How to create a mobile banking app

In the last decade, there has been a significant rise in development of banking applications. Banks and financial institutions have realised that the future of their business depends on building digital products that will be easy to use and accessible from any device.

As you plan your banking application, it’s important to keep up with the trends in the industry. According to Deloitte’s 2018 report, online mobile banking users worldwide will reach 800 million by 2022. The number of banking applications is also increasing. In 2015, there were 2 billion apps available on Google Play and Apple’s App Store combined; that number has increased to 4 billion today. Around 2.551.8 million people will use online banking services by 2024.

In today’s digital age, consumer expectations for mobile banking apps have never been higher. As such, banks and credit unions must adapt to this new reality if they are to remain competitive in the market.

Banking apps overview and current mobile banking trends

Banking apps are the new way of banking and they are changing the financial industry.
In the past, people would go to their bank’s office and conduct all their banking transactions in person. With an increasing number of people using mobile devices for everything from shopping to communication, banks have started offering applications that allow you to do your banking on-the-go.

The global market for mobile banking apps is currently dominated by Europe and North America, which together account for nearly 75% of all online banking users in the world. China is also a major player in this field, with its own unique market dynamics.

While Europe is a stronghold of traditional brick-and-mortar banks that have been slow to adapt to online technologies, North America has seen greater innovation when it comes to mobile banking apps. In addition to US-based companies like Bank Of America or Wells Fargo, Canadian firms such as Sun Life Financial and Canadian Imperial Bank Of Commerce (CIBC) are also investing heavily in their digital platforms.

The main factors driving growth include:

• The rise of corporate payments – This has led to increasing demand for integrated solutions that combine payments functionality with other services such as business intelligence tools or credit card management functions;
• Increasing numbers of millennials entering the workforce – Millennials tend to prefer using technology over traditional methods when it comes time to make financial decisions.

The growing popularity of the internet, the ability of mobile devices to access it and the increasing demand for convenient services have increased the number of banking applications available on mobile phones.

Due to their convenience and security features, these apps are becoming increasingly popular with users who want to be able to manage their finances wherever they may be in the world. However, there are several challenges that must be overcome before they can become widespread.

Benefits of mobile banking application

Mobile banking applications offer numerous benefits for both the bank and its customers. For the bank, mobile banking apps can help improve employee productivity, increase customer engagement and loyalty, increase revenue, and increase customer satisfaction. Customers also benefit from these apps by receiving fast and efficient service.

The mobile app allows users with a smartphone or tablet device access their accounts from anywhere at any time without having to visit a branch or ATM machine as often as before. The convenience factor alone makes this technology extremely popular among consumers who want control over their finances but don’t want the hassle of visiting multiple locations throughout the day just to perform simple tasks like depositing checks or reviewing account balances—or even paying bills.

The mobile apps are also a great way for banks to increase their customer base and streamline operations. Instead of having to maintain an expansive network of branches, the financial institutions can simply focus on providing customers with quality service via their smartphone or tablet device. This saves them money and allows them to offer more competitive rates on loans, interest-bearing accounts, credit cards and other financial products that they offer.

TOP 5 successful banking applications

Each of these apps features a number of key features that make them stand out from their peers:

1. N26

N26 is one of the most successful mobile bank apps in Europe. It has more than 2 million users and has won numerous awards including Best Mobile App, Best Financial Startup and Best Banking Application. The app provides a number of features including:

• An easy-to-use app that allows you to manage your finances on the go.
• A free Mastercard debit card that allows you to use Apple Pay and Android Pay if you have an iPhone or Android device.
• Free money transfers between other N26 users as well as transfers to people who don’t have N26 accounts (for a small fee).

