The banking industry is facing tough competition from Fintech companies. This has led to changing business models, new regulations, and disruptive technologies. Keeping up with innovations and delivering secure banking services are significant challenges for many financial businesses.
Addressing these challenges needs a shift to a mobile-first strategy. This is where banking app development can help. It allows banks and credit unions to offer better accessibility to banking services with improved security.
However, executing these projects requires strategic efforts. This guide will help you strategize banking app development and deployment along with key features that you can develop.
Why are Customers Moving to a Mobile Banking App?
Many banking apps offer ease of managing transactions, investing, and budgeting. It helps banks streamline operations and ensure better customer experience. However, these are not the only reasons customers choose mobile banking.
Here are other reasons:
24/7 Support: With the mobile banking app, banks and financial institutions can provide 24/7 support to customers, especially if there are fraudulent transactions or other issues.
Automate Regular Payments: A mobile banking app helps automate payment of bills like electricity, cable, water, and phone bills. This improves the transactional flow for banks, ensuring customers can execute secure bill payments.
Enhanced Security: Mobile banking apps use passwords or PINs to protect sensitive financial information. These apps provide an extra layer of security with multi-factor authentication mechanisms for customers.
Ease of Use: Mobile banking apps are designed to be very simple and easy to use, making them accessible to a broad audience.
All of these benefits depend on what type of banking app you build. It needs to align with your financial business needs and address customer issues.
Take the First Step Towards Your Mobile Banking App!
Here are different types of mobile banking apps with features and functions:
Business banking apps handle payroll, business loans, and other financial tasks. Some of the popular ones are QuickBooks and Xero.
Retail banking apps allow customers to check their balances, make money transfers, and bill payments. Most banking apps fall into this category.
Mobile wallet apps store users’ financial information and enable digital transactions without physical debit or credit cards. Both Google and Apple offer such services through Google Wallet and Apple Pay.
Loan and credit management apps provide loan services by evaluating user’s credit scores. Some of the popular loan and credit management apps are Chime and DebtManager.
Peer-to-peer (P2P) payment apps offer services like sending and receiving money using a name, email, or phone number. Each user’s account is linked with another user’s account. Key examples of such apps are Zelle and Venmo.
Budgeting and savings apps provide services like tracking expenses, budgeting, and saving money. Some examples of such apps include Mint and YNAB.
Stock trading and investment apps provide stock investment, bonds, or mutual funds services.
Cryptocurrency and blockchain banking apps allow users to buy, sell, and manage digital currencies.
Over time, different banking apps have emerged, each designed to provide various financial services in one place. However, developing these types of apps is still a challenge. It needs a planned process similar to wealth management software development, which involves design thinking, prototyping, and deployment automation.
Mobile Banking App Development Process: A Detailed Breakdown
1. Research and Planning
When developing a mobile banking application, one of the most critical steps is thoroughly analyzing the digital banking market and competitors. This research helps to create an effective strategy.
Identify key details of the banking market , such as the customer’s requirements and security issues customers face. The result should be a detailed plan for the next step of developing the mobile banking app.
For example, consider the ease of transactions when planning about mobile banking application development. How quickly users can access financial information and complete the transaction can improve the banking experience. Identifying your customers’ scenarios and pain points will help you optimally plan the banking app development.
2. UI/UX Design Prototype
Every app development starts with an idea, and a prototype helps visualize that idea by outlining the design and functions. Designers leverage design thinking to create a wireframe that outlines how users interact with the app.
This helps the app cater to different user pain points, ensuring easy access to financial services.
Experienced app designers begin with simple wireframes and layouts for the app’s user interface (UI). Further, designers create prototypes to test the designs and improve them incrementally.
Here are some essential recommendations for UI/UX Design Prototype:
Prioritize accessibility and consider innovative approaches like cultural differences.
Ensure that the navigation matches the structure. Make sure your Fintech solution is user-friendly and easy to use.
Use details to make your app visually unique. Make sure typography, icons, color scheme, and design elements reflect your brand and differentiate your product from competitors.
3. Establishing Strong Security Measures
Building a reliable fintech app to establish data security is crucial for banks in the current era of rising cybersecurity threats. Here are some techniques and compliances to develop strong security measures.
Secure Password: All passwords must be stored in the database using a hashed technique.
Auto Logout: if users are inactive in the app for more than 10 minutes, there should be an automatic logout system.
Data Privacy: Developers should have limited access to users’s sensitive information. All data must be stored in secure platforms like 1Password or Okta.
