<p dir="ltr">Paperwork, endless queues and a 9 to 5 schedule — this is what banks looked like not so long ago. Today, many people can't even remember the last time they went to an offline bank branch in person. Now you can transfer money to your loved ones on the other side of the world, pay bills and apply for an installment plan in seconds from the comfort of your own home. All of this is possible with the help of banking applications.</p> <p dir="ltr">In this article we will talk about why a mobile application is a must for any modern bank, discuss the main trends in financial service development, and take you through the steps of developing a mobile banking app.</p> <pre class="language-contactus"><code>{{ "title": "Write ChilliCode", "description": "To help you acknowledge your business needs and decide whether IT services will work for you, I’ve sorted out a list of cases.", "buttonText": "Contact us" }}</code></pre> <h2 dir="ltr">Mobile banking app: what is it and who it is for?</h2> <p dir="ltr">Mobile banking apps are services that allow you to transfer and receive payments, repay loans and monitor your wallet balance online. </p> <p dir="ltr">The developers of such applications are mainly banks. Among them are those that have physical locations, e.g., Bank of America, and those that don’t, e.g., Ally Bank. </p> <p dir="ltr">But a mobile banking application doesn’t have to be owned by a bank. For example, Venmo, PayPal, TransferWise and Payoneer are independent mobile banking services for banking and P2P transfers. </p> <h2 dir="ltr">Advantages of mobile banking app development</h2> <p dir="ltr">A high-quality mobile banking app is a tool that effectively solves the issues of your business. Here are some of the benefits of mobile banking apps. </p> <h3 dir="ltr">Increased customer loyalty</h3> <p dir="ltr">We are used to all services being provided instantly — all it takes is just tapping a few buttons. We expect the same from our banks. Payments and transfers should be quick and available around the clock, and problems should be solved in a timely manner.</p> <p dir="ltr">A mobile banking application is a sure way to build strong relationships with clients. A bank that doesn’t have a mobile app might appear untrustworthy.</p> <h3 dir="ltr">Reduced costs</h3> <p dir="ltr">Mobile apps help banks reduce costs. Today, pretty much all the functions of physical branches can be moved to the digital world. Banks don’t have to spend money on opening physical locations.</p> <p dir="ltr">Mobile banking apps also help automate processes and reduce operational costs. For example, in an app, customers can have their questions answered immediately via a chatbot, which means that the workload on human employees is reduced. </p> <h3 dir="ltr">Stronger security</h3> <p dir="ltr">For bank clients, nothing is more important than security. This is where mobile banking apps are performing better than financial institutions without mobile banking services. </p> <p dir="ltr">Most smartphones support various types of authentication, such as two factor authentication and biometric authentication. They are almost impossible to bypass, meaning no one can access a customer's savings except the customer himself. </p> <h3 dir="ltr">Additional sources of income</h3> <p dir="ltr">Mobile banking technology can be a useful financial asset for a bank. According to <a href="https://www.fiserv.com/content/dam/fiserv-com/resources/Mobile-Adoption-White-Paper-January-2016.pdf">Fiserv</a>, mobile banking app customers on average generate 72% more revenue than branch customers. </p> <p dir="ltr">One way to generate additional revenue from a mobile app is extending its functionality. For example, Revolut added a travel planning feature called Stays to its mobile banking application. That way, the bank attracted clients who used to book flights and hotels via other services before. </p> <p dir="ltr"><img src="https://chillicode.dev/uploads/1_aisha_angl_51b7361790.png" alt="Revolut for travelling" width="1600" height="900"></p> <h3 dir="ltr">Improving the accuracy of data analysis</h3> <p dir="ltr">The success of any fintech project is tied to the collection and analysis of data. This is where mobile banking apps come to the rescue. They gave banks another way to measure customer satisfaction and engagement with their product, identify problems and come up with solutions. </p> <p dir="ltr">Neural networks can be trained on data collected through mobile banking apps. For instance, Capital One uses it to analyze spendings and offer personalized credit card recommendations. In addition, neural networks help banks identify suspicious behavior