2. Revolut

Revolut is a digital banking application that allows users to manage their money from anywhere using their phones or computers. It offers low fees on exchanges, free international payments and no minimum balance requirements. The app also has features like an automatic budget planner, which helps users better manage their cash flow by automatically transferring funds from one account to another based on preset savings goals; an intelligent spending tracker that tracks all purchases made with the card and lets users know how much they’ve spent in each category; and the ability to see all transactions related to a single card (e.g., debit or credit) in one place within the app rather than having to go through multiple sections within the same bank’s website or call centre system whenever you want more details about something like a particular purchase amount or other specific aspect of your account activity history summary sheet or statement record sheet printout sheet transcript sheet transcript recording sheet. It also allows you to buy cryptocurrency with your linked debit card, send money around the world for free, invest in stocks and more.The app also lets you transfer money between Revolut users all over the world instantly.

3. Bank of America mobile banking app

Bank of America’s mobile banking app is a great place to start for new users. It provides access to checking and savings accounts, as well as credit cards, mortgage loans and other financial products. The app also offers bill pay and other features that allow customers to manage their finances from their phone. Bank of America’s mobile banking app allows customers to pay bills, check balances and transfer funds, as well as view account activity and history. It also features a mobile check deposit tool and a quick launch bar that makes it easy for users to log in without having to enter their login information each time, as well as the ability to deposit checks using their phone’s camera.

4. Capital One

This application is also very popular among its users who can enjoy many benefits from it including mobile deposit, payments and transfers, as well as savings management features. It also provides access to Capital One’s financial advisors for free 24/7 based on your needs or concerns about finances at any time of day or night. *Chase: With this application you can manage your finances in an easy way thanks to its intuitive interface that allows you to view balances in all accounts under one platform; view transactions with just a few clicks; send money securely without having to disclose personal information over email; pay bills instantly using just a few simple clicks on their website.*

5. Wells Fargo

With this app, users can easily monitor their bank accounts from anywhere they want (at home or away) with their mobile devices since it does not require downloading any software onto laptops/computers which makes things easier for people who don’t know how do anything technical related matters such as installing applications etc., since all one needs is simply log-in into their account via browser on any device.

Core features or the “must-haves”

Your mobile banking app should be feature-rich and have everything you need to manage your money easily. Some of the must have functionality features would be:

• A safe and secure way of authenticating yourself, which ensures that only you have access to your account.
• The ability to receive push notifications from the bank, for example if there’s been any suspicious activity on your credit card.
• Customer support available 24/7 via live chat or email address
• Accounts and cards management – For example, you can manage multiple accounts on one platform (or app) using a single login ID. You can also get information about new debit or credit cards that have been issued to you by your bank. This is useful if you want to track how much money is available on them at any given time. Additionally, some apps allow customers to initiate payments from their mobile devices directly through the app itself rather than having to go through an additional step such as entering their payment details into a separate website before initiating a transfer between bank accounts or making purchases online with their card info stored within their phone’s contact list for quick reference (which may include sensitive financial data such as credit score information).
• Geolocation is also a key factor in the success of a mobile banking app. It enables customers to find nearby branches, ATMs or pay bills using their smartphone. In case they lose their debit card or phone, they can also use geolocation to request new cards or deactivate lost credit cards.

Additional functionality

In addition to the basic functionality required by a mobile banking app, you can also add some additional features to make your app stand out.

• Investing options: You can offer investing options as part of your mobile banking app. This will allow users who are interested in investing their money on the go and don’t want to install any additional apps for this purpose.
• Cash back: If your product or service offers cash back rewards, then it’s best if these rewards are automatically deposited into the user’s account once they meet certain requirements (for example, having an active checking account).
• Integration with Google Pay and Apple Pay: Users who love shopping online will appreciate having the option of paying for goods via their mobile phones. By integrating Google pay or Apple Pay into your application, customers will be able to use their cards right away without extra steps such as entering details manually every time they shop online or at a physical store accepting this type of payment method; all they have to do is open up their wallet app on Android devices or Apple iPhones and select which card they’d like used when making purchases online.”
• Fraud detection and anti-money laundering software. These are important to help protect your customers and their funds, which in turn will make them more likely to use your service. It also allows you to provide a seamless experience with minimal customer service involvement.
• Know Your Customer (KYC) features for customer identification, such as biometrics or face recognition. This is another security measure that can help increase trust between you and your customers. KYC solutions help reduce the cost and time required for banks to comply with regulations, while also making it easier for them to onboard new customers without any extra effort on their part. This functionality can be included in an app or accessed via a web browser; either way, it will allow users who want access to advanced services like mobile payments or P2P transfers—and those who need assistance completing paper forms—to verify their identity online quickly and efficiently via webcam or other authentication methods such as fingerprint scanning technology.
• A cost-optimization tool, which helps to plan budgets wisely and to save more. This feature contains analytical functionality that allows you to identify the most expensive cost niches.
• Personalization is a great feature for an application that allows the user to choose a theme, add an avatar, and set other personalization options.
• Chatbot: Chatbots are software programs designed to simulate conversations between humans through text or voice interactions with artificial intelligence (AI). They’re often used in customer service departments as virtual assistants that provide answers to customer questions 24 hours a day, seven days per week and even help schedule appointments with human operators when necessary.
• Bill splitting: This feature enables users who want to split bills between different people at a table pay each other’s shares using their smartphones rather than physical cash or credit cards while still enjoying all the benefits of dining together such as sharing food from one plate etc.)

