How To Build Mobile Banking Application In 2022
The banking sector is witnessing a massive digital transformation in recent years. In fact, more and more traditional banks are implementing digital FinTech technologies in their daily operations. This enables better convenience, security, and speed for both banks and customers. Thus, many banks are reaching a leading FinTech app development company to develop their own digital solutions.
If you are also thinking to get started with mobile banking app development, then you must have a clear idea about the process and complications that you might face. This is the ultimate guide to learning how to build a banking application in 2022.
Let’s learn a few facts about the market size of mobile banking apps
Mobile Banking App Market Overview
- It is estimated that more than 75% of US citizens their mobile devices to check the status of their bank accounts in 2019
- Around 89% of US citizens rely on a mobile app for managing their bank accounts.
- The international mobile banking market had a value of $715.3 million in 2018
- It is expected that this might reach up to $1,824.7 million by 2026
- We will see a growth rate of CAGR of 12.2% between 2019 to 2026
What is a FinTech or Banking Mobile Application?
The English word ‘FinTech’ is the combination of ‘Finance’ and ‘Technology’. Thus, banks and financial businesses are able to combine financial services with the best available technologies. These technical solutions help businesses to automate, improve, or streamline their financial services and processes.
FinTech itself is not a brand new concept in the banking industry. In fact, it has been there since the early days of ATM technology, electronic trading, and personal finance applications. However, FinTech is getting massively changed with robust mobile banking app development services. These companies are known for implementing world-class technologies such as Blockchain, AI, machine learning, data science, and more.
Why are Banking Businesses are Developing Banking Apps in 2022?
Both customers and banks are able to enjoy the benefits of building a banking mobile app with a prominent FinTech app development company.
1. Improved ROI
Developing a mobile banking app can drastically change user engagement, customer base, market credibility, and the flow of revenue. However, it takes a lot of time for market research, competitor analysis and resources to develop a mobile banking app.
Several banks have been successful in developing successful banking apps from leading mobile banking app development companies. Thus, you can also have good expectations of high returns from your mobile banking app.
2. Better Customer Experience
Customers want a superior and convenient digital banking experience from their smartphones. Moreover, they don’t have to manually visit a website or office to check the status of their bank account. Thus, investing in mobile banking app development services make more sense to enhance the existing customer experience.
Effective mobile banking app development makes the banking experience more accessible and time-saving. For this reason, banks can take the opportunity to help the customers in getting faster financial activities.
3. Great Marketing Opportunity
It is quite hard for a banking institute to keep its customers updated about the latest deals and offers. Above all, manually calling customers to inform them about the offers is not effective anymore.
Building a banking app with a leading FinTech app development could provide you with great marketing opportunities. It is much easier to inform the customers about the latest updates through push notifications. In fact, you can also release fully customized notifications for your customers with a mobile banking app.
4. Elimination of Paperwork
Customers don’t like to have tons of paperwork when doing a simple banking activity. In fact, creating unnecessary paperwork is also harmful to our environment. Thus, building a banking application with effective mobile banking app development can reduce a lot of paperwork.
Digitalization is very important to ensure customer engagement without creating unnecessary paperwork. As a banking business, you will also get clarity with your business goals.
5. Far Better Accessibility & Availability
Mobile banks drastically remove the distance between banks and customers. In fact, customers can now able to instantly access any banking services from the convenience of their smartphones.
This is only possible because of the quality mobile banking app development and solution-oriented products.
Why Customers are Giving More Preference to Mobile Banking Apps?
Quality mobile banking app development services are helping banks to provide a superior customer experience to traditional banking. In fact, it is helping the customers in the following ways;
- 24/7 access to banking & financial services
- Easy access to transaction history & details
- Make deposits remotely
- Cutting-edge security measures
- One-click bill payments
- Streamlined money transfer
- Easy online payment of loans
Who is the Target Audience of Mobile Banking Apps?
The banks and financial institutes target mainly the millennials and GenZ for mobile banking apps. These young users love to manage their financial needs from their mobile devices instead of traditional means.
The banking businesses know the fact well that these millennials will be taking over the banking sector between 2025 and 2035. In fact, they will be tech-savvy customers with high wealth for global financial organizations to manage. Thus, this is the perfect time to invest in mobile banking app development services to gain a competitive advantage and enjoy the future market.
Essential Features to Consider in Your Mobile Banking App Development
There are some of the must-have features in your mobile app development process;
Proper Authentication and Authorization Flows
The authentication process must be very secure. Thus, you can think about implementing multi-factor authentication to ensure maximum protection against unauthorized access. Moreover, you can also implement biometric authentication with user metrics like voice, face, fingerprint, eyes, etc. The security of data is very important in FinTech applications, you cannot ignore the security measures during the mobile banking app development process.
The users should be able to easily manage their accounts to learn about their bank balance, and transactions, record history and understand spending habits. Furthermore, you can also implement features to create investment plans, automate payments, and define saving goals.
The customer should be able to easily access customer support 24/7 to resolve their issues. Thus, it is important to include a customer support panel in your mobile app development process. Furthermore, you can also implement an AI chatbot to make the customer support process more streamlined.
Customers often want the location of nearby ATMs and bank branches. However, instead of making them go to Google maps and manually search for locations, your mobile banking app can also locate the ATMs and branches.
When you are building a mobile banking app, you must consider flexible payment options. This would help the users to send payments through different channels.
Your mobile banking app could become a great marketing tool for your business. Thus, you can send personalized push notifications to the users about the latest deals, offers, and updates. Having a top mobile app development company onboard can help you easily implement this feature.
