Neobanks
Neobanks are digital-only financial institutions that operate without physical branches, offering banking services such as accounts, payments, and loans entirely through mobile apps and web platforms. They leverage modern technology to provide user-friendly, low-cost, and innovative financial solutions, often targeting specific customer segments like millennials or small businesses. Unlike traditional banks, neobanks typically partner with licensed banks to hold deposits and ensure regulatory compliance.
Developers should learn about neobanks when building fintech applications, as they represent a growing sector that relies heavily on APIs, cloud infrastructure, and mobile-first design. This knowledge is crucial for roles involving digital banking platforms, payment systems, or financial data integration, where understanding regulatory requirements and user experience in a branchless environment is key. Use cases include developing customer-facing apps, backend services for transactions, or security features in compliance with financial regulations.