and prevent fraud attacks. </p> <h3 dir="ltr">Increasing customer engagement</h3> <p dir="ltr">Thanks to mobile apps, modern banks are always at arm's length. Push notifications allow financial institutions to communicate directly with their customers, creating a sense of constant connection and engagement. Through them, clients also find out about current offers, discounts and other important changes. </p> <h3 dir="ltr">Types of mobile apps for banks</h3> <p dir="ltr">There are just as many types of banking apps as there are types of banks. The set of functions of a mobile banking app directly depends on its target audience. </p> <ul> <li dir="ltr" aria-level="1"> <p dir="ltr" role="presentation">Apps for retail banks. For individual consumers. They usually allow you to manage savings, transfer funds from one account to another, pay bills, repay loans and installments, as well as monitor spending and budget planning. </p> </li> <li dir="ltr" aria-level="1"> <p dir="ltr" role="presentation">Apps for corporate banking. Used by legal entities. Features are often more sophisticated than those of retail banking apps: for example, they can give different levels of access to finances depending on the employee’s role. Apps also help to quickly authorize transactions and payments, and keep track of cash flow. </p> </li> <li dir="ltr" aria-level="1"> <p dir="ltr" role="presentation">Apps for neobanks. These organizations provide online-only services. Since they rely entirely on their digital products, they tend to prioritize user experience. Neobanks often become the main innovators in fintech. A prominent example of a neobank is Chime. </p> </li> <li dir="ltr" aria-level="1"> <p dir="ltr" role="presentation">E-wallets. Financial platforms that let you manage your money online. Usually don't have physical cards or branches. Often used in e-commerce because they allow one-click purchases and are easy to integrate. E-wallets are very popular in the US, Venmo and Cash App being some of the most famous examples.</p> </li> </ul> <h2 dir="ltr">Trends in mobile banking application development</h2> <p dir="ltr">It is important to be aware of trends no matter which industry you are in, and mobile banking software development is no exception. It is important to keep up with your competitors, but at the same time not to copy anyone blindly. Here are the trends in the world of mobile banking application development that you should be paying attention to right now.</p> <h3 dir="ltr">Chatbots</h3> <p dir="ltr">Chatbots are a megatrend of modern mobile development. You can find them everywhere nowadays, but they are especially useful in banking apps. </p> <p dir="ltr">Chatbots improve customer experience and reduce costs for a financial organization. Unlike real people, they don't need to be paid a salary, they never make mistakes or are rude to customers. This means they can work around the clock while always providing quality service.</p> <p dir="ltr">Chatbots aren’t just robots that give the same answers to all questions. Thanks to neural networks and machine learning, chatbots can offer tailor-made solutions for each customer. </p> <p dir="ltr">For example, Wells Fargo has added a virtual assistant called Fargo to its mobile app. Users can ask it to cancel credit cards, check accounts and count monthly expenses so you don't have to do it all yourself. </p> <h3 dir="ltr"><img src="https://chillicode.dev/uploads/2_aisha_angl_f6d2856966.png" alt="Fargo virtual assistant" width="1136" height="875"></h3> <h3 dir="ltr">Gamification</h3> <p dir="ltr">Managing finances is a serious business, but even it can be gamified. Bright visuals, storytelling, and bonus and cashback systems will help your clients feel good when using your banking app.</p> <p dir="ltr">With gamification, even tracking your monthly expenses can be fun. For example, Aspiration, a bank that brands itself as an eco-friendly bank, plants trees for every purchase made with its card. It also offers clients increased cashback for buying products from eco-friendly stores from list.</p> <p dir="ltr"><img src="https://chillicode.dev/uploads/6_ru_aisha_3_angl_5c23e0c275.png" alt="Eco-friendly Aspiration bank app" width="1424" height="1233"></p> <h3 dir="ltr">Superapps</h3> <p dir="ltr">Superapps are large ecosystems. They offer a wide range of products within a single platform. Customer expectations are growing every year and banks are looking for new ways to fulfill as many of their needs as possible. Superapps can include everything from budget planning and investment tracking to social media and marketplaces. </p> <p dir="ltr">Chinese WeChat is an example of a superapp that functions both as a messenger and a mobile wallet that can be used to make mobile payments and online transactions. </p> <p dir="ltr"><img src="https://chillicode.dev/uploads/image_93e51c2564.png" alt="Chinese WeChat Superapp" width="1079" height="732"></p> <h3 dir="ltr">Cross-platform app development</h3> <p dir="ltr">Banking apps should be as user-friendly as possible and fulfill user requests instantly. But how do you make sure your app works seamlessly on all devices? Cross-platform app development to the rescue.