Payments and money transfers have become blazing fast with the introduction of QR codes. Thus, you should implement a QR scanner in your mobile banking app development process to allow users to send and receive payments.
The majority of mobile users use banking mobile apps to track their expenses. It helps them to save more money and stick to their budget. Thus, you should also consider adding this feature to your mobile app development process.
Cardless ATM Access
This is a high-level digital feature that doesn’t require users to carry their ATM cards with them. For this reason, you can implement this feature to provide them with the best convenience of digital ATM transactions from the app itself.
Mobile Banking App Development Process
This process includes a lot of complex operations and tasks. Developing your mobile banking app could be very challenging if you don’t have any prior experience. Thus, it would be advisable to hire a leading mobile banking app development company. This is the process of developing a mobile banking app;
Market Research and Working on a Development Plan
Conducting strong market research and competitor analysis is very important for any business to survive. Thus, you must learn about the current industry trends, your competitors, and development trends before starting the mobile app development process.
Understanding the market and your competitors will help you create a unique value proposition/business model.
Designing and Building a Prototype
Designing the UI/UX is the most important part of the development process. In fact, these days a mobile app cannot become successful without a good and user-friendly design. Thus, you have to focus on developing the wireframes, user guides, mockups, and then prototypes.
This would give you the best idea about the app’s design, logic, structure, and other elements. Moreover, a mobile app development company can greatly help you by developing an affordable high-fidelity mobile app.
Preparing the Security Infrastructure
The security of your banking mobile app should be given the highest priority. Thus, you must take the help of iOS and Android app developers to prepare the security infrastructure of your app. In fact, you can also introduce DevSecOps into your development process to get to know about the most popular and dangerous threats.
Coding the App
After defining the security infrastructure, your mobile app development team will need to start working on the coding part of your banking app. Above all, your team will be working on the front-end, API(s), and the back-end part of the app. To make this process super streamlined, you must take the help of a mobile baking app development company. They have the real industry experience to get you through the development process with ease.
Integrating Third Party Solutions
You might not need to build some features from scratch. In fact, there is a lot of useful banking APIs that would make your banking mobile app feature-rich and convenient. Thus, by using them, you can save a lot of time and effort in your development process.
Testing the Banking App
The mobile banking app development process isn’t complete without testing the app for its integrity and security. Thus, your development team must conduct strict testing to find out any possible glitches, bugs, errors, etc. The mistakes in the development process can be rectified through intensive testing and ensure a world-class user experience.
Deploying the Banking App
Both Play Store and App Store have strict rules and guidelines for application deployment. Thus, your chosen fintech app development company must be maintaining a checklist during the development process to ensure effective deployment in the respective stores.
Marketing and Learning from Feedback
After successfully deploying your mobile banking app, you have to launch marketing campaigns to get more mobile customers onboard. You can use marketing tools like paid ads, social media platforms, etc. Later, after getting sufficient users for your mobile banking app, you have to constantly learn from the user feedback to optimize your offerings.
This process would further help you improve the user experience and robustness of your mobile application. Plus, feedbacks and reviews are also very important to build market trust and loyalty.
Business Models for Mobile Banking Apps
When you start mobile banking app development, you also need to consider a business model to get effective results. The following are the most popular business models used with mobile banking apps;
This business model is meant for neobanks, who can earn revenue from interchange fees. This revenue is transferred whenever a customer uses a neobank’s card to make a payment.
This model works with the credit-first model, where the customers have the option to pay later from their bank account.
This business model works by providing an ecosystem for various financial services for the users. There are plenty of value-added services enjoyed by users through this ecosystem.
Neobanks are able to generate through this model by providing savings accounts and gathering deposits with competitive interest rates.
– Product Extensions
This business model is meant to remove the barriers between the financial domains. Above all, this model is often chosen by big tech companies that want to provide some financial services.
Cost of Developing a Mobile Banking App
The cost and time of mobile baking app development depend on various factors. However, if you need a fair estimate, then you should contact a prominent mobile app development company.
The cost of mobile banking app development can be determined by the following factors;
- App Complexity
- Technology Stacks
- Chosen Platforms
- Development Approach
In any case, the usual development cost is somewhere between $100,000 to $200,000. However, this cost heavily depends on the development team.
Let’s try to breakdown the mobile banking app development cost into this table
Feature List – Cost Breakdown
|Account management panel||$10,000 – $15,000|
|Account creation portal||$5000 – $10,000|
|Report generation||$10,000 – $20,000|
|Payment integration||$7000 – $20,000|
|Automated email generator||$8,000 – $12,000|
|Chatbot||$2,000 – $8,0000|
Development Process Cost
|Discovery & Analysis||$5000|
|Designing the UI/UX||$5000 – $10,000|
|Core Development||$35,000 – $100,000|
|QA Testing||$10,000 – $50,000|
|Deployment Process||$10,000 – $50,000|
|Support & Maintenance||$5000 – $10,000|
Hiring the Top Mobile Banking App Development Company
Developing a mobile banking app is a very challenging and time taking process. In fact, there are a lot of things that you need to oversee to ensure the security and reliability of your app. Security elements are the most important components of a mobile banking application. Thus, it would be advisable to get an experienced FinTech app development company onboard.
MobileCoderz could be your best bet when it comes to quality mobile banking app development. We have an expert team of iOS and Android developers who can build high-performance, secure, and reliable mobile banking apps. Our pricing plans are super flexible and scalable. Thus, you can always get the assurance of cost-effective and highly scalable mobile app development.
A Complete Flutter App Development Guide: The What, Why, and When
Complete Guide To Fintech Mobile App Development
SaaS Application Development: benefits & challenges for startups