How to Build a Neobank in 2026: Tech Stack, Licensing and Cost
How to build a neobank in 2026 - the licensing models (BaaS, EMI, bank charter), the core banking tech stack and real cost and timeline ranges from MVP to a licensed bank.
Banking Software Development Company
Banking software development is the process of building digital platforms for financial institutions - from core banking systems and digital banking apps to payment processing engines and open banking API platforms.
Pharos Production is a banking software development company that builds core banking systems, neobank platforms, digital banking apps and payment processing solutions for banks, credit unions, neobanks and financial institutions. The core banking software market is projected to reach $21.61 billion by 2030 at 10.2% CAGR, with cloud-based solutions holding 62% market share. Founded in 2013 with 90+ engineers, Pharos Production delivers Aligned with PCI DSS, SOC 2 and ISO 27001 frameworks banking platforms with open banking API integration. Every project follows our Verified Delivery process - security audit, compliance validation and penetration testing at each sprint.
- 6+ banking projects
- Yes PCI DSS aligned
- 8+ years in banking
SOC 2 Type II
GDPR
ISO 27001
NDA Protected
Aligned with these frameworks. Audit reports and certifications available on request.
- 15+ FinTech projects
- 12+ years in business
- 101 Clutch reviews
Compliance-ready development for regulated financial services with end-to-end security
Key facts:
Pharos Production develops digital banking platforms, core banking modernization and open banking integrations. Aligned with PCI DSS and SOC 2 principles. 6+ banking software projects including payment systems and KYC/AML platforms. Last reviewed: July 2026. Editorial policy.
What is banking software development?
Banking software development is the process of building digital platforms for financial institutions - from core banking systems and digital banking apps to payment processing engines and open banking API platforms. Unlike general enterprise software, banking applications must comply with PCI DSS for payment data, PSD2/PSD3 for open banking, KYC/AML for customer verification and ISO 20022 for payment messaging. Common banking project types include neobank platforms, core banking modernization, real-time payment systems, fraud detection engines, wealth management tools and Banking-as-a-Service (BaaS) infrastructure.
Reviewed by Dmytro Nasyrov
Founder and CTO
23+ years in software development. Led banking platform projects for banks, neobanks and payment processors. Aligned with PCI DSS and ISO 27001.
How our banking practice differs
Our banking practice ships PCI DSS-aligned digital banking and core modernization, not skinned generic apps. Senior engineers, integrations with Mastercard and Visa rails, ISO 20022 message flows, SWIFT connectivity, KYC / AML pipelines via Jumio or Onfido and Strangler Fig migrations off legacy cores. Stack covers Java, Kotlin, Postgres, Kafka and Temporal for transactional workflows aligned with PCI DSS and Basel Committee guidance. We do not ship banking apps without ledger-grade audit trails, dual-control change management or row-level reconciliation. We routinely advise clients NOT to build core admin systems custom when Temenos, Mambu or Thought Machine wins on regulatory approvals. See our FinTech development services.
Banking build insights
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Banking solutions we build
Pharos Production applies its full-cycle software development expertise to deliver tailored solutions for banking businesses.
Digital Banking & Mobile Banking Platforms
Pharos Production builds comprehensive digital banking platforms with account management, transfers, card controls, budgeting and secure multi-factor authentication. We use API-first architecture because it enables open banking compliance and seamless third-party integration. Our cross-platform mobile development team delivers native-quality banking apps for iOS and Android with biometric login, real-time notifications and offline transaction queuing.
Core Banking System Modernization
Core banking modernization migrates legacy monolithic systems to cloud-native microservices architecture. The SaaS-based core banking market is projected to reach $50.62 billion by 2033. We recommend modular modernization - replacing one domain at a time (payments, lending, accounts) - because it reduces risk compared to big-bang replacement. Pharos Production delivers core banking migration with scalable back-end architecture, event-driven design (Apache Kafka) and ISO 20022 messaging compliance.
Payment Processing & Real-Time Transaction Systems
Real-time payment processing platforms with sub-second settlement, multi-currency support and regulatory compliance. Instant payment value is projected to grow from $22 trillion (2024) to $58 trillion by 2028 (ACI Worldwide). Pharos Production integrates FedNow, SEPA Instant, SWIFT and ISO 20022 messaging for banks, neobanks and e-commerce platforms requiring PCI DSS-aligned payment infrastructure.
