What is a neobank? How app-only money accounts work, and how they differ from banks
By SendPay Business · · 2 min read
- 1Name it and pick your colours
- 2Choose what it does
- 3Launch when you are ready
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.
Try it
Name your platform and watch it come to life
Type a name, tap a colour and pick what it does. The phone changes as you go.
Colour
What it does
Design and preview your whole platform free, then launch when you are ready.
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 is the Business Account Platform, and you can design and preview it free first.
How it works
Money on its way- 1Pick who to pay and type the amount
- 2Tap send and it is on its way
- 3It lands in their account
Why sign up
Create your free SendPay account
It's all about creating your own financial platform with ease. Start with a free account today.
- 🪪A free business accountOpen it in about a minute with your business name, email, password and mobile. No card and no documents to start.
- 💳Get paid from day oneTake card payments, and share your own payment link and invoices so customers pay in a click.
- 🌐A free business websiteFree to build, free to publish and free to keep, with unlimited visits.
- 🚀Your own financial platformDesign and preview your whole platform free, then launch when you are ready.
SendPay Business is a technology company, not a bank. Accounts, cards and payments are powered by licensed partners.
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 →Read next
Spotted a mistake or something out of date? and we'll fix it. How our guides are made
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. Other companies named in this guide are reference points only and are not affiliated with SendPay Business.