May 18, 1995, was the day when Wells Fargo American bank first offered customers internet banking. This was the first time any physical bank shifted online. Since then, almost 27 years have passed, and now around 2.5 billion users across the globe are actively using online banking services. Mobile banking development is a great need in the fintech industries. If you are eager to know more about the topic and process, you are at the right place and can get all the related information here. We will cover all the issues from the initial, what are mobile banking apps to how you can get one.
What is Mobile Banking?
Mobile banking is a compressed version of all the banking services and is available in the form of a banking mobile application. The requirement is the user has to download the respective mobile application from the app store. Users can perform various functions when they create their user profile on this platform, such as fund transfers, checking passbook/account balances, booking tickets, making payments, and much more.
- One should have two most important things: using a mobile banking application, a smartphone, and a stable internet collection.
- It gives the customer the ability to make banking transactions at any location at any time.
- Customers can also access the required details from the sms inquiry.
- The mobile banking application also sends push notifications for timely updates, discounts, and deals.
Market Stats related to the mobile banking application
According to the 2023 mobile banking apps, there are around 5.22 billion unique mobile users worldwide. Bank of America continues to be the industry leader with the most mobile app users, around 30 million. The value of the payments made using the mobile application reached around $503 billion in 2020 and is constantly increasing. Thus making a mobile banking application can make a good profit for the banks.
The Significance of Mobile Banking Applications in Today’s Digital Age
The popularity of mobile banking applications came during the pandemic when people were required to transfer money to one another without touching or getting in contact. However, the developers must put a lot of effort into mobile banking app development to put all the services required by the customer from a bank. Talking about mobile banking applications acts as a bridge between customers and banks to access the services they want at their fingertips. Mentioned below are some of the benefits that a user can get.
1. Instant Transaction
This is one of the plus points of the online banking application. You cannot make the transaction outside the bank hour if you rely on visiting a bank branch. Using a mobile application, you can instantly transfer the funds irrespective of the time, day, night, or bank holiday.
2. 24*7 Banking Services
This is also a great benefit of the application available on mobile. As a customer, the need for transferring or requirement can be at any time. But through the bank, it is not easy to do at any time. This is where digital service plays a huge role. There is no need to wait, stand in a queue, or delay an urgent transaction due to a bank holiday. You can transfer or receive the amount from anywhere at any time. You can also call it the term all time banking due to this feature.
3. Improved Security in Mobile Banking App
These applications strengthen security through the features like face ids, fingerprint sensors, multiple pins, and multi-factor authentication. This will make the bank more secure from thieves if your phone gets lost or stolen. The bank also allows the features of disabling the application remotely. Some even give the facility of sharing the location to detect the location of the frauds.
4. Availability of All the Banking Services
Through the mobile banking application, you can avail yourself of almost every banking service you can think of. And the plus point is you don’t have to visit the bank branch. For instance, you can make payments, pay bills, get your bank statements, transfer money and create FD in seconds. This reduces the wait time and hustles free instant work.
5. Breaks the Linguistic Barriers
The problem now comes from understanding the app in the languages they are available. So this is also resolved in the mobile applications. Banking apps are available in multiple languages to break the barriers of language difficulty also. This reduces the confusion that you would otherwise face in the operation of the application.
6. Better Control of The Finance
With the help of mobile banking, you can keep a check on your finances. You can also look at the expenditure and the spending and avoid unnecessary expenses. This can be a part of your budget planning. This will also help you in making you better at financial management and saving more money.
7. Better Support
If the customer is having issues with the application, to resolve this, the banks also provide customer care services that can help them. The support team reacts to the calls, chats, and emails that are sent by customers having queries. You can also take their help of them at the time of fraudulent transactions and can get your debit blocked by the bank online itself.
Exploring the Different Types of Mobile Banking Applications
There are various banking apps that are used for different purposes by users. Some of the most common types of them are as follows.
1. Mobile Banking Apps
These are the apps that allow the users to check all the necessary information that they want to check regarding the bank account. For instance, account balances, view transaction history, enable them to pay bills, and many more from their smartphones or tablets.