Loan Origination & Credit Management Platforms
Automated loan origination platforms that digitize the entire lending lifecycle - application intake, KYC verification, credit scoring, underwriting and disbursement. AI-powered credit models reduce approval times from days to minutes while improving default prediction accuracy. The global digital lending market is projected to reach $20.5 billion by 2027 (Allied Market Research). Pharos Production builds loan origination systems with automated decisioning, bureau integration and regulatory-compliant document generation.
Fraud Detection & Anti-Money Laundering (AML) Systems
AI-powered fraud detection and AML systems that monitor transactions in real time using machine learning models trained on behavioral patterns, device fingerprinting and network analysis. We use ML over rule-based engines because fraudsters adapt faster than static rules. Insurance fraud costs over $80 billion annually in the US (FBI). Pharos Production builds fraud engines for banking, FinTech and insurance platforms with graph-based anomaly detection and real-time scoring.
Wealth Management & Robo-Advisory Platforms
Robo-advisory and wealth management platforms with automated portfolio construction, rebalancing and tax-loss harvesting. The robo-advisory market surpassed $2.5 trillion AUM in 2024. Pharos Production builds wealth platforms with modern front-end dashboards, risk profiling engines and integration with market data providers (Bloomberg, Refinitiv). See also our FinTech solutions for broader financial platform development.
Open Banking & API Integration Platforms
Open banking API platforms that enable secure data sharing between banks, FinTechs and third-party providers. PSD2 regulation mandates API access to account data. PSD3 expands scope to include real-time payment access. Pharos Production builds PSD2/PSD3-compliant open banking APIs for banks and FinTech companies with account information services, payment initiation and consent management.
Customer Onboarding & KYC Verification Systems
Digital onboarding platforms that automate identity verification, document validation and risk assessment for new banking customers. Banks using digital onboarding report 60-70% reduction in abandonment rates compared to branch-based processes (McKinsey). Pharos Production builds KYC onboarding with liveness detection, OCR document extraction, sanctions screening and automated risk scoring compliant with KYC/AML regulations. The same compliance-first approach applies to our healthcare software development where patient identity verification follows similar patterns under HIPAA.
Banking CRM & Customer Engagement Solutions
Banking-specific CRM platforms that unify customer data across channels (branch, mobile, web, call center) for personalized financial product recommendations. Banks with unified customer views achieve 15-25% higher cross-sell rates (Accenture). Pharos Production builds banking CRMs with next-best-action engines, event-triggered campaigns and 360-degree customer profiles integrated with core banking and transaction data.
Treasury Management & Liquidity Optimization Systems
Treasury management systems for real-time cash position monitoring, liquidity forecasting and automated fund allocation across accounts and currencies. The treasury management software market is projected to reach $7.4 billion by 2030 (Fortune Business Insights). Pharos Production builds treasury platforms with SWIFT MT/MX messaging, multi-bank connectivity, cash pooling optimization and regulatory capital reporting.
| Solution | Key capabilities |
|---|---|
| Digital Banking & Mobile Banking Platforms | Mobile Banking App Development Online Banking Web Portal Digital Wallet & Contactless Payments Integration +4 |
| Core Banking System Modernization | Legacy Core Refactoring & API Enablement Cloud-Native Core Banking Migration Modular Banking Microservices Architecture +4 |
| Payment Processing & Real-Time Transaction Systems | Real-Time Payments & Instant Transfer System Card Issuing & Acquiring Processing Platform ISO 20022 Payment Messaging Engine +4 |
| Loan Origination & Credit Management Platforms | Digital Loan Application Portal Automated Credit Scoring & Risk Assessment Engine KYC & Document Verification Workflow +4 |
| Fraud Detection & Anti-Money Laundering (AML) Systems | Real-Time Transaction Fraud Detection Engine AML Rule-Based & AI Behavior Monitoring Suspicious Activity Reporting (SAR) Module +4 |
| Wealth Management & Robo-Advisory Platforms | Automated Portfolio Recommendation Engine Client Risk Profiling & Suitability Assessment Module Investment Account Management Dashboard +4 |
| Open Banking & API Integration Platforms | PSD2/Open Banking API Gateway Secure OAuth2 & Token Management System Bank-FinTech Integration Sandbox +4 |
| Customer Onboarding & KYC Verification Systems | Digital Identity Verification & OCR Extraction Biometric Face & Liveness Detection Automated KYC/AML Screening Workflow +4 |
| Banking CRM & Customer Engagement Solutions | Unified Customer Profile Management Cross-Sell & Upsell Recommendation Engine Campaign Management & Targeting Platform +4 |
| Treasury Management & Liquidity Optimization Systems | Cash Position Tracking & Forecasting Engine Liquidity Risk Management Dashboard Interbank Payments & Clearing Module +4 |
What is banking software development?