</p> <p dir="ltr">Cross-platform app development isn’t just a technology stack preference. It has become a real trend in fintech. </p> <p dir="ltr">First, cross-platform development helps save time and money. This is especially important for young companies with limited resources. Second, cross-platform applications cover two categories of mobile banking users at once — those who use iOS and those who prefer Android. </p> <p dir="ltr">Finally, cross-platform development, although less expensive, is in no way worse than native development. Modern frameworks allow you to recreate the native-like experience down to small details. Your users won't notice the difference in either speed or functionality while you will have made a more cost-efficient decision.</p> <h2 dir="ltr">Must-have features of mobile banking apps</h2> <p dir="ltr"><img src="https://chillicode.dev/uploads/01_0344271523.png" alt="Must-have for mobile banking apps" width="1808" height="1206"></p> <h3 dir="ltr">Personal account management </h3> <p dir="ltr">According to <a href="https://www.statista.com/statistics/934476/reasons-for-using-mobile-banking-apps-usa/">research done by Statista</a>, 90% of mobile banking app users use them to check their account and card balance. Account management is a must-have feature for any banking service. In addition, mobile banking users should be able to easily manage multiple accounts, view their transaction history, and pay bills.</p> <h3 dir="ltr">Notifications and alerts</h3> <p dir="ltr">Any banking mobile app should have a notification system — for example, via push notifications. Notifications keep users updated on changes within the app, remind them about upcoming payment deadlines and tell them if their account balance in low. All of this improves overall customer satisfaction with the app and the bank.</p> <h3 dir="ltr">QR code payment</h3> <p dir="ltr">QR code payment is now available almost everywhere. One of the main advantages of this technology is its speed. QR codes are also safer than cards, because you don't need to enter your PIN-code when scanning them. Many people prefer opening a mobile application on their phone than rummaging for a wallet in one’s bag.</p> <h3 dir="ltr">Biometrics</h3> <p dir="ltr">Biometric authentication, such as logging into an account via fingerprint or facial recognition, is much more reliable than ordinary passwords. Biometric payment is often supported by other protective measures. For example, an additional security codes sent to your phone that you need to enter to confirm the transaction.</p> <h3 dir="ltr">Financial planning</h3> <p dir="ltr">Planning a budget by hand in a notebook is a thing of the past. It's much more convenient to track expenses, count profits and set financial goals right in the banking app. Users can automatically set aside money in savings accounts and see a complete breakdown of their expenses by categories. And if you add a reward system for achieving goals, you can turn a boring routine activity into a fun game.</p> <h3 dir="ltr">Customer support</h3> <p dir="ltr">A built-in customer support system is a must-have feature of any mobile banking application. Clients should be able to ask questions related to their finances or the app’s performance at any time of the day or night. In cases where automated responses aren’t enough, it is important to give users the option to talk to a bank employee right in the app.</p> <h2 dir="ltr">5 stages of mobile banking app development</h2> <p dir="ltr">Now it's time to talk about what goes into the process of developing a mobile banking</p> <p dir="ltr">app. Although the steps will vary from project to project, there are 5 basic steps. </p> <h3 dir="ltr">Market analysis</h3> <p dir="ltr">The very first step of mobile banking app development is to study the market. Look at what your competitors are offering and find out what you can offer to your customers instead. Identify your target audience and try to understand what is missing in existing apps. Market research will also help you choose a solution that will help you achieve your goal and stay within budget. </p> <h3 dir="ltr">Prototype</h3> <p dir="ltr">Every project starts with a plan. A prototype is the outline that will help you structure thoughts and turn vague ideas into something tangible. Its creation begins with drawing an approximation of how the design elements of your application will look like and figuring out their logic. </p> <p dir="ltr">At this stage, it is best to entrust mobile app development professionals with your project. Experienced developers will help you create a mobile banking app prototype that will take into account your wishes and needs and become the foundation for the future application.