Vbank is a digital banking system in Nigeria, it is intended to be user-friendly and convenient to have a complete and effortless banking service for both consumers and businesses. 

Vbank was launched in 2013 to meet the increasing need for new financial services. It provides seamless banking services through the mobile app, which is easily accessible to tech-savvy customers all over the country. 

VBank is an online neobank that provides various financial services through its mobile app. There are no branches, it is entirely an online banking solution. VBank offers savings accounts, money transfers, loans, bill payments, budgeting tools etc. 

In totality, the focus on innovation, customer empowerment and accessibility makes Vbank a major player in Nigeria’s fintech scene. And attracts people and businesses for a digital banking solution that is easy to use. 

Team &technology  

Neobanks are, after all, software businesses and if they can delegate the “financial” work and the regulation to the sponsor banks they’re aligning themselves with, then they can focus on the “tech” behind the banking idea. 

Only a very small number of FinTech companies start with a product in the market by building their software technology, as this is the time to market and cost-prohibitive. 

In that case, it would take more than 20 people and three years to launch the initial release of a bespoke fintech product. Build-to-cost would start at USD 10 million excluding salaries and employee costs. 

Leveraging bank-as-a-service and modular solutions for Neobank success

Bank-as-a-Service and white-label neobank solution providers are the answer to these problems as they require very little capital, and dramatically shorten the time to market. And you get technical knowledge without having to build a costly team. 

When you go this route, you have the advantage of a predeveloped software solution such as a banking back-end, API and if needed a front-end. So you don’t need to reinvent the wheel and build the system yourself and you rent it out from companies that do. All the mainstream neobanks started this way because they decided to be laser-focused on their own mission and value proposition. Rather than finding themselves stuck on developing their core banking technology. 

But there are a few things to take into account when determining if a BaaS solution is for you. Some BaaS solution companies can have your neobank running in days or weeks for only a couple of thousand dollars in upfront investment. However, transaction fees and software license fees are usually more expensive than the alternatives. And you are locked into a system that is not adaptive or competitive and won’t allow you to create great deals for your customers. 

The second is to go for an affordable modular architecture that gives you more options. You can tailor and set up the modules to your preferences and modify and tweak this over time as your neobank grows and becomes more functional. 

Tips for using VBank effectively  

Keep your app updated: Always be sure to have the latest version for new features and security patches. 

Check for alerts: Receive notifications about transactions, deals, and security patches. 

Avoid scams: Don’t give personal information to unreliable sources. 

Earn as much as you can: Get cashback, referral bonuses, and promotions from VBank. 

Neobanks are small businesses that require big size to become profitable. And good customer acquisition methods will take lots of fluidity on the part of you and your software vendor. 

What you need to know

The takeaway here is when deciding on a tech solution for VBank neobank, the things that you need to know are:

Agile and modular

Not only does the software have to be lightweight and modular, but your technology partner should tackle the problems too. By being able to be flexible and have access to the tools you need to scale as a company. 

Vendor agnostic

To be able to replace or integrate more providers into a product is important for scale and growth, therefore you don’t want to be stuck with one vendor’s platform. 

Synergy

Each company should have the same vision and roadmap for the business. And be able to combine both companies’ strengths to build a fintech solution that is the one that’s ahead of the curve.

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