Security Certificates: Ensure you have security certificates like SSL and SSL pinning. These docs certify that all data between the server and browser remains private and secure.
Secure Authentication: For Android banking app development, set up and use fingerprint security on Android devices. For iOS, utilize Apple KeyChain for secure authentication.
Secure Card Info: implement a card management platform to show the customer’s card info.
Payment Card Industry Data Security Standard (PCI DSS): Your banking app must comply with security rules when storing, processing, or accessing users’ financial information.
Gramm-Leach-Bliley Act (GLBA): Ensure you inform customers about information-sharing practices to protect sensitive data.
Federal Financial Institutions Examination Council (FFIEC): Make sure your banking app complies with FFIEC guidelines and standards for financial data security.
Anti-Money Laundering (AML) Regulations: You must develop systems to spot and report suspicious activities that could indicate money laundering or fraud. To effectively implement these security measures and stay compliant, consider partnering with a trusted cybersecurity services provider that understands the unique needs of fintech applications.
4. Development and Testing
The development process helps build a well-structured architecture, design realistic user journeys, build an intuitive interface, and select the right tech stack.
While building a solution, mobile banking app developers must blend the UI with various functions and external tools like Fintech APIs, payment gateways, and cloud services.
Creating a Minimum Viable Product (MVP) is one of the best ways to start. This MVP should be built with your banking app’s essential features and design elements.
Why only basic features?
An MVP lets you quickly test whether your idea works without spending a lot of money on a fully developed app.
Post-development, the banking mobile app development requires testing. During the QA process, the app undergoes rigorous testing to ensure functionality, security, and performance. This process combines automated and manual testing.
QA engineers perform testing and check Functionality and performance, Peak performance, Integrations, and System components.
Here are some test case examples for a basic complexity banking app.
Validate account balances are updated after transactions.
Test different types of transactions like deposits, withdrawals, and transfers.
Verify that transactions are done within defined timeframes.
Test the application’s response to suspicious login activity.
Verify that sensitive data is masked or hidden.
5. Banking App Deployment
Launch the app in the marketplace with all the requirements to avoid rejections. The most popular marketplaces are Google Play Store, Apple App Store, and Microsoft Store. Some basic requirements are to prepare screenshots and all relevant information about the app.
It’s essential to check that the app performs well and meets the store’s requirements. While deploying the app, follow the guidelines provided by the marketplaces. Apps must also adhere to all user privacy policies, such as how they collect data and ask for permissions properly. They should also avoid unsafe practices that could put user data at risk. In today’s digital world, where transactions are totally handled online, enabling privacy and data security is also important. Also, this becomes essential in the case of neobank app development, where all things are done virtually. As neobanks operate without any physical entity, in such a case, the app marks the main touchpoint, making security, compliance, and a seamless user experience for the users.
6. Maintenance and Support
This phase includes maintenance of the app and monitoring performance. It also includes regularly updating features to ensure the app is compatible with the latest OS security guidelines.
Banks can quickly spot new threats by closely monitoring app performance and user activity. This proactive strategy allows for rapid response and keeps customer information safe. It helps identify unusual patterns or behaviors, enabling banks to act immediately and defend against emerging cyber threats.
Here are recommendations by our team:
Regularly check for security updates and keep documentation up to date.
Provide 24/7 customer support when the resources are minimal, and consider integrating generative AI tools.
To engage users, offer personalized content, financial tips, and in-app rewards. Track user engagement to see what works well and what needs improvement.
After exploring the stages of building a mobile banking app, let’s examine its features.
Must have Mobile Banking Features
Here are the best mobile banking app features, categorized into Basic and Advanced.
Basic Mobile Banking Features
User Identity: Users can access secure authentication methods such as a unique username, password, or pin for login and transactions.
Account Management: This feature allows users to customize their accounts, which helps them set savings goals, create investment plans, and perform repeat payments.
Balance and Transactions: Real-time access to accounts like checking balances, making transactions, or bill management. Also, users can access transaction history, withdrawals, loan payments, purchases, and money transfers.
Deposits and Withdrawal: This feature allows transactions and money withdrawals via the app without visiting the branch.
Loan Management: Provide a service to manage all the required processes, such as applying for a loan, checking approval status, reviewing loan information, determining repayment schedule, determining interest rates, and sending timely reminders via the app.
Bio Authentication: Add biometric security options as an extra layer of security, like face ID and touch ID, to transactions and login processes for specific devices.
Customer Support: Provide a 24/7 support system through mail and chat. Adding a FAQ section for repetitive queries increases the user experience.
