Financial software · 9 min read
What Software Does a Neobank Need?
A capability map of the systems behind a digital banking product — and which parts must come from licensed providers.
Updated 30/10/2026
Software and licensed services are different things. Software records balances and orchestrates workflows; settlement, card issuing and scheme membership come from authorised providers.
Core capabilities
- Customer and account management — profiles, products, account opening, limits.
- Ledger and balances — double-entry records of every movement, reconciliation with safeguarding or partner accounts.
- Payments orchestration — SEPA/Faster Payments/SWIFT connectivity via your bank or EMI partner, status tracking, returns.
- Cards — integration with a card issuer processor and BIN sponsor.
- KYC/KYB — identity verification, sanctions/PEP screening, document capture.
- AML monitoring — rules, case management, SAR workflows.
- Back office — support, fees, statements, reporting, audit trail.
- APIs — for apps, partners and data.
Implementation routes
- Build — maximum control, highest cost and longest time to market.
- Subscribe — hosted platforms charging per account or transaction; fast to start, costs scale with growth.
- License — annual or perpetual licences, sometimes with source code; higher upfront cost, more long-term control.
Use the Build vs Buy Calculator to model these options with your own assumptions.
General information, not legal advice. Confirm current requirements with the competent authority.