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Neobanking companies are faced with a multitude of unique challenges.
Part three of a three-part series.
The neobanking industry is unique, revolutionary, and truly suits consumer demands. Despite this, it's anything other than the slam dunk one would expect.
From difficulty establishing rapport and credibility to unfinished sign-ups, the neobanking industry is full of novel, never-been-solved-before hurdles. To handle these, neobanking leaders have gotten creative.
Here's what we learned in our research understanding how neobanks solve novel problems.
Get the guide: Unlocking neobank growth
Getting more users to complete onboarding
In some cases, a single design tweak can reduce drop-offs by several percentage points. Neobanks that A/B test sign-up forms, micro-copy, and identity verification steps see lower abandonment and higher conversion.
One study showed over two-thirds of consumers bail on digital banking applications at some point—so even minor improvements in the onboarding funnel can net a significant boost in total activated users.
Accelerating usage with targeted incentives
Once sign-ups are on board, neobanks test everything from a $5 activation bonus to in-app prompts triggered at just the right moment. When a user is nudged to fund their account or complete a small transaction within 48 hours, it can drastically increase the odds they’ll stick around.
As a result, many leading neobanks experience measurable upticks in early deposits, sometimes by double-digit percentages after fine-tuning their approach.
Engineering continuous engagement
Even the most polished first impression doesn’t guarantee long-term loyalty—so top neobanks conduct regular experiments on how to keep users active.
Testing personalized notifications, offering relevant new features at exactly the right time, or introducing small gamification elements has proven to cut churn and bolster daily/weekly active usage. A more engaged base translates directly into higher transaction volume, greater cross-selling success, and stronger lifetime value.
Unlocking cross-sell opportunities
For many neobanks, revenue hinges on getting customers to adopt a range of financial tools, from savings to credit or premium plans. Leaders systematically test how (and when) they surface these products.
If, for example, prompting a “high-yield savings” feature after five successful debit transactions lifts adoption rates by 20%, that’s a critical insight that might not have emerged without experimentation. These cross-sell gains can significantly increase per-user revenue.
The unmatched edge of relentless testing
While traditional banks may roll out updates and hope for a positive reception, neobanks iterate their way to the best user experience.
By running structured experiments at every stage of the customer lifecycle—onboarding, first deposit, ongoing retention, cross-selling, and more—they swiftly figure out what truly resonates. It’s a process that compounds; each insight makes the bank smarter, more profitable, and harder for competitors to catch.
A culture of experimentation breeds success
This secret thread—unwavering commitment to testing and data—isn’t just a best practice; it’s the backbone that gives neobanks a near-unfair edge. Their product decisions are informed by real user behavior, not guesses or outdated models.
In a market as crowded and fast-moving as fintech, that data-driven discipline leads to rapid, meaningful gains in user satisfaction and profit. By embracing an experimentation mindset, neobanks stand ready to outpace and out-innovate incumbents, proving that small iterative wins can add up to transformative results.
Neobank growth guide
