Developing the Best Mobile Banking Apps

The development of mobile banking apps aims to deliver secure, user-friendly applications that allow customers to manage their finances easily, from making payments to checking account balances on mobile devices.  Over the years, these services have evolved from basic web apps and SMS banking to sophisticated, feature-rich, and best mobile banking apps. The 2021 FDIC National Survey of Unbanked and Underbanked Households revealed a significant increase in mobile banking usage among banked households, rising from 15.1% in 2017 to 43.5% in 2021. By 2021, it became the most common method for accessing bank accounts, reflecting a growing reliance on digital banking tools.

In the following guide, we’ll explore the essential features, important development steps, key benefits,  and the challenges encountered in mobile app development within the banking sector. We aim to provide insight into the process of building mobile app for bank that can thrive in the highly competitive market.

Need for the Best Online Banking App

Goodfirms recently conducted an online survey to explore the current market, scope, and future of mobile banking apps. An impressive 52.8% of the survey participants expressed their satisfaction with the services provided by these apps. This high level of satisfaction reflects the significant impact that online banking apps have on users’ lives. Respondents reported carrying out a wide range of financial functions through their mobile, including bill payments, funds transfers, checking bank statements, and even drafting checks. Let us look at the solid reasons for customers switching to mobile banking apps.

 1. 24/7 Support and Access to Your Bank Account

Mobile banking apps allow access to your bank account and services 24/7, offering unparalleled convenience. This contrasts with traditional bank branches, which have set opening times, closing times, lunch breaks, and national holidays that may disrupt services.  Features like mobile check deposit and bill pay ensure that tasks can be completed outside normal banking hours, allowing users to schedule payments, set alerts, and avoid late fees, even during late-night hours or busy schedules. This round-the-clock accessibility and support significantly enhance user convenience and efficiency.  

2. Time Saver and Cost-Effective

Some of the best mobile banking apps in the market are both time-saving and cost-effective, providing instant access to essential banking services without the need to visit a branch. With just a few taps, users can check balances, view recent transactions, or transfer funds, all from their mobile devices. The convenience of banking from anywhere eliminates transportation costs, and many services that incur fees at branches or ATMs are free on mobile platforms. Additionally, they provide real-time alerts for suspicious activities and offer easy access to transaction records, helping users manage budgets and prepare for taxes more efficiently. 

3. Quick Transactions

Online banking apps enable speedy transactions by allowing users to instantly transfer funds, pay bills, or deposit checks without visiting a bank. For example, with Zelle or Venmo integrated into many banking apps, users can send money to friends within seconds. Similarly, features like mobile check deposit save time by letting users snap a photo of their checks to deposit directly, eliminating the need for physical bank visits.

4. Enhanced Personalization

Mobile apps for banks offer easy-to-use tools to help manage money conveniently. Users can effortlessly stay in control of their finances thanks to customizable alerts and notifications available on many platforms. These alerts can remind users about low balances, and upcoming due dates, or notify them about transactions over a certain amount. These apps often include automated savings features, such as automatic transfers to savings accounts. With these tools, users can set everything up themselves and benefit from smooth and hassle-free banking.

5. Advanced Security Measures

Modern banking apps utilize various top-level security mechanisms to ensure the safety of their users’ accounts. These include measures such as end-to-end encryption, two-factor authentication, and biometric verification. With features like card locking and multifactor authentication, users can take swift action in the event of any issues to prevent potential financial losses. Multi-layered security measures ensure that no sensitive data can be compromised.
 

5 Must-Have Features for the Best Mobile Banking App

1. Peer-to-Peer Transactions

 Integrated peer-to-peer payment services are a must-have feature of mobile banking platforms that allow seamless money transfers between individuals. This enables users to quickly and securely send and receive funds by searching for the recipient’s phone number, email address, or username. Leading platforms like Zelle and Google Pay offer this convenience, eliminating the need to visit ATMs or deal with cash when repaying someone. 

2. Financial Planning and Management Tools

 Tracking the money is now easier with powerful budgeting and expense-tracking tools. See exactly where the money is coming from and going to with real-time breakdowns of your income, bills, and spending. Set savings goals, budget targets, or pay off debts, and track your progress with easy-to-read charts. This feature is a must-have for any mobile banking app.

3. Digital Wallet Integration

 With support for popular platforms like Apple Pay and Google Wallet, internet banking apps now offer a range of payment options to meet evolving user preferences. According to Statista, mobile wallets account for roughly half of global e-commerce payment transactions in 2023, indicating their growing popularity. This trend is expected to continue, with a projected CAGR of 14.9 percent between 2023 and 2027, highlighting the importance of digital wallets in facilitating seamless, contactless, and secure payment experiences.

