Discover The New Banking Era With The Top 10 Neobanking Apps

Neobanks have ruled the world with their numerous advantages. Here are the top neobanking apps that have proved a hit in the US. These applications have given tough competition to the banking industry in the US. Knowing about the details of these payment applications – their pros and cons can help businesses in getting a clear idea of the competitive market.

Can you imagine a virtual banking system today? Well! The answer would be YES. But if the same question was asked a decade ago, people might not even think of it. So, basically, the Neobanks have revolutionized the banking industry.

What is a Neobank?

Neobank is a kind of digital banking system which has no physical branches. The only mode of operations for a Neobank is online banking. Neobanks have proved a super hit because of their advantages over traditional banks.

They offer a range of services with proper categorization of expenditures and revenue. Also, their customer care services are far more efficient than the traditional banks. Due to their numerous benefits over traditional banks, Neobanks have been the choice of millions of users. Top features of Neobanks include:

• Enhanced Customer Experience
• International Transfers and a Nationwide ATM Network
• Open Technical Infrastructure
• Customer-Centric Design

For detailed information read: Know How to Build an App for a Neobank – The Evolution of Future Banking

Growth of the Neobanking Industry

Look at the growth figures of the neobanking market.

Market Size Value (2022)	USD 66.82 billion
The revenue forecast in 2030	USD 2,048.53 billion
The base year of estimation	2021
Growth Rate (from 2022 to 2030)	CAGR of 53.4%

Top 10 US Neobanking Apps – Pros And Cons

Neobanking applications aim at offering financial services better than traditional banks. Here is a list of the top neobanking apps that are available in the US.

1. Chime

Chime is a fintech (financial technology) offering fee-free mobile banking services. It enables the users to open a credit, debit, or savings account and avail of fee-free overdraft facilities up to $200. Chime has partnered with The Bancorp Bank and Stride bank for FDIC-insured checking services and debit credit card procurement. (Federal Deposit Insurance Corporation)

Chime earns most of its revenue from the interchange model (charging from the merchant whenever a customer incurs an expenditure with them). It lets people get paid two days early and provides credit-builder services. Moreover, users have access to around 60,000 ATMs for free. 

PROS

• Chime has become the most downloaded application with around 12 million+ users in the past two years. The reason behind its popularity is said to be the personalized notifications, alerts, tutorials, user interface, pricing, and payments. 
• Chime offers two-factor authentication to stay in control of the funds. The transaction alerts are instant, with daily balance updates. It also enables car blocking in a single tap in case of apprehension. 
• There are no monthly maintenance fees, foreign transaction fees, or minimum balance fees. It also enables quick money transfers to friends, family, and relatives with no transfer fees. 

CONS

• No face-to-face support causes issues amongst users.
• Not every service is fee-free. Standard ATM withdrawal charges and third-party cash deposit fees apply.
• Many users complain about device compatibility.
• High charges on overseas card usage and no multi-currency option.

Founder	CEO Chris Britt CTO Ryan King
USP	Chime is not just a bank but a financial technology company
Price	Free
Downloads	10 M+
Ratings	4.5
Platform Fees	Free

2. Current

Current is a fintech company aimed at making spending, saving, and money management better. Its banking partner is a member of FDIC- Choice Financial Group. 

Current offers premium and basic account benefits to users of all ages. Users can set their children’s accounts and monitor their expenses, budgets, etc. Other features include high saving interests, early paychecks, rewards like cash-backs and points, instant gas hold removal, privacy controls, etc. 

PROS

• Current enables parents to build money management capabilities and independence at early stages. It offers backend supervision, so the child doesn’t feel controlled.
• There are no monthly fees and no minimum balance for a basic online checking account.
• It enables cash deposits via 60,000+ stores across the States. 
• Shopping at participating stores can generate rewards.
• Easy finance tracking makes money management seamless.
• Features that generate positive user sentiment include notifications, alerts, user interface, stability, and tutorial.

CONS

• Premium services cost highly. It is $4.99 for the current premium, and adding teen accounts is $36 per teen. Therefore, more than one kid’s account management can become pricey.
• Customer support is lacking due to no physical confrontation. Also, the documentation and verification process may become complex and overwhelming.

Founder	Stuart Sopps
USP	Mobile banking is better with Current
Price	Free
Downloads	1 M+
Ratings	4.6
Platform Fees	Basic service= Free, Current premium= $4.99, Child account= $36 per year per account

3. Varo

Varo is the first all-digital bank offering a comprehensive range of financial services. These include bank accounts management in one place, tracking spending, credit building, high-yielding saving account, access to a cash advance when qualified, and many other helpful features.

It differentiated itself from competitors by applying for a banking license to develop into a full-fledged bank. It created the financial services platform internally.

PROS

• Varo saves users’ money by eliminating monthly checking and saving account fees, overdraft fees (if eligible), in-network ATM fees (available in Walgreens, CVS, and 55000+ all-point stores), foreign transaction fees, debit card replacement fees, and transfer fees.
• Being eligible for Varo Advance enables you to get $100 as an advance. Up to $20, it has no fees, but more than that can attract $3-$5.
• It offers an impressive savings rate of a minimum Annual Percentage Yield of 0.50% to 3%.

