The initial hype of the 2010’s around neobanks has slowed after several prominent fails (Azlo, Synapse Financial Technologies, Volt Bank to name a few), yet market forecasts and recent success stories point towards solid future growth. A recent study from Statista forecasts that the number of global neobank users will nearly double from 215m today to 386m by 2028, with transaction values following a similar upward trajectory. Success stories such as Nubank, Brazil’s largest bank with 80m users and Tyme Bank in South Africa (10m users) highlight the significant potential for neobanks, especially in emerging markets. 

Whilst building neobanks is in line with global banking trends and has high potential rewards, it comes with signficant risks in getting either build setup and/or execution wrong. From having the right mindset and applying deep local cultural understanding to rigorous execution skills, a set of key principles need to be followed to increase the probabilities for long term success.  

Our teams at Amaranth Advisory have gathered knowledge developing several neobanks in emerging markets. Our experiences have given us valuable insights from which we derived core principles relevant to building and scaling neobanks in emerging markets in 2025.  

1. Adopt a Silicon Valley Mindset 

Building a neobank in 2025 should not be viewed as merely creating a financial institution. It should be seen as building a technology-driven business at large scale across different countries/ regions.. The most successful neobanks in the world have embraced a Silicon Valley mindset, leveraging customer-centric development and innovative technology to disrupt the traditional banking model. 

This mindset includes steering neobanks along product growth metrics, focusing on customer acquisition, retention, and iterating on products quickly. Metrics such as customer acquisition cost (CAC), lifetime value (LTV), and monthly active users (MAU) should be viewed alongside traditional banking KPIs. Neobanks should view their product offerings like a tech firm, continuously improving existing and experimenting with new products based on user feedback.  

2. Deep understanding of Local Financial System and Customer Needs 

While building a neobank, it’s crucial to understand the cultural intricacies of the region in which you plan to operate. Every market has its own complexity, and what works in one country might not work in another. In the Middle East, understanding Islamic finance principles, including compliance with Sharia law, and practices like hawala (informal money transfer systems) are essential to designing products and services that appeal to local customers. Additionally, culturally engrained issues such as poor access to loans, low financial literacy, and missing consumer trust are to be considered. 

Regulation and central bank relationships also play a major role in building and shaping neobanks. Different countries have different regulations, and knowing how to navigate these will ensure that your neobank operates legally and avoids potential pitfalls. Having strong relationships with regulators and central banks is critical to ensuring smooth operations and maintaining customer trust. 

3. Jump Start by Partnering with New Digital Private or Public Platforms 

When designing a neobank’s business model and go-to-market strategy partnerships with existing local platforms and services is crucial. Emerging markets have seen substantial disruption by fintechs such as e-wallets and e-payment solutions. In the meantime governments are rapidly digitalizing services such as salary or utility payments and setting up credit scoring systems.  

Exploring potential partnerships with such platforms should be carefully evaluated along criteria such as business model compatibility, integration effort, and potential ongoing target operating model to ideally yield a significant initial customer base and create trust from the start. 

4. Set Up Modularized, Easily Changeable Tech Stack along BIAN framework 

Ability for technology to adapt swiftly to market changes is essential for success. Setting up a modularized tech stack that allows for seamless updates, feature changes, easy configuration of integrations, and scaling will be crucial. Good practice is to start with internationally recognized frameworks such as BIAN when setting up your technologies domain map to guarantee your architecture requirements follow international best practice. 

When selecting a core banking system, make sure you understand local regulatory hosting requirements alongside functional requirements derived from on-the-ground surveys and user interviews. 

5. Excellent End-to-End Project Execution by One Company 

Finally, excellent project execution is essential for success. Building a neobank may take anywhere from 12-18 months from start until go-live and carries significant risks along the way. We have made good experience setting up dedicated strategy & product, tech, org and implementation teams steered by a single company. Employing multiple independent sub-contractors is difficult to manage and oftentimes leads to inefficiencies and conflicts of interest. 

Conclusion 

Building a successful neobank in 2025 requires a combination of the right mindset, cultural awareness, and strategic execution. By adopting a tech-driven approach, understanding your market’s cultural nuances, leveraging existing platforms, and focusing on sustainable operations, you can build a neobank with positive long-term success prospects