Neobank
A digital-only financial company whose app gives access to accounts and cards, usually provided by a partner bank rather than through its own charter.
What a neobank is
A neobank is a financial technology company that offers accounts, debit cards and other banking features entirely through a mobile app or website. Most US neobanks are not banks. They work with a sponsor bank that holds customer deposits and the banking license, often through a BaaS model.
How it works
The neobank designs the app, brand and customer service. Its partner bank opens the accounts, holds the funds, often in a demand deposit account or pooled account, and oversees compliance. Card programs run on the bank's network membership.
- 01 · PARTNER The neobank signs a program agreement with a chartered bank.
- 02 · BUILD It connects to the bank's APIs for accounts, cards and payments.
- 03 · OPERATE Customers use the app; the bank holds deposits and oversees compliance.
What neobanks offer
- Checking and savings accounts at a partner bank, opened entirely online
- Debit cards and early access to direct deposits
- Small business accounts with built-in invoicing and expense tools
- Credit-building cards and small-dollar credit
- Services for specific groups, such as gig workers or newcomers to the US
Cross River works with neobanks through a single integration with COS, its API-driven bank core, giving access to accounts, payments, card issuing and lending infrastructure. See solutions for neobanks at Cross River.