Banking app development has advanced significantly in the past decade, with a majority of fintech institutions and traditional banks now providing their customers with a mobile app. A 2018 study by Citi found that over 80% of consumers use mobile banking at least nine days per month – and that was before the covid pandemic significantly accelerated digital adoption.
Simply having a digital experience, however, isn’t enough. From features like personal finance optimization, to tracking expenditures, bill payments, credit monitoring, live support and more, banking app development has advanced significantly in recent years.
To maintain customer loyalty in today’s climate, developing an app that makes digital banking as seamless as possible is crucial. Modern bank users of all generations are increasingly turning to banking apps as their primary method of money management.
We have created the ultimate guide to developing a mobile app for your bank. Here, you will learn about the process, costs to consider, benefits to launching an app, and challenges you may face along the way.
Like other worthwhile and challenging endeavors, effective banking app development typically starts by outlining a process. Understanding the steps involved in creating your own app will give you a clear direction and make the entire endeavor less intimidating.
When it comes to creating a great banking app experience, we’ve broken the process into five major stages: define, design, develop, testing, and maintenance & updates. Each of these steps is distinct in its timeline and requirements, but they’re all equally important in the development and ongoing of an app that’s beneficial for the user and worth the effort for your business.
The define step is the broadest and most foundational app development step. This is when you’ll determine the critical features and capabilities that audiences are expecting in your app.
You may have already done some research about your target audience and demographics, but this stage allows you to learn more about your specific users and understand what they want in a mobile banking app and there’s no substitute for connecting with them directly. Talk to them about how they use your app today, what they like and don’t like, and about their financial needs more broadly. After all, they may have a pain point that they don’t realize you can solve.
You can also look to your competitors to see what functionalities are offered to make sure you aren’t missing features that customers are coming to expect. You can also research development trends across categories and industries to inspire the layout and the capabilities of your app.
One of the most important parts of this step in the process is starting to think about the hierarchy of the information your customers need and want. You’ll want to think about what’s most important and how that necessitates the placement of that content or information.
Throughout the process, be sure to identify the unique selling propositions (USPs) that make your bank and its app stand out from others; this element will give you a competitive edge once your app has launched and help guide your marketing messaging.
After doing the needed foundational work, you’ll want to start on the design. You’ll be able to outline all aspects of the app from its layout and structure to visual elements like colors and shapes. In this step, you’ll also likely want to develop a prototype. When you put together a prototype, don’t be afraid to make changes as needed based on user feedback. It isn’t meant to be the final product; the prototype is a fast and cost-effective tool to give you a glimpse at what could be before putting time and resources into final development.
You may find that the prototype phase takes longer than you initially expected. This can happen and shouldn’t be a major cause of concern but be sure to gather as much user experience data as possible to make the most of any delays. And keep in mind, changing your app while it’s still a prototype is much easier, quicker, and affordable than making big adjustments once your app has reached the next stage: development.
Now it is time to begin developing your app. This step is where all the hard work you put into your define and design phases comes to fruition. At this stage, integrating security into your app is crucial. You may want to bring in an outside team who is experienced in banking app security, particularly in the financial industry, since so much sensitive personal information is in your care.
To make the development stage a smooth process, you can bring in third-party solution to give your users the functionalities they expect. Instead of building every aspect of your app from scratch, taking advantage of third-party solutions can save you time and money without sacrificing quality.
Once your app is fully developed, all that’s left to do before launch is another round of testing. Your testers or QA team, will be able to provide feedback on both the functionality and visual appeal of the app. Security and ease of use should be a top priority at this point, so be sure to inquire about these elements specifically during the testing phase.
Now, it’s time to launch! We can include this step in the app development process since it is, ultimately, what the entire process is aiming toward. Launching your app can also be considered part of the “test” process since you’ll be able to get feedback from real users, allowing you to fine-tune your app as needed.
As times change and your company grows, you’ll need to keep your app up-to-date. Keep track of recent trends in both the technology and banking industries to determine whether your app needs an added feature or if a particular experience needs to be reworked.
Of course, you should continue to monitor your reviews and check in with users about their app experience. Use their feedback wisely and aim to make your app as functional and effective as possible. You’ll continue this step throughout the life of the app, so don’t be afraid to spend as much time on improvements as needed.
Banking app development is a vital part of your overall digital strategy, so you should be willing to invest time and money into the process. But just how much do you need to spend to develop an app that’s both aesthetically pleasing and easy for your users to take advantage of?
A large factor in determining your cost will be your development team. While an external experienced banking app development team may be a larger upfront investment, they can also work faster and often avoid headaches and rework down the road.
Other factors that can impact the cost of your app include; the amount of time you are willing to spend to develop the app, the complexity you want to incorporate, and any integration services you use. If you’re searching for a more exact figure, it may be worth it to consult an app developer who is experienced in the industry.
It is also important to consider the technology stack you will use within your app. Your technology stack will cover all aspects of your app, including the front and back-end, and will include all of the tech services that your app needs.
Developing a banking app means meeting the expectations of your users. Your app will need to possess specific functions that your users crave for quick and seamless money management. Chances are that you even have a favorite function you use frequently on your current banking app, whether that’s making transfers or temporarily halting a lost card.