Technical stack to develop banking application, difference between native, hybrid and cross-platform development

The technological stack of a banking app is also an important consideration. You will need to choose the right technologies for your project and make sure that they are compatible with each other.

• Native – This means sticking with a single platform and developing native apps for it, which means that you have to learn how to code in Objective-C or Swift (for iOS) or Java (for Android). These apps can be built using Xcode, Android Studio, PhoneGap Build or React Native. It also means using Xamarin for cross-platform development if you want to use C# instead of Objective-C/Swift/Java as your programming language
• Hybrid – Also known as “semi”-native because some parts of the application can be written using web technologies like HTML5, CSS3 and JavaScript while others are written using native languages such as Objective-C/Swift/Java (iOS), Java (Android), etc. This usually involves creating a single codebase that runs on both platforms without any changes required when building for each one separately due to its hybrid nature – hence why it’s called “semi”-native!
• Cross-platform development: This approach allows developers to create apps using their preferred framework (React Native, Xamarin) that can run across various platforms including Android/iOS/Windows etc

Main steps for banking app creation

• Understand your market and conduct competitive analysis

As you begin developing a mobile bank application, it is important to conduct marketing research that will identify the leaders and outsiders in your industry, as well as their strengths and weaknesses. This will allow you to create a list of specifications that will benefit both you and your client.

• Understand customer needs

A banking application is a complex product, so to design it developers usually first create a prototype based on information gathered during interviews with the customer. The interview clarifies expectations and needs associated with the product.

• To do so, developers conduct several types of studies: 
  • user story that describe how users will interact with the application
  • jobs stories that focus on specific tasks performed by users;
  • jobs-to-be-done that help to determine the scope of work when designing a product.

• Security

When creating a mobile banking application, it is important to ensure compliance with all regulatory security policies. For example, the GDPR and PSD2 standards apply to such projects. In addition, there are PCI DSS, CCPA and other standards that should be taken into account. To ensure compliance with these requirements, it is necessary to hire experienced experts who can study all applicable laws and identify areas where security must be strengthened.

• Design the UX/UI

Mobile banking application design usually precedes the implementation of business logic and functionality, and a primitively functioning version allows developers to demonstrate the product to clients. Web accessibility is essential in mobile banking applications, as some countries have laws regulating such access. These laws are based on WCAG 2.0 guidelines.

• Choosing a tech stack

Before starting to build a banking application, developers must choose a technical architecture that supports the client’s business goals and budget. Most applications require a cross-platform mobile solution based on standard software tools

• App development

When you approve the initial design and prototype, developers begin developing the application. By regularly providing feedback to the team, you can reduce the number of edits and speed up their work. Depending on the complexity of each stage of development, this process can take from three months to six months.

• Launching and maintaining

Public applications are uploaded to and downloaded from Google Play and the App Store, depending on the operating system for which they were created. At the stage of transferring an app to public access, the costs do not end: you will need to pay for server capacity, support for some technologies, integration with payment gateways, etc.