Banking software development is the process of building digital platforms for financial institutions - from core banking systems and digital banking apps to payment processing engines and open banking API platforms. Unlike general enterprise software, banking applications must comply with PCI DSS for payment data, PSD2/PSD3 for open banking, KYC/AML for customer verification and ISO 20022 for payment messaging. Common banking project types include neobank platforms, core banking modernization, real-time payment systems, fraud detection engines, wealth management tools and Banking-as-a-Service (BaaS) infrastructure.
Banking software market in numbersThe core banking software market is projected to reach $21.61 billion by 2030 (10.2% CAGR, Grand View Research). Cloud-based solutions hold 62% market share. Instant payment value is projected to grow from $22 trillion (2024) to $58 trillion by 2028 (ACI Worldwide). The BaaS market is expected to surpass $73 billion by 2034 (Allied Market Research). 58% of banks now prioritize AI-integrated cores (Temenos, 2025).
Pharos Production banking delivery metricsAverage time to MVP for banking platforms is 14 weeks. Production infrastructure uptime averages 99.95% under SLA. Zero PCI DSS-alignment gaps across delivered projects. The Verified Delivery process uses 2-week sprints with security audit, compliance validation and penetration testing at every iteration.
Custom banking software vs vendor core banking
| Factor | Custom Banking Software | Vendor (Temenos, FIS, Finastra) |
|---|---|---|
| Core modernization | Incremental Strangler Fig migration, zero downtime | Big-bang replacement, months of parallel running |
| Payment rails | Custom FedNow, SEPA Instant, ISO 20022 integration | Pre-built connectors, limited rail coverage |
| Compliance | Configurable PCI DSS, PSD2/PSD3, KYC/AML per jurisdiction | Standardized compliance modules |
| Open banking APIs | Custom API gateway, any third-party integration | Vendor marketplace integrations only |
| AI/ML capabilities | Custom fraud detection, credit scoring, risk models | Pre-built AI features, limited model tuning |
| Scalability | Cloud-native, auto-scaling per service | Vertical scaling, capacity planning required |
| Cost model | One-time development + hosting | Per-account or per-transaction licensing fees |
Pharos Production recommends custom banking software for institutions processing 100K+ daily transactions, launching digital-first products or requiring deep integration with legacy core systems that vendor platforms cannot accommodate.
How to choose a banking software development company
1
Core banking domain expertise. The team must understand ISO 20022 messaging, real-time payment rails (FedNow, SEPA Instant) and open banking APIs - not just generic web development.
2
PCI DSS and SOC 2 compliance track record. Ask for BAA agreements, security risk assessments and audit history. Banking software without proven compliance is a regulatory liability.
3
Published banking case studies with measurable outcomes. Transaction throughput improvement, migration success metrics, compliance audit results - not just technology descriptions.
4
Cloud-native migration experience. The team should have migrated legacy monolithic cores to microservices using patterns like Strangler Fig with zero-downtime cutover.
5
Security-first development methodology. Every sprint must include security audit, penetration testing and compliance validation - not just a final security review before launch.
6
Post-launch SLA with carrier-grade uptime. Banking platforms need 99.95%+ uptime, real-time monitoring, automated failover and 24/7 incident response for mission-critical financial systems.
Technologies
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Core Banking Modernization Platforms
Cloud-native systems that efficiently process transactions, manage accounts and support real-time banking operations at scale.
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AI Fraud Detection Engines
Machine learning tools are designed to detect suspicious transactions and help prevent financial crime.
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Digital KYC and Identity Verification Systems
Automated onboarding solutions that authenticate user identities using biometric data and document scanning.
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Open Banking APIs
Secure interfaces that allow banks to share data and connect with third-party FinTech services.
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Blockchain Settlement Networks
Distributed ledger systems enable transparent and tamper-proof transaction clearing.
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Risk Management and Credit Scoring Models
AI-driven algorithms that evaluate borrower profiles and determine real-time credit risk.
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Mobile Banking App Frameworks
Platforms that deliver secure, high-performance mobile solutions for retail and corporate clients.
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Payment Gateway and Real-Time Processing Engines
Technologies that facilitate instant payments, digital wallets and cross-border financial transactions.
