What is a neobank? How app-only money accounts work, and how they differ from banks
By SendPay Business · · 2 min read
A neobank is a money app that works entirely on your phone, with no branches. Well-known examples in the UK include Monzo, Starling and Revolut. Some hold a full banking licence, while others run as e-money firms or on a partner's licence.
How they differ from high-street banks
- No branches: everything happens in the app, including opening an account.
- Fast sign-up, often in minutes, with identity checks done on the phone.
- Spending alerts, budgeting tools and cheaper spending abroad built in.
- Built on modern technology rather than decades-old bank systems.
Is money in a neobank protected?
It depends on the licence. Money in a UK bank is covered by the Financial Services Compensation Scheme up to its limit. Money in an e-money account isn't, but the firm must keep customers' money separate from its own, so it can be returned if the firm fails. Every app should say which applies.
How new neobanks get started
Few start by getting a full banking licence, which takes years and a lot of money. Most launch on a partner's licence and technology, focusing on one group of customers the big banks serve poorly, then grow from there.
Launching your own
SendPay builds branded neobank platforms, powered by licensed partners, with accounts in GBP, EUR and USD, cards, payment links and currency exchange. The full suite, the Business Account Platform, starts at £5,000, and you can preview it free first.
Build it
Create your own financial platform.
Pick a template, name it, brand it, preview every page before you pay. Your brand, your users, your fees.
Build my platform →Questions people ask
Which money app should I launch?
Answer a few questions and get a suggested platform type.
Which money app should I launch? →How do neobanks earn money?
Card fees, currency exchange, paid plans and more. The guide explains each one.
How neobanks make money →What's the difference between an e-money firm and a bank?
The guide explains licences, protection and what each can do.
E-money institution vs bank →What does a white-label banking app cost?
The cost guide breaks down the build, cards and running costs.
White-label banking app cost →Read next
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.