savings options, and financial education to build responsible money habits.
   
   
2. Bunq helps eco-conscious and tech-savvy users in Europe with features like tree planting for every transaction and flexible sub-accounts, making it popular among expats and digital nomads.
   
   
3. Majority helps immigrants with tools to send money home, make international calls, and manage banking needs in a new country.

These examples show how aligning your neobank with the unique identity of your target audience can help you stand out in the market.

Why Use White-Label Solutions to Start a Neobank?

White-label banking is like a partnership between non-bank companies and licensed financial providers. You get to create a branded financial experience for your customers, while the provider takes care of the complex aspects like compliance, regulatory requirements, and backend technology.

For a fast-moving fintech, this means launching digital accounts, payment cards, or even crypto wallets under your own brand without spending years on building infrastructure. By teaming up with a Banking as a Service (BaaS) provider that offers a white label solution, you can be up and running in months instead of years.

How to Start a Neobank in 2024: Step-by-Step

1. Define Your Tribe and Value Proposition
   Identify the community you want to serve. What are their pain points? What’s missing from the market? Your value proposition should solve these problems. Use data-driven research to spot market opportunities and underserved groups.
   
   
2. Choose a White-Label Banking Partner
   Pick a white-label provider to streamline development and compliance. This lets you focus on customer acquisition and tribe-building. Look for a scalable, flexible partner with solid support.
   
   
3. Design Your Digital Experience
   Build a seamless digital experience. Create a user-friendly app, strong online presence, and personalized journeys for your tribe. Ensure your platform is secure, mobile-first, and optimized for retention.
   
   
4. Build Community Engagement
   Create open communication channels for your customers to interact with each other and your brand. Use social media, forums, and digital spaces to foster connection. Loyal customers will help build a sense of community around your neobank.
   
   
5. Launch and Market Your Neobank
   With your tribe and white-label solution in place, launch your neobank. Use targeted marketing, influencer partnerships, and social media to grow your tribe and spread the word. Referral programs and early-bird offers can create buzz and encourage signups.
   
   
6. Ensure Continuous Improvement
   Starting a neobank is just the beginning. Keep innovating by listening to your tribe and evolving your services. Use data to continuously improve your product and meet customer needs.

Expertise, Authoritativeness, and Trustworthiness (E-A-T)
Starting a neobank in 2024 requires not only a sound strategy but also expertise, authority, and trustworthiness (E-A-T). By using white-label solutions and building a community, you can offer expert-level service and a brand your customers trust. Here’s how to build E-A-T:

1. Expertise
   Partner with established white-label providers who know the ins and outs of compliance and financial infrastructure. Collaborating with experts boosts your credibility.
   
   
2. Authoritativeness
   Lead in your niche by focusing on community needs and offering tailored solutions. Participate in fintech events and publish thought leadership to position yourself as an authority.
   
   
3. Trustworthiness
   Be transparent in your offerings and build trust through open communication. Make sure your customers understand data usage, pricing, and terms of service.

Conclusion: Your Tribe is the Future of Banking

In 2024, starting a neobank isn’t just about transactions—it’s about building a community of loyal customers who feel connected to your brand. People want more than just financial services; they want to engage with brands that enhance their lives. By leveraging white-label solutions and focusing on tribes, you can create a personalized experience that resonates deeply with your target audience.

Rather than trying to appeal to everyone, focus on a specific group whose needs you can fulfill. Now is the perfect time to use the power of tribalism to launch a neobank that stands out from the crowd, offering more than just banking, but a real connection.