Our Expertise
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Pharos Production has partnered with Kimlic to develop a blockchain-based Know Your Customer (KYC) and digital identity platform. This platform ensures that user verification is secure, reusable and privacy-preserving across Web3 and FinTech ecosystems. Users can verify their identity once and then securely share proof with multiple services without exposing sensitive personal information. Built on cloud-native infrastructure and equipped with real-time data pipelines, Kimlic provides compliant identity verification at scale while allowing users to retain control over their data.
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Pharos Production has partnered with Pleenk to build a secure, scalable payments platform for fast transactions, fraud prevention and seamless integration with digital products. The platform processes payment flows in real time while maintaining high levels of security, transparency and reliability for both businesses and end users. Built on cloud-native infrastructure and an event-driven architecture, Pleenk provides a strong foundation for modern digital payments.
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Pharos Production partnered with Nextcheck to replace outdated, manual onboarding with a secure, automated KYC/AML platform. Built on AWS, Kubernetes, Istio, Elixir, RabbitMQ, PostgreSQL and NextJS, the platform provides real-time biometric and document verification, risk assessment and compliance reporting. Since 2019, Nextcheck has reduced onboarding time by 60%, cut manual labor by 70% and expanded to support thousands of checks at once. Today, it powers global banks, FinTechs and crypto firms with a cloud-native, regulation-ready, growth-oriented compliance platform.
Engineering insight
How we modernized a core banking system without downtime
When a mid-size bank needed to migrate from a 15-year-old monolithic core banking system to cloud-native microservices, the core challenge was zero-downtime migration while processing 500K+ daily transactions. Our approach: the Strangler Fig pattern - building new microservices alongside the legacy system, gradually routing traffic from old to new modules. Each banking domain (accounts, payments, lending) was extracted into an independent microservice with its own database, connected via Apache Kafka event streaming for eventual consistency. We implemented a dual-write adapter that kept both systems in sync during the transition period, with automated reconciliation checks every 60 seconds. The migration took 8 months across 4 phases, with each phase verified in production before proceeding. Zero data loss, zero downtime, 40% improvement in transaction processing speed. Explore our open-source libraries on GitHub.
| Metric | Before Pharos | After Pharos |
|---|---|---|
| Architecture | 15-year-old monolith, single database | Cloud-native microservices, database per domain |
| Transaction speed | Baseline processing rate | 40% improvement in transaction throughput |
| Deployment frequency | Quarterly releases (high risk) | Weekly deploys per service, zero downtime |
| Daily transactions | 500K+ on legacy system | 500K+ on cloud-native with auto-scaling headroom |
| Data consistency | Single DB, tight coupling | Event-driven (Kafka), 60-second reconciliation |
| Migration risk | Big-bang replacement planned | Strangler Fig: 4 phases, each verified in prod |
Metrics from a core banking modernization project for a mid-size bank. Migration completed in 8 months with zero data loss and zero downtime.
Verified Delivery: our banking development process
Every sprint produces PCI DSS-audited, compliance-validated code. Security findings loop back into development - not after production deployment.
Reviews
Independent reviews from Clutch, GoodFirms and Google - verified client feedback on our software projects
Based on 323 verified client reviews
FinTech
Thanks to Pharos Production Inc.'s efforts, the client's platform scalability increased by 40%, and transaction processing speed improved by 35%. The team also mitigated all critical security vulnerabilities. Moreover, they utilized Jira, Slack, and Zoom for effective project management.
Measurable results
110+
Applications delivered
200+
Clients worldwide
5/5
Clutch rating (2026)
13+
Years in production
Banking Software Development Benchmark 2026
Proprietary research report based on analysis of banking platform projects delivered by Pharos Production. Dataset covers core banking, digital banking apps and payment processors. Methodology (Pharos Verified Delivery): aggregated delivery metrics with 6-18 months post-deployment monitoring per project. PCI DSS alignment reviewed quarterly. Full report with detailed methodology available on request.
14 weeks
Average time to MVP for banking platforms
99.95%
Production infrastructure uptime under SLA
0
PCI DSS-alignment gaps across delivered projects
$60K-$800K+
Project cost range depending on scope
500K+
Daily transactions supported per platform
4
Compliance frameworks (PCI DSS, SOC 2, ISO 27001, GDPR)
Banking trends shaping 2026
Key technology shifts that impact how Pharos Production architects banking software for clients.
Core Banking Cloud Migration
The SaaS-based core banking market is projected to reach $50.62 billion by 2033 (Future Market Insights). Banks are shifting from monolithic replacements to progressive, modular cloud-native modernization. Pharos Production migrates legacy core banking to microservices architecture incrementally without service disruption.
