The top 5 things we learned from studying neobank leaders

Why do some digital banks outpace the rest?

Part two of a three-part series.

When we examined how leading neobanks grow and retain their customers, we found five recurring strategies that set them apart. Notably, these innovators rely heavily on ongoing testing to validate ideas in real time.

Below are the top five lessons we took away—and a few direct quotes that illustrate why experimentation truly matters in digital banking.

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1. They obsess over removing onboarding friction

Many neobanks see high drop-off rates during sign-up. Leaders address this by running what experts call “continuous A/B tests on [the] registration page,” iterating on form length, progress indicators, and KYC methods to lower abandonment.

In fact, over two-thirds of consumers have abandoned a digital banking application at some point—so every minor improvement counts.

2. They push users to activate quickly

Signing up is only step one.

Top neobanks test personalized nudges or small incentives (like a $5 bonus for a first deposit) to encourage actual usage. This approach ensures users don’t stay dormant.

Data from fintech experiments has shown that once new account holders make their first successful transaction, they’re far more likely to continue using the app.

3. They prioritize retention above all else

Engagement isn’t just a nice-to-have—it’s directly tied to revenue.

One expert underscores this by noting that focusing on user retention “is the single most important thing you can do to grow your bottom line.”

In practice, leaders run experiments on everything from personalized notifications to gamified loyalty programs, discovering which tactics keep users coming back.

4. They cross-sell by targeting the right audience at the right time

Whether it’s savings accounts, premium tiers, or specialized credit options, successful neobanks experiment to find the perfect moment to introduce new features.

Rather than a blanket promotion, they might show a tailored prompt (“Move your idle balance into a high-yield vault!”) only to users who’ve built trust by making multiple transactions. This data-driven approach consistently lifts adoption rates.

5. They build trust with transparency and support

Neobanks lack the physical reassurance of a branch, so the best use product design to convey security. They might test placing a visible “FDIC-insured” label or adding 24/7 live chat in the app’s main menu.

Small experiments like this help customers feel safer—one of the main reasons individuals switch from traditional banks is confidence that their money is protected.

Conclusion: data-driven insights power neobank success

Leading neobanks don’t just guess what works; they refine every touchpoint using user feedback and rigorous testing. Whether it’s cutting onboarding friction, speeding up activation, or ensuring long-term trust, they rely on continuous experiments to guide key decisions.

By adopting this same approach, emerging neobanks can uncover what resonates best—and scale more efficiently in a competitive market.

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