2. Investment Apps
As the name indicates investment, so the apps allow users to operate them for any kind of investment purpose. The users can buy and sell stocks, mutual funds, and also other investment products from their mobile itself.
3. Digital Wallet Apps
These apps are very much famous among users nowadays as it allows the user to make payment anywhere in an easy way. The users can add credit or debit cards on their mobile phones and can make a purchase online or in-store whenever they want to.
4. Finance Apps
It involves all types of finance-related work like depts, credit, money investments, capital markets, and many more. It also contains loan lending apps that allow the customer to apply for and receive loans directly through mobile apps. There is the requirement of the various forms and documentation of the proofs to qualify for a loan.
5. Money Manager Apps
It is also a type of personal finance app. This allows user to manage their financial accounts, track their spending, and make better financial decisions. These apps allow users to connect their bank accounts, financial accounts, credit cards, and other financial accounts in one place. It also provides the tools and features like budgeting, expense categorization, and investment tracking.
6. All-In-One Super Banking Apps
These types of apps focus on the different kinds of services present on the same platform; similarly, you can make a banking super app from where you can make payments and also all the services that are provided by the bank, including the required services like shopping from there itself.
Current Trends in Mobile Banking: A Look into the Future of Financial Services
There are several developments in the mobile banking application trends that are listed here below:
- Several functions to full-on assistance: Instead of offering some features that can help users in banking, you need to add all the features that can replace a visit to the bank branch.
- Voice payments: this feature can be optimized for payment as the popularity of voice search is increasing.
- Chatbots: instead of communicating with the call center, most people often think of solving the problem just by contacting the bots.
- Enhanced cybersecurity: You must provide secure 2-way authentication and security mechanisms in banking applications such as Face Id, a growing trend in this niche.
- Integration with mobile payment tools: Taking the example of the covid, everyone wants touch-free cash transfer; here comes the feature that made it possible to do so by a scanner.
- Product for advanced users: Since banking applications are so in demand, financial institutions can offer much more customization and all sorts of app features for navigation and control.
- Integration with the third party: You can offer your client a flexible system of discounts when using a partner’s service.
The Business Benefits of Mobile Banking Applications
A well-designed application will give you a vast height to your business. Here are some of them mentioned below:
- Strengthen the brand: It is well apparent that if you are releasing a mobile banking application, then it represents the excellent status of the bank in the market.
- Increasing customer value: It is all about personal communication between users. This means they can feel their importance and significance each time they use the app.
- Providing fast feedback: It is evident that if the bank is quite popular or has thousands of clients, it cannot entertain each of them personally. Providing the application can help in giving the same experience to the user.
- Increasing the communication channel: Mobile apps are an easy way of operating the users’ transaction, so it automatically increases your profit.
Exploring the Key Features of Mobile Banking Applications: From Transfers to Budgeting Tools
1. Mobile Banking App Features for the MVP
The types of features that can be added to the MVP development of the mobile banking application are:
|New card requests, virtual or physical
|This option enables the user to do all the types of work that can be done with the physical card online.
|You can take care of all the expenses and also take a record of that with the help of transaction history details.
|Touch and face id
|This feature is helpful for security purposes as no one else can access the data.
|Using the mobile application enables you to do the transaction at any time of the day.
|The data shared or the history of the transaction is encrypted and secure and cannot be accessed by anyone else.
|You can also manage your expenses with the help of this feature. Add or set a minimum value reminder; after that, you can get a reminder.
|Check account balances
|This feature allows the user to check the bank account balance detail on a daily basis or anytime when they require to do so.
|You can also get exciting cashback in terms of coupons or some amount from the application. These are new things that are added in several apps to encourage the usage of the apps.
|Integration with the wallet app
|You can also integrate the application with apps like Wallet, where you can add money and pay directly by scanning the unique code or registered number of the receiver.
The main feature among them all is the 24/7 access to the service as the user has to use the things at any time and can access them from anywhere. And if people will not get the facility to provide access at any time, then you will definitely lose this battle.