AI-Powered Banking Operations
58% of banks prioritize AI-integrated cores for compliance automation, predictive risk analytics and real-time fraud detection (Temenos, 2025). Pharos Production builds AI banking agents for fraud detection, KYC automation, credit scoring and regulatory reporting.
Real-Time and Instant Payments
Instant payment value is projected to grow from $22 trillion to $58 trillion by 2028 (ACI Worldwide). FedNow and SEPA Instant adoption accelerates. Pharos Production integrates real-time payment rails with ISO 20022 messaging and instant settlement reconciliation.
Banking-as-a-Service (BaaS)
The BaaS market is expected to surpass $73 billion by 2034 (Allied Market Research). Non-banks launch financial products through licensed banking APIs. Pharos Production builds BaaS platforms with account APIs, card issuance, payment processing and compliance-as-a-service.
Open Banking and PSD3 Evolution
PSD2 mandates make API-first architecture mandatory. PSD3 expands scope to include real-time payment access. Pharos Production builds PSD2/PSD3-compliant open banking APIs with account information and payment initiation services.
Digital Identity and Biometric Authentication
The EU digital ID wallet launches in 2026. Decentralized identity and biometric verification enable seamless onboarding. Pharos Production integrates biometric authentication, liveness detection and verifiable credentials into banking platforms.
Pharos Verified Delivery
FinTech projects follow Pharos Verified Delivery with compliance-first additions: discovery maps PCI DSS, SOC 2 and jurisdiction-specific requirements before code, build includes regulatory architecture review at every milestone, production readiness includes penetration testing and audit-readiness validation.
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Phase 01 / 04 Paid Discovery
2-4 weeks- Technical validation
- Architecture proposal
- Scope refined estimate
-
Phase 02 / 04 Iterative Build
2-week sprints- Working demos every sprint
- CTO review at milestones
- ADRs documented
-
Phase 03 / 04 Production Readiness
- Monitoring and alerting
- Security audit Pen test
- Runbooks and rollback
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Phase 04 / 04 Support
Ongoing- Security patches
- Performance tuning
- 4h SLA response
Pharos Verified Delivery applied to 110+ production applications since 2013
When custom FinTech is not the answer
We decline roughly 30% of RFPs we receive. Forcing a bad fit costs both sides 3-6 months and damages outcomes.
Projects we decline
- Standard payment acceptance where Stripe Checkout would work in 2 days
- Simple lending where existing loan origination platforms cover 90% of needs
- Crypto products without legal counsel on jurisdiction analysis
- Banking-as-a-service partnerships where buying access from a sponsor bank is faster than building
- Compliance-only projects without budget to fix what assessment finds
When we recommend the alternative
We have recommended Stripe over custom payment processors, Plaid over custom bank integrations and Persona over custom KYC. Custom FinTech is the right call when you need unique workflows, regulatory configurations or competitive differentiation that packaged products cannot provide.
Read before you commit
How to Choose a FinTech Development Company →
Vendor evaluation guide covering compliance experience, payment processing depth, banking API integration and red flags specific to financial software development.
Key takeaways
- Banking software development requires PCI DSS, PSD2/PSD3, KYC/AML and ISO 20022 compliance - not just standard web development skills.
- The core banking software market is projected to reach $21.61 billion by 2030 (Grand View Research). Cloud-native and modular modernization outperforms big-bang replacement.
- Custom banking software eliminates per-transaction vendor licensing fees and enables deep integration with legacy core systems via the Strangler Fig migration pattern.
- A mobile banking MVP starts from $60,000-$120,000 and takes 4-6 months. A full core banking system ranges from $200,000 to $800,000+ (10-18 months).
- Every Pharos Verified Delivery banking sprint includes security audit, PCI DSS validation and compliance testing - not just a final review before launch.
Limitations and considerations
- Core banking integration requires mapping proprietary message formats (ISO 8583, SWIFT MT/MX) that vary per institution - expect 4-8 weeks of interface analysis before development begins.
- Regulatory approval timelines for new banking features (PSD2 licensing, e-money authorization) are controlled by national regulators and can take 3-12 months independent of software readiness.
- PSD2/Open Banking APIs from different banks have inconsistent implementations, rate limits and uptime SLAs - aggregation layers need per-bank error handling and fallback logic.
- PCI DSS Level 1 certification requires quarterly ASV scans and annual on-site audits. Scope changes (adding card data flows) trigger re-certification cycles that affect release timelines.
