Introduction
Neobanks represent a modern evolution in financial services. These digital-first institutions operate entirely online, offering fast, accessible banking experiences that align with the expectations of today’s users. Many of them are also integrating blockchain infrastructure and digital assets into their platforms, enabling custody, trading, and payments at the intersection of traditional finance and decentralized protocols.
As this sector grows, so does the complexity of its risk environment. Neobanks are now exposed to a dual threat surface. On one side, they face legacy fraud vectors such as identity theft, phishing, and account takeover. On the other, they are increasingly vulnerable to infrastructure-level attacks, including smart contract exploits, DNS hijacking, backend compromise, and unauthorized access through development pipelines.
Most neobanks rely on standard fraud prevention measures. These include Know Your Customer and Know Your Business protocols, anti-money laundering controls, two-factor authentication, and activity monitoring systems. These tools are essential for protecting against front-end abuse, but they do not address the broader systemic risks that arise when Web2 infrastructure and Web3 logic intersect.
For institutions assessing exposure, this gap in protection is material. It impacts not only platform integrity but also regulatory compliance, operational resilience, and long-term reputation. Traditional control frameworks do not extend far enough into the infrastructure or protocol layers. As a result, neobanks are often left underprotected at precisely the points where adversaries now concentrate their efforts.
This blog unpacks the structural risks inherent to the neobank model and why conventional security tools are not enough to mitigate them. It explores how a full-spectrum approach combining smart contract audits, infrastructure testing, continuous monitoring, and maturity scoring - can give fintechs the operational security posture they need. Finally, it highlights how Cantina helps close that gap, offering a modular security architecture built for the realities of Web3-integrated financial systems.
The Expanding Risk Surface of Modern Neobanks
Neobanks operate on a fundamentally different model than traditional financial institutions. They are built for speed, scale, and accessibility, relying entirely on digital infrastructure and often integrating with blockchain technologies. This structure allows them to deliver services quickly and efficiently, but it also exposes them to a broader and more complex risk environment.
Unlike legacy banks, where risk management is typically concentrated within established regulatory frameworks, neobanks are exposed across multiple layers of infrastructure. They are simultaneously responsible for user authentication, payment processing, cloud-based systems, third-party integrations, and in many cases, blockchain-based assets and logic. Each of these components introduces distinct vulnerabilities that require dedicated oversight.
Many of the most damaging incidents affecting modern fintechs are not the result of conventional fraud. They stem from infrastructure-level weaknesses. These include misconfigured access controls, unmonitored cloud services, compromised API credentials, and vulnerable build and deployment pipelines. In some cases, attackers exploit these weaknesses to gain direct access to core systems, bypassing user-facing protections entirely.
For neobanks that integrate with Web3 environments, the attack surface expands even further. Smart contracts can contain logic errors that expose custody flows. Signing systems, if not properly secured, can allow unauthorized transactions to be approved. Wallet infrastructures and token bridges introduce additional points of failure that are often not captured by traditional fraud prevention tools.
The consequences of a security failure at the infrastructure level are significant. Unauthorized transfers, data loss, and full system compromise are possible. The response options are limited, particularly in blockchain-integrated environments where actions cannot be reversed and exposure becomes immediately public.
Institutions evaluating neobanks for investment, partnership, or integration must consider these risks directly. It is no longer sufficient to ask whether a platform has basic fraud detection in place. It is essential to understand whether the neobank has implemented secure development practices, whether its Web3 integrations have been formally reviewed, and whether it has operational protocols for threat detection, incident response, and system recovery.
The growth of neobanking depends on trust. That trust must be supported by a security model that is comprehensive, resilient, and fully aligned with the complexity of the technology environment in which these institutions now operate.
Case Study: VetraFi
VetraFi is a mission-driven fintech startupserving U.S. service members and veterans with high-yield savings, modern financial tools, and infrastructure designed for trust. To strengthen its operational security and build institutional readiness, VetraFi engaged Cantina to launch a structured bug bounty program targeting its web application, API infrastructure, and mobile architecture.
Cantina’s elite researchers submitted findings across key risk categories, including authentication bypass, data exposure, and application-layer vulnerabilities. All reports were triaged and validated through Cantina’s internal review system, ensuring high-signal submissions with minimal overhead for VetraFi’s engineering team.
The program allowed VetraFi to identify and remediate risks preemptively while demonstrating a proactive approach to risk management, further positioning the platform for long-term trust with partners, users, and regulators.
The Cantina Framework: Comprehensive Security for Digital Financial Infrastructure
To address the modern threat environment facing neobanks and fintech platforms, security must evolve beyond conventional security solutions. It is no longer sufficient to protect only the perimeter. Institutions now require security programs that account for every critical layer of exposure - application infrastructure, blockchain integration, operational controls, and system governance.
Cantina delivers a modular, end-to-end security strategy tailored for institutions operating at the intersection of traditional finance and Web3. Core components of this framework include:
Managed Detection and Response (MDR)
- 24/7 real-time monitoring of protocol behavior, infrastructure activity, and operational anomalies.
- Continuous threat detection, alerting, and coordinated response workflows.
- Delivered in collaboration with specialized guilds experienced in cloud security and adversarial behavior.
- Ideal for teams without internal SOC capabilities who require institutional-grade observability and support.
Smart Contract Audits
- In-depth evaluations of protocol logic, upgrade paths, asset custody mechanisms, and governance structures.
- Conducted by subject-matter experts operating within Cantina’s network of security guilds.
- Designed to uncover both critical vulnerabilities and systemic weaknesses under production-level conditions.
Bug Bounty Programs
- Structured, ongoing engagements with Cantina’s vetted researcher network.
- Triage-filtered to ensure only actionable, high-signal submissions reach internal engineering teams.
- A proactive layer of defense to supplement audits and catch issues in live environments.
Web3SOC Scoring
- Formal benchmarking across operational, financial, regulatory, and security readiness.
- Offers clear, verifiable metrics that support internal diligence planning, external audits, and institutional reporting.
- Particularly effective for neobanks preparing for fundraising, partnerships, or compliance assessments.
Together, these capabilities form a comprehensive security architecture. Cantina operates as an embedded security layer, giving institutions and organizations the tools and expertise they need to identify risk, act decisively, and maintain credibility in a high-stakes market.
Security Maturity as Strategic Advantage
Security is no longer just a compliance requirement. For modern financial platforms, it is a core signal of operational credibility. Neobanks that can demonstrate structured, independently validated security maturity are better positioned to scale, attract institutional capital, and form durable partnerships.
Institutional stakeholders now evaluate more than just growth metrics. They assess infrastructure risk, custody architecture, protocol resilience, and the strength of internal controls. A mature security posture shows preparedness. It signals that leadership understands how engineering decisions relate to financial exposure and regulatory obligations.
Proactive platforms are integrating security as a continuous operational function. This reduces incident risk, accelerates development, and minimizes compliance overhead. It also builds trust internally, externally, and across regulatory lines.
As markets mature and institutional expectations rise, security becomes a differentiator. For neobanks operating at the frontier of finance, establishing trust early is not optional. It is foundational.
To learn more about how Cantina can secure your platform, contact our team.