The functionality you include in your app should come from the feedback of your test group during the discovery phase, but there are some features that should be obvious. The features we’ve listed below are a few of the most promising that will allow your users to quickly and securely bank on the go.
Keep in mind that this list is not all-inclusive. In your research, you may find that bank users in your area are requesting another specific feature. Keep the needs of your audience in mind when determining what functions to include in your app.
As the world becomes increasingly busy, the ability to set recurring payments can be a lifesaver for many. Your banking app can help users set repeating payments so that they never miss a bill. There are two main options for how you can offer this feature: automatically debit a preset amount every month, or, send users a notification each month when it’s time for them to make a payment. (If you do choose to allow notifications, make sure that your users can easily set how many notifications come in; otherwise, you run the risk of appearing intrusive.)
There are plenty of apps out there that allow you to keep track of a budget, but wouldn’t it be easier to track your budget in the same place you store your money? By giving your users a spending tracker, you can provide valuable insights on your users’ spending habits, allowing them to use your app to its full potential. Consider adding features like safe-to-spend analysis, savings goals, budget categories, and spending reports in graphs or other visuals.
Even though your banking app may offer dozens of features, you still want it to offer the best customer experience. Mobile banking is supposed to save time, after all, so don’t make your users spend time searching for a hidden function. Be sure your layout makes your app easy to navigate and ensure that all functionalities are simple for the user to perform.
It’s rare to use a ledger to keep track of your bank balance these days. We simply aren’t writing down our transactions anymore, and many people don’t care to save receipts, either. In order to help your customers, keep track of everywhere they’re spending money, add an online transaction history functionality. It can also be helpful to add search functionality so customers can find vendors quickly.
Being able to perform transactions quickly and easily is one of the most in-demand features in banking mobile app development. This feature is twofold: users can transfer money between their own accounts as well as transfer to other people’s accounts. Whether you choose to include just one or both functionalities, be sure to warn your users if they will encounter any transaction fees.
In banking, security is one aspect that users aren’t willing to budge on. One of your top responsibilities is to ensure that your customers’ information is safe and secure at all times. Integrating security features such as fingerprint or password access can help here. You may also consider adding additional security checkpoints when the user makes a transaction.
Including customer service access inside your app allows users to get answers to their questions right away, leading to a satisfying customer experience overall. There are several ways to integrate customer service into your app, such as using a chatbot for 24/7 access or including a contact form to get in touch with your in-person team. While a chatbot may be a big undertaking to develop, it can also bring added speed and convenience to your users’ banking experience and appeal to younger consumers who represent the future of banking.
Mobile banking app development is not without its challenges. Users are searching for more than just a place to store their money when it comes to choosing a bank. They also want to know that you have their security and privacy at the forefront of your operations. By facing these challenges head-on, you can create a more well-rounded user experience and ensure security at the same time.
There are quite a few ways that you can address users’ security concerns. We’ve already touched on secure authentication, which helps make sure that no unauthorized users have access to a customer’s account. You can also manage security concerns by including KYC (Know Your Customer) compliance. By requiring identification like a driver’s license or passport to open an account, you can make sure you know your customer is who they say they are. You can also enhance security by requiring strong passwords, only keeping business data that’s necessary, and by adding fraud detection.
Your users don’t only want to be sure that their information is secure; they also want it to be private. Your banking app will have to keep some data in order to provide full functionality for your users. However, holding onto too much information without a legitimate reason could present huge risks in the event of a data breach. Only store information that’s necessary and consider adding extra security measures like encryption to ensure that data is kept secure at all times.
Regardless of the industry or type of app, users expect their app experience to be easy and seamless. Complicated banking apps don’t allow users to handle their money as conveniently as they want. During the development process, place a special emphasis on the app’s ease of use. Customers should be able to easily perform basic banking processes, and they should have nearly immediate access to customer service for any questions.
Ease of service and customer experience go hand-in-hand in many cases. However, customer experience can include more than just how easy the app is to use. You’ll also want to make sure your app is functional, aesthetically pleasing, and includes the features they expect from a banking app. To continue improving the customer experience even after launch, keep up with user reviews and incorporate the feedback your receive.
We’ve touched on updating your app, but it’s worth pointing out that continual updates are a challenge you will need to reconcile. You may find that a change in the App Store or Google Play Store means that you need to adjust your app accordingly. On the other hand, perhaps a new mobile banking feature becomes commonplace, leading you to require a new functionality in your app. Keeping on top of industry trends will allow you to update your app and give it the facelift it deserves as the mobile banking industry continues to evolve.
Financial institutions big and small are reaping the benefits of banking app development. In a world that’s “on the go,” having a successful app for your bank lets you meet today’s modern customer right where they are: on their phone. Providing your users with mobile banking technology reduces the time and frustration that many people experience when managing their finances, making your bank an even more valuable asset to your users.
Creating a banking app involves many steps, and it won’t happen overnight. But, taking the time to develop a functional banking app for mobile devices will ensure that your financial institution can continue serving its customers and providing all the most in-demand functionalities for years to come.
On your journey, consider working with Mobiquity. Our mobile app development services allow you to create a customized app with all the functions your audience expects all while saving you significant time and money compared to handling the process yourself. Contact Mobiquity today to learn more.
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