One of the primary beneficiaries of ongoing digitalization is the finance industry. People can use mobile devices to manage their bank accounts and conduct transactions through mobile banking. Typically, after developing an online banking application, a bank will develop a mobile app.
The pandemic increased demand for remote banking services even more. Cashless and contactless transactions are becoming increasingly popular. In early 2020, there was a 200% increase in new mobile banking users.
The mobile banking market is expected to reach $1,824.7 million by 2026, growing at a 12.2% CAGR from 2019 to 2026. According to reports, nearly one-third of the world’s population already uses banking & finance application, which means that the remaining two-thirds are untapped, and banking mobile app development has significant potential.
So, what does it take to develop a good banking and finance application? Let’s take a closer look.
A step-by-step guide on mobile banking development
Step 1: Conduct research and planning.
Understanding your competitors, the state of the market, development trends, your users, and their needs is critical for developing a unique value proposition/business model.
Step 2: Create and test a prototype.
To bring your concept to life, you must first create a prototype that depicts the app’s logic, structure, and order of design elements, visuals, and content. Furthermore, fixing a design flaw while prototyping is ten times less expensive than making changes during development.
Step 3: Set the stage for security.
The best way to keep your app secure is to incorporate DevSecOps into the development process and work with a team that is familiar with the most common threats.
Step 4: UI/UX Design.
Your app should be user-friendly, secure and transparent, while also delivering a personalized customer experience.
Step 5: Select a technology stack.
Because each project is unique, there is no one-size-fits-all stack for web or mobile banking development. Nonetheless, a well-chosen technology stack will help reduce costs, shorten software development time, and accelerate time to market.
Step 6: Write a code.
You can implement the app with an in-house team or hire an external software development outsourcing vendor. Depending on business requirements, developers may build the entire app infrastructure from scratch or leverage off-the-shelf solutions such as Firebase, Cloudkit, and AWS Mobile Hub.
Step 7: Integrate with third-party solutions.
Data integration best practices provide your app with external features instead of creating them from scratch.
Step 8. Quality assurance.
QA engineers will assist in ensuring that the products meet the specifications and all applicable fintech industry standards throughout the development process. At the end of each sprint or after each feature delivery, your MVP or full-scale product must be tested. The product can be released to a small, controlled group of users after receiving final approval from QA engineers. Their feedback and analytics, as well as stress-testing the servers, will help increase your chances of success when the app launches.
Step 9: Release and market launch.
The most exciting and rewarding stage of the journey is application release. Google Play Market, Apple’s App Store, and Microsoft Store all have different requirements that banking app developers must adhere to for their app submission to be successful. The first feedback, ratings, and stars will be provided once the app is released.
Step 10: Collect feedback and make updates.
Reach out to your audience for valuable feedback, collaborate with review sources, and then test and promote your app with influencers and opinion leaders. Put in as much time and effort as you need to improve your app.
Must-Have Features of a Mobile Banking App
Authentication and authorization flows
Multi-factor authentication is a safe way to sign in. The next step after login is authorization, which determines what users can do and see in your app. To provide an excellent user experience, use biometric authentication, which includes physical user metrics such as fingerprints, appearance, voice, and even gestures.
Assist users in viewing bank balances, tracking spending, recording history, and analysing habits. You can take it a step further by offering people the ability to set savings goals, create investment plans, and automate regular payments.
Ensure that clients can contact customer support managers 24 hours a day, seven days a week to resolve issues. You can also improve the user experience by implementing an artificial intelligence chatbot.
ATM/Bank branch locator
Allow your customers to search for nearby ATMs and branch locations with information on the services offered, operating hours, and directions to make their lives easier.
Secure payment and transaction processing
All in-app payments and transactions processed should be secure and available anytime, regardless of location. Adding QR code payments is also a good idea.
Keep customers informed on the go by sending banking alerts on account updates. However, use caution and avoid being intrusive, as your messages may get lost in the “data noise” and drive users away from your app.
Additional mobile banking features to help you stay on top of market trends.
Having control over your money is always a good idea. Assist people in sticking to their budgets and saving money. Consider categorizing periods as daily, weekly, monthly, or yearly.
In 2021, mobile e-commerce has reached $3.5 trillion, accounting for 72.9% of all e-commerce sales. A benefit like this will entice bank customers to make in-app purchases. Furthermore, cashback serves as a solid foundation for your loyalty program.
Special offers, discounts, and coupons can assist in building personal relationships with your customers and contribute into increasing sales and developing brand loyalty.
Bill – splitting.
The bill-splitting feature allows dividing bills and assigning each person their cost down to a cent.
Chatbot or voice assistant
Voice-powered digital banking chatbots are the icing on the cake for providing compelling, advanced, and conversational user experiences for both informational and transactional purposes.
Cardless ATM access
Allow your bank’s customers to withdraw cash even if they don’t have their card with them. Require account verification via text message or a banking app call on their smartphone instead.
Best technology stack for mobile banking app development
Native app development
If you are only creating a banking app for iOS or Android, you should use native app development. Swift, XCode, and the iOS SDK are the best technologies for iOS-based mobile banking software solutions. When it comes to Android-based mobile banking development, the tools of choice are Java, Kotlin, Android Studio, and SDK.
Cross-platform app development
Cross-platform app development is a successful strategy that enables banking app developers to use a single code base for multiple operating systems. Choose React Native, Flutter, and Xamarin for cross-platform development.
Hybrid app development
Launching mobile banking app requires being compliant with many regulations. Here are a few examples:
- GDPR. The General Data Protection Regulation (GDPR) lays down the rules for protecting personal data in the EU.
- PSD2. The New Payment Services Directive (PSD2) promotes the development of innovative online and mobile payments, more secure payments, and better consumer protection across the EU and EEA.
- PCI DSS. PCI DSS (Payment Card Industry Data Security Standard) maintains, evolves, and promotes Payment Card Industry standards for cardholder data safety across the globe.
Are you planning to create a mobile banking app?
The nature of the core banking system is being altered by digital. While developing a successful and secure mobile banking software solution takes a significant amount of time and effort, the market is open to new challenges.
The key to success in mobile app development is proper planning and budgeting, as well as collaborating with an experienced team of professionals. Contact us if you need an assistance in mobile banking application development.