2. Full-Fledged Product Features
So along with the MVP feature, these features will be added to the product at the time of the development of the main application.
|QR code scanner
|This enables users to scan the QR code available by another person or for transactions they can use easily.
|These are the features that are a type of game representation in the apps so that the user does not get bored and finds it easy to access the things. Multiple rewards are also available for the clearing level. If you have done 10 transactions, you can get cash back from the bank.
|This feature enables the automatic payment for a particular task, you can allow the application to automatically cut the amount for the mean. Like regular recharges, electricity bills, etc.
|ATM & bank branch locations
|Add in-app maps to locate the nearest ATMs and bank branches so that anyone can reach them at a time of extreme need without hustle.
|Near-Field Interaction (NFC)
|Banking firms may now utilize a user’s smartphone to conduct cashless transactions due to this relatively new technique. To authenticate the transaction, the ITS OS also demands the client’s fingerprint;
|The mobile payment system is available through most banks’ smartphone platforms, which enable online payments using reputable payment processors like PayPal or Stripe.
Do You Have a Banking Application Idea and Are Searching for Someone to Help You Implement It?
Understanding the Development Process of Mobile Banking Applications: From Idea to Launch
Step 1– Research
Start with the market research for the app process. There are some questions for which you can collect the answer so that you can collect the data.
Who’s your target audience?
What are banking apps popular in the region, and what features make them unique?
Who are the competitors?
What exactly do users expect from banking apps?
You must pay serious attention to the cultural aspect, mentality, and user habits. For example, we are making an application for a particular area or country, and approximately 70% of people use credit cards.so you do not have to think of this feature to put in the application; it has to be present.
Step 2– Prepare the Security Base
This step is the process of differentiating mobile banking applications from others. You have to take care of the fact that you are working with sensitive user data. And that is the reason you should be very careful about all the security bases before development starts, such as :
- Secure password: The passwords should be saved in the database after it hashed.
- Auto Logout: If the user is not active for a particular time, you can set it to 15 minutes; they should be automatically logged out from the application both from the front and back end.
- Data privacy: People who create a banking app should have limited access to users’ tokens, passwords, and other sensitive information. So all the data should be stored in one place.
- Security certificates: Ensure you have an SSL certificate in the case of the web application, and if you are working on the mobile application, then SSL pinning. It ensures the data is private and secure when passed between the browser and web server.
- Secure Authentication: You have to set security such as fingerprint for android and apple keychain for iOS.
- Secure card Info: Implement VGS (Very good security) to display the customer card information.
Step 3– Develop a Prototype
Product success lies in the number of interactions. And building a prototype is one of them. It is the simplified version of the final product. It should include the following:
|1. App logic
|2. App design
|3. App structure
The prototype is far from the final product in terms of functionality, stability, and aesthetics. It allows you to test your idea. You can gather feedback, understand what works and does not, and implement changes accordingly. So always have to build a prototype so that you can validate the usability, design, and functionality of your mobile banking app.
Step 4– Design UX & UI
So in this process, the thighs that are collected during the research, user interviews, and the feedback at the time of the prototype, the design team gets ready and becomes prepared for the work. If you are designing a user-friendly UI design, it is one of the benefits of the mobile banking application. It will also help the user overcome the fear of transferring a significant amount without nervousness. Giving an application that is easy to use can be beneficial.
Step 5– Develop the App
So before beginning the development stage, you must pick the development framework. Things have to be very clear here. Suppose you’re creating a banking application in android or iOS. In that case, you have to opt for native app development instead of reacting native, as native app development is safer than react native.
Regarding the tech stacks, an iOS-based mobile app needs iOS SDK, Swift, and Xcode.
You can use these tools for the mobile banking application in android, such as Java/ Kotlin, Android SDK, and Android Studio.
Step 6– Integrate 3rd Parties
Before launching the leading mobile application, there is one more step to pass, and it’s 3rd party integration. But do you ever think, why do you need one? Using third parties can make 3rd party services a more user-friendly app flow and retain customer retention. When selecting a third-party integration, you must ensure they are stable, actively supported, and secure.
Step 7- Testing Before Release
So this process is essential to implement before the main release. The app should be tested on multiple users before launching to the market to help you know what types of things have to be changed and added. There will be scope for modification in it. Also can understand the problems that users face at the time of use that can be sorted beforehand.
