Neo banking is aiming to be the next step in the evolution of the banking sector and a real alternative to traditional banks. A neo bank essentially refers to a type of direct banking system which is purely online and without any physical branches like the traditional commercial banks in India. If you are an aspiring entrepreneur wanting to learn how to start a neo bank you have come to the right place.
In this blog post we’ve outlined the most important steps that would help you get started, with your own neo banking project. So let’s find out the things you need to do:
Identify the target customer segment and your value proposition
You need to understand who are you going to target. Who are they? What are their pain points? These questions will help you come up with your value proposition and the strategy that you are going to use to reach out to them. You should also know what is their current state of affairs and how they want to improve their situation. This is the most important step because it will help you in determining how to solve their problems and how much value you can add to the market. In order to do this, you need to conduct research on a number of topics such as demographics, psychographics, lifestyle and other important aspects that pertain to your product or service. The key here is to try and understand what motivates people, what they value and what problems they face in their daily lives.
Identify the pain points of customers
After defining your target audience, identify their pain points along with the types of solutions they are looking for. These solutions should be based on your own ideas about what makes people happy and satisfied with life. This will help you understand whether there is a market for your product or not. To identify the pain points you may have to conduct in-depth prospective customer interviews. You can also conduct client surveys or focus groups as well as use any other method that helps you gain an insight into their needs, concerns and expectations from your business idea. The pain points of customers could include anything from difficulty in opening a real account to a slow cash withdrawal process.
Once you have identified these issues, it is essential that you find out what are the existing solutions available in the market that address these issues. This can be done using various channels like speaking with people who have experienced similar situations or by reading relevant blogs and articles online.
Build a strong core and backend infrastructure
The next step is to build a strong core and back-end infrastructure for your Neo bank. This involves setting up systems such as data storage, security, payment processing and fraud prevention — all of which will help ensure that your customer’s information remains safe at all times. You should also think about hiring staff who are knowledgeable about these areas so that they can support customers when they contact the bank’s call centres or online support portals. A strong core should also include the internal processes that make up the foundation of your bank. These processes include those related to back office operations like HR management, finance and accounting, risk management, treasury management etc.
Identify the must-have features that you should offer
At this stage, you have identified your target customers and have a clear idea of what they want. But before you start building anything, it’s important to identify the must-have features that your customers will find interesting. This will help you focus on creating a product that matches their expectations.
Focus on experience design
Once you have identified the must-have features, it’s time to think about how they can be delivered in an engaging way. Experience design is all about creating a positive customer experience through a user interface (UI), customer service and other touchpoints like marketing materials and advertisements.