How to start your own neo bank?

Neo banking actually a modern form of agent banking. Actually, you/your company will manage an FBO account with your own ledger. you will get an account number and routing number. You will programmatically generate an account number but the routing number will be the same for all of your customers.

Let me explain how you can start your own bank from scratch

1. Get an FBO account approval
2. Typically FBO account provider will provide you API then you can build your own ledger or integrate some third party (like modern treasury)
3. If they don’t provide you API they will provide you access to their FTP server. You will upload your NACHA file to their server and the server will process it after completion of the process they will provide you a return file to complete then you will read those files and update the ACH transaction status in your application. Some modern banks will also status via webhook.
4. Sometimes it is hard to build neo banking from scratch because banks need approval from a visa or master card (if you want to issue a physical card), wire transfer, some banks depends on another provider, etc.
5. If you want to know the technical staff use this link — https://jewelhuq.wordpress.com/2022/02/02/how-to-build-a-neobank-from-scratch/
6. Instead of building yourself everything from scratch from the different providers you can use baas (banking as a service provider) to onboard or lunch your bank within 1–2 months. You can use Solidfi, Modern Treasury etc.
7. Here is the brief summary if you want to create your neo bank from scratch — https://notafintech.company/

Some neo banking related jargon or company you should know

Cambr, Marqeta, i2c, Synapse, Galileo FIS, Fiserv, Jack Henry and TSYS
Debit Card manufacturing Companies:

Idemia

CPI

G&D

Perfect Plastic

Arroweye

Advantages: faster card delivery, redundancy

Merchant payment processing

Stripe

Adyen

Braintree

Worldpay

Globalpayment

Bolt

Advantages: cost, acceptance, redundancy

Bank account linking

Plaid

Yodlee

Quovo

Finicity
Advantages: Coverage, reliability

Bank account issuing Every BAAS platform:

Q2, Marqeta, Synapse, Galileo, i2c,
Advantages: Issuing cost, Reliability Bank underwriting Radius, Evolve, Regions, Sutton
Advantages: bank account portability

Identify Verification Provider

wihtpersona

Resources:

How I invest

https://jewelhuq.wordpress.com/2021/10/16/baas-open-source-info-banks-processors/