Step 8– Release. Maintain. Improve
So we are finally at the last process of development. You are finally going to launch the main application to the actual audience. That’s good news. But still, your team has a lot of work to do. After releasing it in the market, mobile banking app developers have to now focus on the real difficulties and market scenes. And as the product meets the market, new requirements will appear from the user’s side, and they have to implement new features and timely monitor all the things that can be changed or added per the market growth.
Tech Stack You Need to Create a Banking Application
To make a banking application, you may need some of the technologies depending upon the different platforms you choose.
|Hybrid App Development
|Cordova/ Phone Gap
Looking for a financial app development company?
Hire the best financial app developers from Emizen tech and prepare your application perfectly with professionals.
Top 5 Challenges in Developing Mobile Banking Applications
1. Biometric Authentication
Mobile banking app development is a platform in which you are working with many sensitive data. When working on this type of fintech project, it is necessary to put an appropriate face and touch Id authentication. But if you think it is an easy task, it takes a lot of hard work to make things compatible with android phones. So it can take a lot more time than expected from the process. So take as much time as you want as you are working with the sensitive data of the users.
2. KYC Verification
KYC( Know Your Customer) verification is another challenging part that comes across banking app developers. It verifies the user identity in a particular bank branch. They have to be very careful about the data verification of the users at the time of usage or when they start using your application. The one more challenge that comes here is finding good risk analysts. So you have to look hard to find one.
3. 3rd Parties Integration
This can be a time taking the job as integrating with the third party can be challenging even at some time it is also done at the last moment. In addition, it will delay development. The developers must work with the moked data until the third-party work is not done. And it can also face the 2-3 extra sprints to close the feature. So, you have to plan this accordingly and beforehand.
4. Fast-Changing Requirements
So if you are working on an application based on mobile banking, you will require great patience and flexibility. As the global market is so fast growing in the fintech industry. You have to accommodate the scope of the changes and the updates that must be present in the application after the implementation. So this can be challenging for you at the time of the commission and making of the mobile application.
5. Legal Regulations
This is the last challenge that will come across in developing the mobile application. There are multiple standards that you have to take care of while making a mobile banking application. Here are some of them that you have to take care of: PCI DSS, CCPA, GDPR, and PSD2; these all are implemented in different markets globally.
Cost of Building a Mobile Application for Banking
For example, the price of developing a Banking app can start from $10,000-$300,000, depending on your building approach. The price may change depending on how many features are included in the application. The app’s complexity will determine how much it costs and how much it decreases. The development team you are collaborating with may have a different level of expertise, which can also affect it. Its price will depend on the number of additional integrations, custom designs, or functionalities used.
How AI is Changing the World of the Banking Industry?
1. Enhanced Customer Experience
AI-powered chatbots and virtual assistants provide instant and personalized customer support, addressing queries and resolving issues 24/7. These systems can understand natural language, enabling smoother interactions and improving customer satisfaction.
2. Data-Driven Insights
AI algorithms analyze vast amounts of data to extract valuable insights. Banks can use this information to understand customer behavior, preferences, and trends, allowing them to offer tailored financial products and services.
3. Fraud Detection and Prevention
AI employs advanced algorithms to detect real-time fraudulent activities. It identifies unusual patterns and behaviors, helping banks safeguard customer accounts and transactions from cyber threats.
4. Credit Scoring and Risk Assessment
AI enables more accurate credit scoring by considering a more comprehensive range of factors beyond traditional credit history. This approach benefits individuals with limited credit history and small businesses seeking loans.
5. Algorithmic Trading
Investment banks utilize AI-driven algorithms to make complex trading decisions at unprecedented speeds. These systems analyze market data and execute trades, optimizing investment strategies.
6. Personalized Financial Advice
AI algorithms analyze a customer’s financial situation and goals to offer tailored investment advice and financial planning, making wealth management more accessible to a broader audience.
7. Automation of Back-End Processes
AI automates repetitive tasks such as data entry, document processing, and regulatory compliance, freeing human resources to focus on higher-value activities.
8. Predictive Analytics
Banks use AI to forecast market trends and economic shifts. This insight enables better decision-making in portfolio management and risk assessment.