Public applications are uploaded to and downloaded from Google Play and the App Store, depending on the operating system for which they were created. At the stage of transferring an app to public access, the costs do not end: you will need to pay for server capacity, support for some technologies, integration with payment gateways, etc.

• Improve and update

The application can be supplemented with new functionality as the client’s business develops and market requirements grow. A marketing research should identify what aspects of the application can be optimised.

This process can take anywhere from two months to several years, depending on how much time and money you have and how many iterations of your product you want to create before releasing it. Some startups skip the prototyping stage altogether—or at least they think they do. They might build an app without ever showing it to anyone else; however, this is a bad idea because it’s impossible to know whether people will actually use your product or not unless you try it out in real life (or at least in the form of a prototype).

The best way to make sure that your product will be successful is to build a prototype and show it to potential customers. This allows you to identify any issues with functionality or design before spending all kinds of money building out an app that nobody wants.
If you do decide to skip the prototype stage, then at least make sure that the first version of your app is as good as possible. The more complex your product, the more likely it is that you’ll need to build multiple versions before finding one that people love.

Banking mobile application creation – Challenges to think about

• Security is an important aspect that you need to focus on while developing a mobile banking app. The app should be able to use the right technologies that can protect user data and transactions and to ensure that users bank account is safe. You can use various security measures such as 2FA (two-factor authentication) and fingerprint verification.
• User experience or UX is another main issue when creating a mobile banking application. A good user experience means that customers are satisfied with their interaction with your financial institution, while using the app on their phone or tablet device.

• An attractive interface design is also one of the things you need to consider when creating a mobile banking application for your customers’ needs. This should be designed in such a way that users will find it easy to use and navigate around through it without any difficulties at all times no matter how busy they may be at work/home!
• Scalability refers to how well an application scales up when more users join its network since this type of software usually relies heavily on cloud technology which has great potential but also comes with some drawbacks cost effectiveness – it has higher overhead costs compared with traditional methods used by banks today; performance issues – performance issues occur due to lack of control over hardware resources available inside clouds; security concerns – cloud computing providers have less control over servers than if they ran them themselves so there’s always some element of risk involved when using these services as opposed to running them locally within an organisation’s own network environment.”
• Speed is another important factor in creating a mobile banking app, because if users are facing any problem with speed then they might face problems with other features too such as logging into their accounts or sending money using the chatbot feature. Therefore, make sure that everything runs smoothly and quickly without any glitches or bugs.
• Data privacy is also an important factor while creating a new app because if there are any errors in this section then it might lead to serious consequences like identity theft or fraudulent activities by hackers etc., so it’s better that you take care of data protection before developing the app itself by following proper guidelines set by government bodies like PCI DSS compliance guidelines set by Payment Card Industry Security Standards Council which enforces protection measures against any sort of cyber attacks targeting financial institutions such as banks etc.

FAQ

Conclusion

Every financial institution is different, but we believe that you can use the tips in this blog post to create a successful mobile banking app. Remember that the most important thing is to start small and build up your knowledge base over time—you don’t need to have all of these features at once! Be sure to keep your customers happy with an intuitive interface, good security measures (like biometrics), and timely updates.

When creating a mobile banking app, you should consider both the user experience and your business goals. Your users will need to be able to easily navigate through the app, but it also needs to fit seamlessly into their lives. Remember that not everyone has access to a smartphone or tablet—some people still use feature phones!
You should also make sure that your security protocols are up-to-date with modern standards (like two factor authentication) so that no one can access your information without permission (or at least try really hard). These features will help keep you and your customers safe from cyber criminals who may be looking for an opportunity to steal money from unsuspecting victims.

The key takeaway from this post is that when it comes to banking applications, there are a lot of features that can make or break the application. These features include core functionality, additional features and nice-to-haves. The top five successful banking apps all have these features in common: they’re user-friendly, secure, easy to navigate through and update quickly with new features. Banking apps also have some unique functionality such as ACH transfers or bill pay services which help them stand out from other FinTech solutions on the market today.

Need help with your fintech product? Get in touch with Audax team to evaluate your project and get professional support.