Digital Wallets: This feature replaces the physical and digital wallets and will help users perform contactless transactions. The development process behind this convenience, particularly understanding the security protocols, is essential for anyone interested in learning how to create a digital wallet.
Advanced Mobile Banking Features
Cardless ATM Access: Provide a one-time authenticator to withdraw money. This feature eliminates the need for physical ATM cards, reducing costs and time-saving.
Integration of AI/ML: Use AI/ML to personalize user requirements, such as personalized support through a chatbot, offers, notifications, and budgeting recommendations.
Investing: Manage every investment through mobile banking apps. The app also allows you to buy a new investment or sell an existing one anytime.
Geolocation: Including a branch or ATM locator feature can help users quickly find locations. It can also offer personalized offers and promotions based on the user’s location.
Cash Back: With the possibility of cashback, users can use the same bank service for transactions and goods. This minor feature or promotion can be a great starting point for your loyalty program.
QR Scanner: This feature provides a quick and secure mobile payment service. Users can send money to friends or family by scanning a QR code linked to their bank account.
Bill Splitting: This feature allows friends and family to split expenses, which can help them manage their finances.
Buy Now, Pay Later (BNPL): This feature allows customers to use credit and buy stuff while they pay the credited amount in small installments or specific amount with interest within stipulated time.
Let’s look into some popular banking apps and get insights into the features they offer to strategize banking app development.
List of Top Mobile Banking Apps
The mobile banking sector has many success stories, each showcasing a different approach to tackling challenges and meeting user needs. Here are some popular banking apps,
Bank of America: Bank of America’s mobile app is considered the best mobile app for banking in the United States, offering solution for managing and updating bank accounts. Some of its great features include tracking account activity, making financial transactions, proactive fraud detection, and receiving notifications about your accounts.
Chase: The JPMorgan Chase mobile banking app is an excellent example of top-notch mobile banking. It offers account management, fund transfers, bill payments, and mobile check deposits.
The Ally: This offers a feature-rich and user-friendly mobile banking app that combines traditional banking services with investment options. While many mobile banking apps focus only on banking, Ally provides a complete set of tools for managing personal finances, highlighting the importance of well-rounded banking and finance app development. It is famous for investment activities and has a rating of 4.2.
Discover Mobile: Discover Bank customers can use the Discover Mobile app to manage their deposit accounts and credit cards in one place. The app is easy to use and has features that help customers manage their finances effectively. It has a user rating of 4.4.
Capital One: Capital One’s mobile banking app has received high praise and top ratings for its user-friendly design and wide range of features. In 2022, J.D. Power ranked it the best mobile banking app, highlighting its intense user satisfaction and rich functionality.
However, the big question remains the cost of developing a mobile banking app.
Mobile Banking App Development Cost
The cost of developing a mobile banking app depends on several factors, such as the technologies chosen, time spent, platform, team location, and app complexity.
Here is a rough estimation of the cost of developing a banking app.
The cost of creating an app also depends on its processes and features. Here is a rough estimation of the time to build a mobile banking application.
Research Analysis: A team of experts conducts an in-depth analysis to determine how the app will work. You will receive user flows, diagrams, and wireframes. The analysis will cost $2400 to $3200+.
UI/UX Design: A complete design, according to the analysis, will be provided by an expert team of designers, which will cost around $15,000 to $25,000+.
Development: A team of app developers will complete all the app’s analysis, design, and development using the right technology and framework. Also, an admin dashboard will manage the app’s functionality. It will cost around $200,000 to $280,000+.
How can Excellent Webworld help you with Mobile Banking App Development?
The process of developing a banking app needs proper planning. It starts with analyzing customer requirements and goes all the way to deploying the app on different app marketplaces.
However, the development phase presents significant challenges due to its complexity. If not executed properly, project costs can exceed the planned budget, resulting in a solution that doesn’t provide the value your bank needs.
Fortunately, as a top banking app development company, Excellent Webworld offers customized solutions that align with your business goals. With our fintech app development services, you get,
Ideation consulting
High-quality coding expertise
Robust security base
Integration of AI and ML technologies
24/7 tech support.
So, contact us now and transform your banking app development to accommodate an ever-changing market.
It depends on the complexity of the app and the features included. However, depending on its complexity, a banking app will take 4 to 14 months to develop.
Data security is critical in banking app development because mobile banking apps deal with sensitive financial information and are often targeted by cybercriminals.
Mayur Panchal is the CTO of Excellent Webworld. With his skills and expertise, He stays updated with industry trends and utilizes his technical expertise to address problems faced by entrepreneurs and startup owners.