 CONS

• Varo does not let users deposit money directly into the savings account. Therefore, while making cash deposits to checking accounts, users have to bear fees charged by third parties. 
• Paper checks are not allowed.

Founder	Colin Walsh and Kolya Klymenko
USP	With Varo, nothing stops the customers from going ahead
Price	Free
Downloads	1 M+
Ratings	4.7
Platform Fees	Free

4. Dave

Dave aims to become your banking buddy with breakthrough financial tools to improve your economic health and no fees. It helps avoid overdrafting and offers real value and solid strategies to boost the credit score.

Dave alerts you when your checking account goes red. It offers analytical budgeting and cash management features. Users can avail of loans and repay them

a) auto-debit when the paycheck arrives

b) any earlier date

However, qualifying for loans and advances requires having a steady income flow and other requirements.

PROS

• Dave is suitable for individuals who keep over drafting. The interest-free model saves money on overdraft or non-sufficient funds fees. 
• By paying the rent and utilities on time, users can build and improve their credit scores.
• It analyzes the spending pattern to create a budget and alerts if users miss an expense. 
• Dave offers job opportunities and ways to earn extra money. 
• It generates positive user sentiment via notifications, alerts, signup, login, user interface, and tutorial. 

CONS

• Inflexible cash advance feature with users not able to change the payback date and a small-cap of $75 on a standard account. 
• It charges a monthly membership fee of $1. 
• The cash management account does not offer APY and charges low-monthly fees.

Founder	Jason Wilk
USP	Dave helps improve your financial health with the breakthrough financial tools
Price	Paid
Downloads	5 M+
Ratings	4.4
Platform Fees	Membership fee of $1 monthly, optional express free between $1.99 to $5.99 to receive funds faster (within 8 hours instead of 1-3 days), optional tips up to 20% of the amount borrowed

5. Albert

Albert is a saving, budgeting, investing, and banking solution. It offers enriching features like direct deposits, debit cards, early paychecks, and advances.

It offers a comprehensive view of users’ financial picture via pie charts, budgeting tools, etc. Their experts guide your investments in the right direction. Subscribing to the paid version gives access to unlimited human financial advice. It encourages savings by transferring a particular amount automatically to the savings account.

PROS

• Albert app is rich in features that help manage finances. It partners with various companies to lower the bills, prevent late fees, and notify overspending. Access to direct deposits is quicker than traditional banking. 
• Money management tools make saving, investing, and budgeting seamless and efficient. 
• No inactivity or monthly fees get charged.
• Early paychecks help plan expenses accordingly.
• Cashbacks and other rewards are available using debit cards and the app for money transfers.
• Financial health scores and expert advice let users stay on top of their finances and goals.

CONS

• The interest in savings is pretty low than other applications. 
• Not having a mobile check deposit feature creates a mess as users have to transfer money from a different account. 
• More than one saving transaction requires Genius access. 
• It does not have a desktop version. 

Founder	Yinon Ravid and Andrzej Baraniak
USP	Powerful technology to automate finances
Price	Free
Downloads	1 M+
Ratings	4.1
Platform Fees	No fees except Genius subscription is of $4 per month

6. Moneylion

Moneylion is a personal finance company providing users with finance, mobile banking, cash advancing, investing, and more features. The account minimizes service fees and offers a viable alternative to a traditional checking account. 

It provides instacash, automatic spare change investing, credit builder plus, and investment advisory services.

PROS

• There is no overdraft, insufficient funds, or foreign transaction fees
• Access to 55000+ fee-free ATMs nationwide
• It offers loans without much inquiry
• Cryptocurrency features and prizes are available
• An integrated financial service platform
• Investment portfolios are customizable

CONS

• It only offers loans of small amounts, which may not be as valuable. 
• There is no dedicated financial planner or advisor
• Paper checks are not useful

Founder	Chee Mun Foong, Diwakar Choubey, Pratyush Tiwari, Adam Green
USP	Most powerful financial membership
Price	Free
Downloads	1 M+
Ratings	4.4
Platform Fees	Monthly maintenance fee $1, Credit Builder Plus account- $19.99 monthly plus your monthly loan payment

7. Aspiration

Aspiration is a cash management app that lets users save, invest, and bank with a conscience. It helps them make ethical choices with their money without opening traditional savings and checking accounts. They can use it to Spend and Save for routine transactions.

PROS

• Users have a ‘Pay what is fair’ policy for the basic Aspiration Save and Spend account, even if it is $0. 
• The Aspiration Plus account offers up to 1% Annual Percentage Yield on balances up to $10,000. More than $10,000 attracts 0.10 % interest. 
• Users can earn cashback using an Aspiration debit card by shopping with partners in conscience coalition with the company. The amount is between 3% to 10%.
• It claims that deposits do not fund fossil fuel production or exploration. However, the techniques applied are not mentioned on their website. 
• There are no hidden or overdraft fees.