9. Anti-Money Laundering (AML) Compliance
AI enhances AML efforts by analyzing vast amounts of data to identify suspicious transactions and comply with regulatory requirements more effectively.
10. Voice and Biometric Authentication
AI-driven authentication methods, such as voice and biometric recognition, bolster security by offering more reliable and user-friendly alternatives to traditional password-based systems.
11. Loan Underwriting
AI evaluates loan applications by considering broader variables, leading to faster and more accurate underwriting decisions.
Chatbots for Customer Onboarding: AI-powered chatbots streamline the customer onboarding process by guiding users through required steps, reducing paperwork, and enhancing the overall experience.
These AI-powered platforms offer automated investment advice and portfolio management, catering to tech-savvy investors and those with smaller investments.
13. Sentiment Analysis
Banks use AI to analyze social media and news sentiment related to financial markets and institutions. This information helps them gauge market sentiment and make informed decisions.
14. Regulatory Compliance
AI aids in monitoring and ensuring compliance with ever-evolving financial regulations, reducing the risk of penalties due to oversight.
How to Integrate AI into Banking Applications?
1. Define Objectives and Use Cases
Identify the specific goals you aim to achieve through AI integration. Whether it’s personalized customer recommendations, fraud detection, risk assessment, or chatbot support, clearly outline the use cases you want to address.
2. Data Collection and Preparation
Gather relevant and diverse data from various sources within your bank, ensuring it’s accurate, complete, and well-structured. This data will serve as the foundation for training AI models. Data privacy and security should be prioritized throughout this process.
3. Choose AI Technologies
Select the appropriate AI technologies based on your use cases. This could include machine learning (supervised and unsupervised), natural language processing (NLP), computer vision, and more. Decide whether you want to build your own models or leverage pre-trained models and APIs.
4. Model Development and Training
If building custom models, develop and train them using the collected data. For instance, if you’re implementing a fraud detection system, train models on historical transaction data. Regularly fine-tune models to ensure they remain accurate and effective over time.
5. Integration with Applications
Integrate AI models into your existing banking applications. This might involve collaboration with your development team to incorporate AI functionalities seamlessly. For example, embed a chatbot into your mobile banking app for instant customer support.
6. Testing and Validation
Thoroughly test AI-integrated features to ensure they perform as expected. Test for accuracy, speed, scalability, and security. Use real-world scenarios and edge cases to validate the AI’s performance and make necessary adjustments.
7. Continuous Monitoring and Improvement
AI systems require ongoing monitoring to detect anomalies or performance degradation. Implement mechanisms to track model performance and gather user feedback. Regularly update and improve models to adapt to changing customer needs and evolving data patterns.
How Can Emizen Tech Help You in Mobile App Development?
Here is a fantastic solution to help you overcome the aforementioned difficulties. The best mobile app development company on the market is Emizen Tech. To create engaging and scalable applications that meet all requirements, we combine your ideas with our banking app development services expertise. Our capable and knowledgeable team can assist you in outfitting cutting-edge technology for your business to outperform competitors in the market.
More than half of Emizentech’s 250+ employees are excellent professionals with years of experience. We have experience working on mobile app development projects and have the skills to develop genuinely efficient solutions. You can also get the application customized and add features as per your choice to make it stand out from the crowd.
Final Points to Carry Along, to Opt for The Best!
Making mobile banking software development requires careful planning and attention to detail if users are to have a seamless and secure experience. Developers can produce dependable and practical mobile banking apps by following best practices and keeping up with new security protocols. As the demand for mobile banking rises in the upcoming years, the development of these apps will only become more essential.
You should work with a mobile app development company with the necessary skills and experience to finish your project if you want your application to be successful and generate the expected ROI.
If you know of something fresh and inventive regarding the development of mobile banking applications, please share it in the comments section below.
Frequently Asked Question
Yes, you can discuss your ideas with our team to make a custom mobile banking application. They can assist you while including the things you need in the application. Emizen tech has the most qualified and experienced mobile banking app developers to deal with.
Thus, the making period depends on the features and the customization required by the users. Still, with the support of our well-qualified and experienced mobile banking app developer, you can get your MVP ready in 6 to 8 weeks and proceed with the other process.