How to Create a Mobile Banking App

To use a banking application is one of the key needs for a modern user. Practically every adult has a payment card nowadays and makes payment transactions online. So, the level of mobile banking penetration in the life of British people is 98.41%, followed by such countries as Norway, Iceland and Denmark. As technology develops and innovations are introduced, the needs of users are changing, demands are becoming higher, therefore, the need for innovations and useful applications is growing rapidly every day.

Financial companies and private investors are interested in launching digital products to increase their competitiveness in the market and attract new customers. Here are some useful statistics about mobile banking at the end of 2023:

• 1,75 billion accounts were recorded at the end of last year for using finance online. This is an increase of 12% compared to 2022;
• the turnover of online transactions reached the amount of 1,4 trillion dollars, an increase of 14% in relation to the results of 2022;
• experts predict that the global mobile banking market will grow at a CAGR of 7 billion dollars by 2032. This figure was at $1.5 billion in 2022-end;
• the share of Android users of mobile banking services amounted to 67% last year.

Global mobile banking market trends

Mobile payments and the introduction of online services from banks will grow in the coming years, as it is a convenient and accessible service for the modern man. Thus, the emergence of new functions and technologies with which the developed digital products will be equipped is not excluded. This increases the investment attractiveness of developments and expands the client audience.

The sphere of mobile banking, where the key object is a banking application, is a multifaceted niche. Both developers and users get a wide range of opportunities for effective application.

For example, in 2024, many digital products track the introduction of artificial intelligence functions, new security and encryption algorithms. In addition, it is important to note such unique development trends in the industry as:

• the application of machine learning tools and intelligent bots facilitates personalization of user services and optimized predictive analytics in the context of transactions and financial management;
• SoFi, Chime, Monobank, Revolut and Nubank are prime examples of digital banks that operate online. Users do not need to visit fixed branches to open accounts and obtain payment cards. Now you use the bank from the comfort of your home, on your phone or tablet;
• Integration of blockchain technologies and cryptocurrency transactions - a mobile banking application can combine the sphere of traditional finance and the world of virtual coins. Now buying and selling coins and making transactions becomes much easier and more profitable, as there are no intermediaries in the form of exchanges. Moreover, many companies are now developing crypto banking based on blockchain and traditional financial instruments.;
• introduction of Open Banking technology in combination with the API application programming interface to increase the security of client data and offer users advanced functions;
• voice payments - an innovative option that aims to provide security and increase efficiency in managing personal finances through online banking.

Why mobile business needs a banking app

As the owner of a mobile banking application, the first focus is on ensuring privacy, ease of use and high security of personal data.

According to a McKinsey&Company report, personalization of digital products and their adaptation to individual customer needs can increase revenue by 15%. The logic is simple: the more people use mobile banking, the more they invest, therefore leading to an increase in the profitability of companies that offer consumers such services.

According to analytical data from Google, 6 out of 10 users choose to use a investment application instead of a website. This is due to the following points:

• mobile banking is available 24/7 from anywhere in the world;
• there is no need to connect to a bank to make payments;
• any transactions are made in one or two clicks on a smartphone or tablet;
• the user can not only transfer funds or receive credit to his account, but also make online purchases, book bus, train, airplane tickets, hotel rooms, replenish his cell phone account, etc.;
• Intuitive interface and ease of application management makes it accessible for people of any age, no technical skills are required.

Mobile banking application - key functions and features

A mobile banking application is a special digital product that provides the user with access to their financial account opened with a bank and full functionality to manage their funds. This application is installed on a smartphone or tablet to view the current balance, history of all transactions, send and receive money, and use additional features.

All mobile applications for online banking can be categorized into three main types:

• private transfers (e.g. Venmo, PayPal);
• traditional banking (opening an account in a physical bank branch) with access to a mobile application;
• virtual bank - a full-fledged mobile bank in a smartphone (Revolut, Monobank, Chime and others).

The main features of the mobile banking application for consumers are:

• viewing cash balance;
• sending funds to any bank account;
• receiving money on your account;
• opening an additional payment card;
• applying for a loan;
• paying taxes, utilities and social payments;
• paying fines;
• car insurance;
• booking transportation tickets;
• ordering cash in national or foreign currency;
• payment for purchases in online stores;
• opening deposits;
• savings options;
• communication with technical support and getting help from specialists.

According to statistical reports, now in the world more than 80% of Generation Y people actively use mobile banking, and in the U.S., almost ⅔ of the country's population prefers virtual financial services.

Top mobile banking apps for 2024

Bank of America (BofA) - this app from the world-renowned American bank has been recognized with three regional consumer category awards for providing the best consumer experience design and new digital features for customers looking to buy a car. The feature in question is the auto loan function: the customer can calculate the loan amount for a car purchase and assess their financial capabilities. At the same time, the user's credit rating is not affected in any way.

Also with the help of online banking Bank of America (BofA) users can search for real estate and make their purchase in the mortgage without having to visit a bank branch. The entire procedure is done digitally.

CaixaBankNow - this banking app offers users to manage home, vehicle and health insurance policies online. In addition, customers can use the will drafting function. The bank has won many awards due to the introduction of unique user options that are customized to the needs of the modern consumer.

TD Bank Group is a mobile banking to fulfill all user needs. As the developers point out, their app takes into account all the features of a personalized digital experience to serve all segments of customers' lives. TD Bank Group also integrates AI (Artificial Intelligence) technology that alerts the user of low account balance in advance to prevent financial deficit.