- Legacy core banking systems often lack modern APIs. Screen-scraping or batch-file integrations introduce latency and fragility that cannot be fully eliminated without vendor cooperation.
Choose your cooperation model
Pharos Production works in three engagement models, from a focused PoC to a production MVP to a full enterprise platform, with typical budgets from $10,000 to $400,000+ depending on scope and complexity.
PoC
Proof of concept
Focused validation of your riskiest technical assumption with a working spike and a clear build-or-pivot recommendation.
$10,000 - $30,000
Popular choice
MVP
MVP build
Production-ready first version with core flows, real backend and the integrations to onboard first paying users.
$45,000 - $130,000
Enterprise
Enterprise platform
Full-scale build with architecture, DevOps, QA, security and long-term evolution.
$140,000 - $380,000+
Prices vary based on project scope, complexity, timeline and requirements. Hourly rates range from $35 to $75 depending on role and seniority. Contact us for a personalized estimate.
Important:
Banking software projects are subject to financial regulations including PCI DSS, PSD2/PSD3, KYC/AML and local banking authority mandates. Pharos Production delivers software development services - banking licenses and regulatory approvals are the responsibility of the client institution. All price estimates are for software development only.
Interaction models for staff augmentation, dedicated teams and outsourcing
Request staff augmentation
Need extra hands on your software project? Our developers can jump in at any stage - from architecture to auditing - and integrate seamlessly with your team to fill any technical gaps.
Popular choice
Hire dedicated experts
Whether you're building from scratch or scaling fast, our engineers are ready to step in. You stay in control, and we handle the code.
Outsource your project
From first line to final audit, we handle the entire development process. We will deliver secure, production-ready software, while you can focus on your business.
| Model | Best for | Team setup | Budget range |
|---|---|---|---|
| Staff Augmentation | Existing teams needing extra engineers at any project stage | 1-2 weeks | From $5,000/month |
| Dedicated Team Popular | Long-term projects requiring full ownership and control | 2-4 weeks | From $15,000/month |
| Project Outsourcing | Full-cycle development from idea to production launch | 1-2 weeks | $10,000-$80,000+ |
An approach to the development cycle
The Pharos Delivery Framework divides every project into 2-week sprints. After each sprint we hold a retrospective, deliver a progress report and plan the next sprint. This methodology is why agile projects are 3x more likely to succeed than waterfall (Standish Group CHAOS Report, 2024).
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Team Assembly
Our company starts and assembles an entire project specialists with the perfect blend of skills and experience to start the work.
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MVP
We'll design, build and launch your MVP, ensuring it meets the core requirements of your software solution.
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Production
We'll create a complete software solution that is custom-made to meet your exact specifications.
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Ongoing
Continuous Support
Our company will be right there with you, keeping your software solution running smoothly, fixing issues and rolling out updates.
187+ technologies
Banking technologies, tools and frameworks we use
Our engineers work with 187+ technologies across blockchain, backend, frontend, mobile and DevOps - chosen for production reliability and performance.
Our engineers work with 187+ technologies across 10 categories: Frameworks, AI, Blockchains, DevOps, Clouds, Databases, Brokers, Tests, Programming, UI/UX.
