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Step by Step Guide to Developing a Successful Banking App

By Shivam Srivastava
July 8, 2016 8. min read
Last update on: August 24, 2020

Gone are the days when you had to stand in a queue outside banks just to deposit money or cheque. Even for the simplest inquiries, we had to visit the nearest bank branch.

When mobile applications were taking over the world, it also touched the banking sector. This is when the demand for FinTech app development occurred.  And today we are here with the greatest digital solution for banking and finance. Mobile banking app development is an appreciable solution that has given banking a different sort of ease and comfort.

Mobile banking app features like instant fund transfer, paying bills, checking bank statements, etc. have made the life of customers much easier. There are many other reasons why customers are switching to mobile banking and banks are going for mobile banking software development. Reasons popularizing the search for how to create a banking app. 

Why are Customers Switching to a Mobile Banking App?

This question can be answered with a question itself. Why would you go to the bank when you can do the same and even more at home? With banking software solutions banks have made it possible for users to operate their bank accounts on their mobile phones. But that is not enough. Mobile banking applications do more than just that. Let’s take a look at some solid reasons that lay the basis of the answers around how to make a banking app:

24X7 support and access

With a mobile banking application development, customers get access to banking services 24 hours of the day and 7 days of the week. The traditional way of banking included opening hours, lunch breaks, closing hours, national holidays, etc. which did affect the accessibility of the services.

One app for everything

With banking application development, many problems can be solved. The apps provide features to transfer funds, update customer details, take payments, pay bills as well as shop online. Recently Paytm, the eCommerce payment platform, announced its Paytm Bank to the public. The app already had users and introducing banking facilities was a great move.

Time saver and cost-effective

Mobile banking application development makes banking transactions cost effective. There are no charges taken by the bank to provide online banking services. The use of the app is also a time saver since you don’t have to visit the branch every time. A consequence of this advantage is that the use of mobile banking apps doubled in Australia within two years.

Speedy transactions

Mobile apps are operated with a couple of taps and the work is done. Mobile banking developments are loved for this reason the most. With a few clicks, users can transfer money to anyone around the world and it doesn’t even take more than a minute. It is one of the sureshot ways to success when questioning how to start a banking app.

Types of Mobile Banking Apps

A custom mobile banking platform is devised to meet the specific customers’ needs. We have covered this loud and clear up until this point. The next thing to understand, however, is there exists three varieties of apps when we talk about how to build a banking app. Here’s what the subsections of banking and finance app development look like:

1. Basic level of mobile banking apps 

  • Money transfer
  • Account management
  • GPS navigation 
  • Payment schedule
  • Customized alert

2. Intermediate level of mobile banking apps

  • Financial management
  • Custom bank product offering 
  • Loyalty programs 

3. Advanced level of mobile banking apps

  • Pre-login 
  • Self-service
  • Cardless withdrawals 
  • Live chat 
  • Voice navigation. 

Ways to Build a Successful Mobile Banking System

Now you must be wondering ‘How to start making a banking app?’ but before you do that, there are other things you must know.

There is no easy way to build a successful mobile app and when it comes to mobile banking application development, things get a little more tricky. When you build a banking app, you should ensure that it should be a platform that people can trust and carry out transactions with ease.

While developing a mobile banking application, mobile banking app developers and the app owner must keep in mind the following important points.

Security is the primary factor

Be it mobile banking apps for Android or iOS, securing the app is going to be crucial. From the data gathering above, it is clear that trust and security is the main reason a customer would not go for mobile banking. Mobile banking technology must be highly secured to keep customers’ private data safe. It should also be hack-proof and safe from any cyber attack.

Know your target audience

It is commonly assumed that banking mobile apps will only be used by  millennials and not any other age group. This is untrue. Most baby boomers and senior citizens still use mobile banking apps. And a percentage of millenniums are highly unsatisfied with their current banking apps which proves that the assumed target audience is wrong.

The fast and simple make it till the end

The best mobile banking features are simple, elegant and do not hinder the speed of the app. After the risk of security, what makes users quit mobile apps is the performance of the app. Here are some things that you must avoid at all costs:

  • Poor logins
  • Too much complexity in features
  • Bad banking app and UI design
  • Absence of Quality design in the app
  • No push notifications
  • No search history available

Minimalistic but attractive banking app UX

The UX of the app is, without a doubt, a success defining factor. Future of mobile banking depends majorly on the UX of banking apps. The importance of UX design in apps is understood when a user faces constant glitches, poor functioning and poorly interactive apps. The UX should be interactive and built with the aim of providing the best user experience. A good UX can bring in more loyal customers and better the outcome of the mobile banking app creation process.

Test the mobile banking app design and features

If you are working with app development companies then there’s a less chance of mistakes. The reason being, they have experienced developers and creative designers. They will also run the mobile app through multiple tests for best results.

But if you are doing this on your own or with a freelance developer, it would be wise to make sure all tests are passed when you create a banking app .

Which crowd are you building for?

Android supporters and iOS supporters are in a constant argument regarding which one is the best for app development. Even though Android has more mobile users, iOS has more conversion rate. Keep in mind the direction you want to go in in the future.

Also, the devices for which the banking and finance software solutions will be developed must be taken into account too. Customers may switch from phones to tablets and vice versa. Therefore the apps must be developed in a way that it can be operated on multiple devices.

Innovative Mobile Banking Features

A mobile app is a whole lot more interesting with innovative features. When going for mobile app development for banks then there are certain features that are a must to add. Here are some best mobile banking app features:

  • The login and registration page for users. This feature must allow users to login with email ID or phone numbers.
  • The mobile app should be able to show the updated online passbook and transaction record to the users.
  • The app should also let users create a user profile so that they can put information like name, IFSC code, account number, DOB, etc.
  • Other services such as money transfer, bill payments, etc. should also be included in the features. A user should have the freedom to do more than just see the deposits and withdrawals history.
  • Push notifications send constant reminders to the users. Things like debit and credit in the account or alerts to avoid fake calls and messages, etc.
  • Customers should also be able to use their bank apps in offline mode. This may be helpful when they can’t get a network connection in some areas.
  • Customer support is also a crucial banking application requirement. Customers should be allowed to contact the bank officials in case of queries.  

Mobile Banking Trends 2020-2021

Mobile banking app development will have 10 interesting trends in 2020-21. Despite all the rumours around the financial sectors, the growth remains progressive for banking mobile apps.

These are the 10 banking app trends set for 2020-2021:

  1. Big data and analytics
  2. Removing friction from the customer’s journey
  3. Open banking and use of APIs
  4. Integrated multichannel delivery will be improved
  5. Building a strong partnership between fintech and banking firms
  6. More payments will be digitalised
  7. Innovation initiatives will get more investments
  8. New challenger banks introduced
  9. Advanced technologies like IoT, Voice, etc.
  10. Exploring new talents in the sector.

It is the first time when big data and analytics are more important in mobile banking app development than user experience. This only proves that the banking industry is progressing faster than anticipated. However, this also puts forward the thought that the growth of large financial institutions might be a danger to small banks.

Among these 10 banking trends, the top 3 trends have come as quite a shock to people. The traditional way of storing data and information was quite tiring and the massive number of transactions a single day made it even more tiresome. The top three trends are a result of that issue – one that mobile banking application development companies are working to solve.

These banking trends are moving so fast and making the lives of customers easier each day. The more the advancement in technology, the more innovative app development for banking apps gets. Another banking trend is chatbots in banking as it helps in fraud prevention and profitable marketing.  

If you have any queries related to banking app development contact our team of developers at Appinventiv.

Shivam Srivastava
Shivam Srivastava
Marcom Manager
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