Chime - this online banking service offers its customers to maintain current accounts with zero monthly fees, and there are no fees for term loans. Users can transfer funds and make international transactions without commissions, as well as receive assistance from technical support specialists in real time.

Axos Bank - is a digital product designed for smart business and efficient online management of personal finances. It is oriented mainly towards people who use Apple products. The developers offer their customers convenient functionality for quick banking transactions, loan processing, investing and money planning. Users can also calculate mortgage payments and learn about rate reductions in advance through the integrated RateWatch option.

Discover - developers provide users with a convenient mobile application for efficient management of all banking operations from a smartphone. Clients are exempt from monthly fees for account maintenance and consumer loan processing. The debit card receives 1% cashback, and it is also possible to open a savings account with 4.10% annual interest.

Citi - is a digital banking product through which customers can manage certificates of deposit on favorable terms and without the risk of penalties. It also offers a savings account with a moderate annual interest rate. The developers position their product as a profitable online banking for those who value bonuses and the simultaneous management of several accounts in one bank.

Capital One - is mobile banking for anyone who has never even used a banking card. CLients are offered a wide range of functionality to track credit transactions and achieve their financial goals, access CreditWise score, and easily manage personal funds 24/7.

How to order mobile banking application development

These days, it is possible for any company that actively conducts business and seeks to increase its competitiveness to have its own banking application. Offering users access to mobile banking is an effective way to increase audience loyalty, as well as to increase their income.

Mobile banking app development is a lucrative investment prospect that pays off quickly and takes the company to a new commercial level.

Before starting the development of the application, its concept should be carefully thought out in order to personalize the product as much as possible and make it convenient for the end user.

Among the key characteristics on which the mobile banking application will be based are the following:

• account - that is, the algorithm for registering and logging into the user account. Take into account the implementation of the most secure algorithms for profile activation - a strong and complex password, Touch ID or facial recognition technology. At the same time, the user profile should contain all data, including full name, bank account and card numbers, thus realizing maximum confidentiality and security of information;
• financial transactions functionality - consider support with such technologies as Apple Pay and Google Pay, integration of money transfer system via IMPS and RTGS, so that the client can have access to balance viewing, online bill payment, credit and insurance transactions. It is useful to add options for scheduling recurring payments and opening mobile deposits to the app;
• money management functionality - the client should be able to fully track the history of all transactions and deals, receive an analytical summary with details of each financial operation. Convenience and simplicity in tracking information is the key to high consumer loyalty to a digital product;
• notification mode - any changes in the status, crediting and sending of funds should be accompanied by an appropriate notification. A very important point is notification of suspicious calls and spam messages from fraudsters. Add push-notifications to your application so that the client promptly receives information about bonuses and favorable special offers;
• offline access - this is a mode of using a mobile application in conditions of unstable Internet connection or its complete absence. Even offline, it is important for the client to have access to his account and manage his finances. At the same time, you can implement geolocation tools here so that the system keeps working in any conditions;
• the ability to withdraw cash from an ATM without using a physical card - there are often situations when a person needs cash. With the help of advanced NFC and QR code technologies, you will be able to meet consumer demands for cashing out funds at any time without the need to use a bank card.

In order to increase the appeal of your mobile app and attract new customers, it's worth adding such useful options:

• support for multiple bank accounts and cards - an integrated budget is a handy tool to manage personal finances from a single account;
• new financial services - for example, offering customers interest on accounts or investment analytics;
• interaction with smart devices - you can synchronize the app with a smart watch or headphones so that the customer can receive transaction notifications, view balances, confirm transactions, etc.;
• AI (artificial intelligence) tools - it is an effective technology to provide fast information support to customers 24/7 to get answers to common questions;
• voice recognition feature - customers will appreciate the ability to make contactless payment via voice assistant for quick purchase or money transfer.

Advantages of implementing a mobile app into a business

Using a mobile banking app is not only a useful product for the end consumer, but also a profitable investment resource for commercial activities. And this is due to the following factors:

• user value is enhanced - customers get a unique banking experience with high personalization, and thanks to the wide functionality it is possible to optimize current financial operations and maintain effective money management in the long term;
• strengthening of the company's brand - this is achieved by introducing advanced technologies that are important for users, thus you offer consumers the services they need, thus increasing the recognition of your brand;
• fast and high-quality service - all routine banking tasks are performed in one or two clicks, with the help of technology and digitalization, and the client is always satisfied with the company's services;
• increased competitiveness - achieved by popularizing the development of digital products. The market is developing rapidly and without mobile banking it is difficult to maintain its position in the niche;
• expansion of communication channels - mobile banking app is an additional tool for interaction with clients.

How much does it cost to develop a mobile banking app

As of today, cost of developing a banking app varies in the range:

• up to 40 thousand dollars - the cost of the simplest digital product with basic functionality;
• up to 80 thousand dollars - the cost of a medium-sized application taking into account the customer's needs;
• up to $160,000 - the cost of developing a turnkey mobile banking application that has unique personalization for the company and its target audience, and is equipped with innovative features that set the product apart from its peers.

Conclusion

The digital technology world is rapidly expanding, offering modern users convenient and secure financial management tools. Implementation of mobile banking in business is a new stage in the development of any company, while acting as a key condition for expanding the target audience and increasing customer loyalty. You can order mobile banking application development right now to strengthen your competitive position and open new opportunities for interaction with end users.