- Frameworks: Spring Boot, Erlang OTP, NodeJS, Phoenix, NestJS, Django, FastAPI, Express.js, React, Next.JS, Svelte, Angular, Vue.js, Remix, Astro, Nuxt.js, iOS, Android, Flutter, React Native, Capacitors, Ionic, Swift, Kotlin, Java, Dart
- AI: OpenAI GPT, Anthropic Claude, Google Gemini, Meta Llama, Mistral AI, Cohere, Ollama, xAI Grok, LangChain, LangGraph, CrewAI, AutoGen, Hugging Face, PyTorch, TensorFlow, scikit-learn, LlamaIndex, Keras, XGBoost, LightGBM, OpenCV, spaCy, ONNX Runtime, Pinecone, Weaviate, Qdrant, Chroma, pgvector, Milvus, FAISS, MLflow, Weights & Biases, DVC, Kubeflow, AWS SageMaker, Azure ML, Google Vertex AI, NVIDIA Triton, Airflow, Ray Serve, vLLM, OpenAI Agents SDK, Claude MCP, Semantic Kernel, Haystack
- Blockchains: Ethereum, TON, Corda, Tron, Hedera, Stellar, Consensys GoQuorum, Solana, Arbitrum, Binance Smart Chain (BSC), Sei, Celo, Hyperledger, MultiversX, IOTA, Polkadot, Aptos, Neo, Flow, Algorand, Avalanche, EOS, Optimism, Polygon, Cosmos, Sui, Tezos, Ontology, Fantom, NEAR Protocol, VeChain, Base, IPFS, Amazon Managed Blockchain, Amazon QLDB, IBM Blockchain, Oracle Blockchain
- DevOps: Kubernetes, Terraform, Docker, Istio, Prometheus, Grafana, Jenkins, ArgoCD, Ansible, GitHub Actions, GitLab CI, Pulumi, Datadog, New Relic, Vault
- Clouds: Amazon Web Services, Azure, Google Cloud, Cloudflare, Vercel, DigitalOcean
- Databases: PostgreSQL, MySQL MariaDB, Redis, Cassandra, Neo4J, MongoDB, Elasticsearch, Solr, Ignite, ClickHouse, TimescaleDB, DynamoDB, Supabase, CockroachDB, ScyllaDB
- Brokers: Kafka, RabbitMQ, Flink, Apache Pulsar, Amazon SQS, Amazon SNS, NATS
- Tests: Postman, Appium, Cucumber, Selenium, JMeter, Cypress
- Programming: Solidity, FunC, Rust, GoLang, Elixir, Erlang, C++, Java, JavaScript, TypeScript, Scala, Python, C#, .NET, PHP, Ruby, Dart, SQL
- UI/UX: Figma, Zeplin, InVision, Sketch, Miro, Marvel, Balsamiq, Photoshop, Illustrator, XD, After Effects, Corel Draw
AI and Machine Learning
LLM Providers 8
AI Frameworks 15
LangChain
LangGraph
CrewAI
AutoGen
Hugging Face
PyTorch
TensorFlow
scikit-learn
LlamaIndex
Keras
XGBoost
LightGBM
OpenCV
spaCy
ONNX Runtime
Vector Databases 7
Pinecone
Weaviate
Qdrant
Chroma
pgvector
Milvus
FAISS
MLOps and Infrastructure 11
MLflow
Weights & Biases
DVC
Kubeflow
AWS SageMaker
Azure ML
Google Vertex AI
NVIDIA Triton
Airflow
Ray Serve
vLLM
AI Agent Tools 4
Blockchains
Private and Public Blockchains 33
Ethereum
TON
Corda
Tron
Hedera
Stellar
Consensys GoQuorum
Solana
Arbitrum
Binance Smart Chain (BSC)
Sei
Celo
Hyperledger
MultiversX
IOTA
Polkadot
Aptos
Neo
Flow
Algorand
Avalanche
EOS
Optimism
Polygon
Cosmos
Sui
Tezos
Ontology
Fantom
NEAR Protocol
VeChain
Base
IPFS
Cloud Blockchain Solutions 4
Amazon Managed Blockchain
Amazon QLDB
IBM Blockchain
Oracle Blockchain
DevOps
DevOps Tools 15
Kubernetes
Terraform
Docker
Istio
Prometheus
Grafana
Jenkins
ArgoCD
Ansible
GitHub Actions
GitLab CI
Pulumi
Datadog
New Relic
Vault
Clouds
Clouds 6
Databases
Databases 15
PostgreSQL
MySQL MariaDB
Redis
Cassandra
Neo4J
MongoDB
Elasticsearch
Solr
Ignite
ClickHouse
TimescaleDB
DynamoDB
Supabase
CockroachDB
ScyllaDB
Brokers
Event and Message Brokers 7
Kafka
RabbitMQ
Flink
Apache Pulsar
Amazon SQS
Amazon SNS
NATS
Tests
Test Automation Tools 6
Postman
Appium
Cucumber
Selenium
JMeter
Cypress
UI/UX
UI/UX Design Tools 12
Figma
Zeplin
InVision
Sketch
Miro
Marvel
Balsamiq
Photoshop
Illustrator
XD
After Effects
Corel Draw
Trusted & Certified
Partnerships and awards
Recognized on Clutch, GoodFirms and The Manifest for software engineering excellence
19+ industry awards
Banking software glossary 8
- Core Banking System
- The central platform that records accounts, balances, deposits and loans and processes transactions in real time. Every other banking feature connects back to the core, so replacing or integrating with one is the largest technical task in most banking builds.
- Neobank
- A fully digital bank that operates without physical branches, delivering accounts and payments through a mobile app. Many neobanks launch on a partner bank license and core, then move to their own infrastructure as they scale.