CONS

• It requires a minimum of $10 for deposits. 
• It does not support cash deposits.
• Higher savings interest requires incurring expense on Aspiration plus of $5.99 per month. 

Founder	Joe Sanberg
USP	It provides brokerage services and securities products
Price	Free
Downloads	1 M+
Ratings	4.1
Platform Fees	Optional to pay what you think is fair; Aspiration Plus comes at a $5.99 monthly fee

8. Sofi

Sofi- short for social finance began as a personal loan and student loan refinancing company. Today, it is a one-stop shop for all the financial services- save, spend, earn, borrow, and invest.

Sofi checking and saving accounts can earn interest rates up to 1% APY. It enables crypto trading, stock investing, ETF, retirement funds, etc., with no commission or minimum amount. Sofi loan with no hidden costs encourages savings. There are complementary analytics and budgeting tools to check financial health. 

PROS

• There is no minimum requirement to start investing or opening a deposit account.
• There are no maintenance or overdraft fees. 
• In-network ATMs are accessible free of cost nationwide. 
• Value-adding features like comprehensive financial view, loan, savings, investment, etc., are available.
• High-yielding savings account from 0.25% to 1% APY. 

CONS

• Cash deposits are not allowed with the app
• Transaction limitations restrict functioning
• There are no options for business banking

Founder	Ian Brady, James Finnigan, Dan Macklin, Mike Cagney
USP	An easier way to control finances
Price	Free
Downloads	1 M+
Ratings	4.3
Platform Fees	Free

9. Acorns

Acorns help grow money by investing in your future and retirement plans. It invests money in recurring ETFs backed by experts. Moreover, investment accounts for kids and custom rewards for families are available.  

The checking account and a metal debit card allow early paycheck and a portion invested automatically. It offers rewards, job opportunities, and financial literacy through educational content.

PROS

• It promotes savings by investing spare change automatically. 
• Cashback is available with selected retailers. 
• Educational content is available, which differentiates it from other Neobank apps. 
• No minimum amount to open accounts
• It offers automatic rebalancing of the portfolio to adjust to market fluctuations and other affecting factors.
• Easy to use and navigate interface

CONS

• Too high tiered-fee structure on small account balances
• No human advisors or tax-loss harvesting
• Fees paid to access the checking account

Founder	Jeffrey James Cruttenden and Walter Wemple Cruttenden
USP	Specializes in micro-investing
Price	Paid
Downloads	5 M+
Ratings	4.6
Platform Fees	$3 per month personal and $5 for family

10. Go2Bank

Go2Bank enables users to manage their finances and build their credit with a mobile banking app and debit card enriched with features. Its value and convenience lie in direct deposits with no fees, a vast ATM network, overdraft protection, early paycheck, better credit scores, fraud alerts, etc. 

PROS 

• It offers 1% APY across all saving vaults. 
• Dividing saving goals up to 5 accounts
• Seamless cash deposits and withdrawals with vast ATM and retail network
• Not many inquiries in the credit check
• Cashback and rewards on purchases 

CONS

• A monthly fee of $5 gets charged if deposit requirements are not met
• High saving interest rate is only for the first $5000
• Customer service options are limited
• No paper check privileges are available
• Transfer from Go2Banks to an external bank account is not allowed

Founder	Scott Moran
USP	Better manage your money and build your credit
Price	Free
Downloads	1 M+
Ratings	4.5
Platform Fees	Monthly $5 fee waived with a direct deposit account.

Build Your Own Neobanking Apps

Making an application is not an easy task. It requires a lot of brainstorming and innovative ideas to make an application that would stand out from the crowd. To make the application development process easier and more convenient, you need experienced developers. Idea Usher is one of the best application development companies which can provide you with all your requirements.

The experts at Idea Usher can help you develop an application from scratch. You can create mind-blowing features for your app with the help of experienced developers. This would make your application a great hit in the market.

Final Words

The above-mentioned list of top neobanking apps has brought a revolution to the banking industry. They might have given you a fair idea of the competition that is already there in the market. Now if you want to create an app that could fight this competition, you need some creative ideas. To get out-of-the-box application development ideas, you should visit Idea Usher.

For more information and a detailed understanding of the application development process, you can contact them at.

E-mail: [email protected]

Phone Numbers : (+91)9463407140, (+91)8591407140, and (+1)7329624560

FAQ‘s

Here are some interesting FAQs on top neobanking apps

Q. What is The Estimated Time To Develop A Neobanking App?

A. Depending upon its features and functionalities, the time taken to develop a neobanking app usually ranges between 45 days to 90 days.

Q. How Can Someone Start a Neobank?

A. The steps to start a neobank include:

1. Define Your Target Audience and Value Proposition
2. Create a Fundamental Basis for a Neobank
3. Build Strong Cornerstones – Backend Infrastructure and Frontend Development
4. Maintain Neobank Security and Compliance
5. Testing
6. Deployment
7. Marketing

Q. What Are Open Banking Initiatives?

A. Open banking aims to create better financial services options for consumers by giving more stakeholders access to finance.