4. Subscription Management

 Managing subscriptions directly through the banking app provides spending oversight. Users can easily track, edit, or cancel subscriptions that are charged to their accounts, simplifying financial organization without relying on third-party subscription apps.

5. ATM/ Branch Locators

 Using GPS, the best online banking app can help customers find the closest ATM and provide important information when needed. This makes it easier for clients to withdraw money or perform other transactions. The GPS integration allows filtering by distance and location, making it convenient for users to find the best options nearby.
 

How To Develop an Online Banking Application?

1. Conduct Market Research and Competitor Analysis

Before diving into fintech, understand user needs through market surveys, analyze competitor apps, and engage in user interviews. Anticipate future user demands by studying market trends. Extensive research is crucial to creating a successful product. Define the target audience, develop a unique product proposition, and gather requirements. Justify the product’s value, estimate profits, and ensure data-supported viability. 

2. Define the features of the product

It is important to plan carefully before investing a lot of money in developing the best mobile banking app for your business’s financial needs. First, list all the essential functions, create a prototype, and gather user feedback. Use this feedback to improve the design and ensure a great user experience. Think strategically and prioritize features for a scalable product. If you’re unsure, seek advice from your banking app development company. 

3. Ensure Regulatory Compliance and Provide Security.

In the banking industry, protecting users’ sensitive information and financial data is essential. To achieve customer trust and comply with regulations, banks should use top-notch encryption and authorization technologies, conduct regular security updates, and engage cybersecurity experts to assess vulnerabilities.  

4. Design a User-Friendly UI/UX

In digital banking, a clear and simple design is crucial for a user-friendly experience. Key elements include intuitive navigation, consistent design, responsive layouts, clear calls to action, and accessibility for all users. Consistency across all digital assets is important, and testing different designs can help identify the best one. Ensuring ease of use for everyone is essential for customer satisfaction and retention. 

5. Write the Code and Launch the First Version

 It’s essential to have a strong codebase, especially when dealing with third-party finances daily. Only professional developers should be involved in mobile banking software development to avoid potential reputational damage and fines. Thorough testing before launch is crucial. Consider using third-party services to avoid building everything from scratch. Security measures and compliance checks are paramount for banking app development

 6. Release Updates

After you receive the initial feedback from users, you will need to be involved in providing support for your app. You should also work on adding more features to your list of tasks, improving the app, and making sure to keep in touch with your users. This will help you make your app better while staying connected to your target audience

 Mobile Banking Development Challenges and Solutions

 1. Security and Data Privacy

Challenge: Mobile apps for banks handle sensitive user information, such as personal and financial data, making them prime targets for cyberattacks, fraud, and data breaches.
Solution: Implement multi-layered security measures such as encryption, biometric authentication (fingerprints, facial recognition), multi-factor authentication (MFA), and regular security audits to ensure data integrity and compliance with financial regulations (e.g., GDPR, PCI DSS). 

2. Regulatory Compliance

 Challenge: Keeping all financial services compliant requires navigating a complex landscape of rules and regulations.
Solution: Services should undergo regular audits to ensure compliance with globally recognized open banking standards, meeting all legal requirements.

3. System Downtimes

Challenge: Service interruptions can undermine trust and disrupt user experience.
Solution: Banking apps can maintain continuous operations by investing in a scalable cloud infrastructure.

4. User Experience Consistency

 Challenge: It’s important to provide a consistent user experience across different devices. This can be challenging due to variations in operating systems and hardware capabilities.
Solution: Using frameworks that enable the creation of banking applications on various platforms ensures a consistent user experience, regardless of the device used. It would be best to use cross-platform development frameworks like Flutter or React Native to create banking apps and test them on different devices. 

Bottomline

Developing the best mobile banking app for fintech presents opportunities for new businesses and established companies to enhance their market position. However, selecting the right features, ensuring high-quality development, and choosing a trusted vendor is critical. Companies may face challenges in meeting security standards and choosing the right features. To ensure success and data protection, businesses should engage experienced developers who have worked on similar fintech projects. Partnering with the right development services provider is crucial for a successful app.
The expert team at Travancore Analytics specializes in cross-platform and native app development to ensure a seamless digital banking experience for users. 
 
Connect with us to deliver an innovative mobile banking solution.