SOFTWARE FOR NEOBANKING: MODERN WHITE-LABEL SOLUTIONS IN FINTECH INDUSTRY

Abstract

In the dynamic, unpredictable and so changeable modern world, all spheres of life are facing changes. The banking system was not left aside. Implementing innovative fintech solutions was the only option for traditional banking institutions to stay afloat. That's why the new types of banking institutions - neobanks appeared. The term “neobank”, which originated in 2017, refers to a new type of financial institution that provides modern, fast, and flexible services right in a smartphone or messenger. White-label financial services allow fintech and third parties to showcase a stylish, company-branded front end using an established bank license, regulatory compliance, and back-end technology to offer core banking features that compete with large institutions. The article analyzes the advantages and further prospects of the development of neobanks, the difference between white-label and baas solutions, as well as the principle of operation of each of the systems. An analysis of the modern market of platform developers for neobanks was carried out, which made it possible to identify the largest market players from European and Scandinavian countries. As a result of the study, the features of each of the developers of platforms for neobanks and their contribution to the development of the world economy were determined. Also, the article highlights the factors that make white-label solutions the future of online banking. The article mentions important conditions for the development of white-label solutions for neobanks, traditional and non-traditional banks – the improvement of the regulatory framework that would determine the legal status of such kinds of institutions, as well as the conditions for licensing and regulation of their activities. In the article, the most popular providers of neobanks are described. The conducted comparative analysis gave the opportunity to highlight the factors that provide these companies success, as well as to name the current market leaders. Overall, the study made it possible to identify the advantages, disadvantages, and risks of neobanks, and determine factors that provide stable growth for white-lable neobanks as well as prospects for their development.