Fintech
Post LinkedIn lead magnet · Fintech
Most neobanks are not banks. They’re orchestration layers. Money goes in. Cards work. Transfers move. Simple, right? But when you look at how modern neobanks are actually built, a very different picture appears. Banks rely on many specialized companies to do the hard parts: - One company checks your identity (KYC) - Another issues your card - Another moves money via ACH or wires - Another holds the actual deposits as a licensed bank - Others handle fraud, analytics, notifications, and security Thats why at the diagram you can see more 3rd party ''boxes'' than internal. Basically neobank sits in the middle of all the parties . What it actually means: - The API Gateway is like an air-traffic controller, deciding where every request goes. - The microservices don’t “own” money — they coordinate steps. - The core database and ledger stay intentionally small and controlled. - The payment processors and sponsor banks do the regulated, legally heavy work. Why this is good • Neobanks can launch much faster • They don’t need a full banking license on day one • Specialists handle compliance and infrastructure at massive scale • Teams can focus on user experience and product design Why this is dangerous • if one vendor goes off it can freeze the whole app • Neobank can feel the problem instantly across the stack • no1 knows who is responsible when something breaks • “API-first” increases dependency risk instead of reducing it In June 2019 Monzo Bank had a card outage lasting several hours, affecting millions of its ~4–5 million customers at the time and blocking everyday payments like groceries and transport. (if they had DECTA this would not happen coz we have 99.99% uptime #shamelesssalesplug :) ) So the real competitive advantage isn’t which vendors you use. It’s how well you orchestrate them: Retries, Fallbacks, Queues, Reconciliation, etc Funny fact is - if anything brokes and vendors goes off for one hour, client dont see the vendor, but they see the bank. Sho who is really accountable?? If you are looking for reliable issuer/acquirer processor message me. If you want to learn how to bild a neobank ceck out the report in comments resources: Mckinsey, Accenture, BBC Mikhail Sadovskiy
Mécanisme lead magnet
If you want to learn how to bild a neobank ceck out the report in comments