- Banking License
- The regulatory authorization that lets an institution hold deposits and offer banking services. Obtaining one involves capital requirements, governance reviews and long lead times, which is why many FinTechs start under a sponsor bank instead.
- KYC (Know Your Customer)
- In banking, KYC is the identity check performed when a customer opens a deposit account and refreshed over the relationship. It covers document verification, beneficial-ownership and sanctions screening and underpins the bank anti-money-laundering program.
- Ledger
- In core banking, the ledger is the authoritative double-entry record of every account balance and transaction. It must stay immutable, auditable and always in balance, and is reconciled daily against payment networks and regulators.
- ACH (Automated Clearing House)
- A batch electronic network for moving money between bank accounts, used for payroll, bill payments and transfers. ACH is low cost but settles in batches over hours or days rather than instantly.
- Open Banking
- Open Banking obliges a bank to expose account and payment data through secure APIs when a customer consents. For the bank it means building compliant endpoints, consent management and strong customer authentication to regulated standards.
- Sponsor Bank
- A licensed bank that lets a FinTech offer regulated banking products under the bank charter. The sponsor handles compliance and holds the license while the FinTech owns the customer experience, which speeds time to market for neobanks.
FAQ
Last updated:
Reviewed by:
Dmytro Nasyrov
(Founder, Solutions Architect)
Answers to common questions about banking software development, digital banking and compliance.
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Pharos Production builds PCI DSS-aligned digital banking platforms with real-time transaction processing, multi-factor authentication and scalable back-end architecture designed for high-throughput financial workloads. See also our FinTech and Insurance solutions.
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Pharos Production builds native and cross-platform mobile banking apps with biometric login, real-time balance updates, P2P transfers and card management - all secured with end-to-end encryption.
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Pharos Production builds fraud detection engines with ML-based anomaly detection, real-time transaction scoring and automated case management. Our risk management platforms integrate with existing core banking systems via secure APIs.
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Banking project costs depend on regulatory requirements and integration complexity. A mobile banking app MVP may start from $60,000-$120,000, while a full core banking system can range from $200,000 to $800,000+. Request a free estimate.
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A mobile banking app MVP typically takes 4-6 months. A full core banking system may require 10-18 months including compliance testing and security audits. Pharos Production uses agile development with 2-week sprints.
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Pharos Production follows PCI DSS for payment data, SOC 2 Type II for infrastructure security, PSD2/open banking standards and regional banking regulations. Every banking platform includes automated compliance monitoring and audit trails.
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We do not build consumer-facing neobank apps without a licensed banking partner. Our focus is the technology layer - core banking systems, transaction processing, compliance automation and API banking platforms. For banking-as-a-service without your own license, platforms like Synapse or Unit offer faster time-to-market.
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Banking software must pass regulatory audits (OCC, FDIC, PRA) at every milestone, not just at launch. Our 2-week sprints include compliance checkpoint reviews and PCI DSS validation at every iteration.
This catches regulatory gaps before they become costly. Agile projects are 3x more likely to succeed (Standish Group, 2024).
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Evaluate five factors: (1) core banking domain expertise including ISO 20022 messaging, real-time payment rails (FedNow, SEPA Instant) and open banking APIs, (2) PCI DSS and SOC 2 compliance track record, (3) published case studies with measurable outcomes for banks or neobanks, (4) experience with cloud-native migration from legacy monolithic core banking and (5) a methodology that includes security and compliance validation at every sprint.
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Core banking modernization progressively migrates capabilities to cloud-native microservices while keeping legacy systems running - lower risk, faster ROI. Full replacement swaps the entire core in a big-bang migration - higher risk but cleaner architecture.
58% of banks now prioritize AI-integrated cores. Pharos Production recommends modular modernization for most institutions, replacing one domain at a time (payments, lending, accounts) while maintaining integration with the existing core.
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Yes. AI agents in banking autonomously detect fraud in real time, automate KYC/AML compliance checks, process loan applications and manage customer service operations. Gartner predicts 33% of enterprise software will include agentic AI by 2028. Pharos Production builds multi-agent banking systems with human-in-the-loop patterns for high-risk operations.
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Banking-as-a-Service (BaaS) enables non-bank companies to offer financial products through licensed banking infrastructure via APIs. The BaaS market is projected to surpass $73 billion by 2034. Pharos Production builds BaaS platforms with account opening APIs, card issuance, payment processing, KYC/AML and regulatory reporting - enabling fintechs and platforms to embed banking without obtaining their own charter.
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