</p> <h3 dir="ltr">Design and development</h3> <p dir="ltr">The design of your banking app should be memorable and friendly. However, it should not distract users from important information or interfere with its perception. </p> <p dir="ltr">At this stage of developing a mobile banking app, the structure of the app is also finalized. </p> <h3 dir="ltr">Testing</h3> <p dir="ltr">This stage is a must if you want to make sure that the app will work properly after it’s released. Developers conduct a series of tests that help them identify possible problems in the application and fix them immediately. </p> <h3 dir="ltr"> Launch </h3> <p dir="ltr">The app is ready to be launched and uploaded to one of the existing major app stores. To ensure that your app isn’t rejected, make sure to study the requirements of each marketplace in detail. </p> <h3 dir="ltr">+1. App support</h3> <p dir="ltr">Congratulations, you've launched your product! But its journey doesn't end there. You and your development team will have to constantly make sure everything is working properly. </p> <p dir="ltr">Usually, a large number of apps are updated as soon as they get the first wave of responses from the general public. Feedback from users is one of the main vectors that help apps become better. To make all the stages of the mobile banking app development process go smoothly, it is best to go through them with a team of professional mobile developers.</p> <h2 dir="ltr">What defines the cost of mobile banking app development?</h2> <p dir="ltr">Long before the start of mobile banking app development, you should determine the budget and duration of your project. Here are the factors that can affect the development cost and timeline.</p> <h3 dir="ltr">Features</h3> <p dir="ltr">The more features an app has and the more complex they are, the more it will cost and the longer it will take to develop. For example, a financial app with basic features like balance display and spending history is easier to make than an app with biometric authentication. Among the features that are considered “advanced” and usually cost more are expense analysis, chatbots, and enhanced security measures. </p> <h3 dir="ltr">Platform</h3> <p dir="ltr">The cost and speed of mobile banking app development is also affected by the choice between native and cross-platform app development. Native apps are created separately for iOS and Android platforms. Because of this, the cost of native apps is often higher. They also take longer to create, because developers write two different codes from scratch instead of one.</p> <p dir="ltr">Cross-platform app development often costs less and takes less time, because these apps are built using a single code base. For this reason, cross-platform app development is often the method of choice for startups and smaller projects.</p> <h3 dir="ltr">Interface </h3> <p dir="ltr">The logic here is similar: the more complex the interface, the higher the cost of developing a mobile banking app. Applications with one key action can be made relatively quickly.</p> <p dir="ltr">Complex applications with a variety of features require serious planning and multi-level testing. Applications for banks usually fall into the second category — they must combine a lot of features while remaining user-friendly. </p> <h3 dir="ltr">Why is it more difficult to create a mobile banking app than other services?</h3> <p dir="ltr">Pretty much any mobile app development project can be evaluated based on the points listed above. However, it is important to keep in mind that banking apps are very different from, say, online shopping apps. </p> <div dir="ltr" align="left"> <table><colgroup><col><col><col></colgroup> <tbody> <tr> <td> <p dir="ltr">Feature</p> </td> <td> <p dir="ltr">Banking app</p> </td> <td> <p dir="ltr">E-commerce app</p> </td> </tr> <tr> <td> <p dir="ltr">Standards</p> </td> <td> <p dir="ltr">Financial security standards (PCI DSS)</p> </td> <td> <p dir="ltr">Consumer protection laws, personal data protection laws</p> </td> </tr> <tr> <td> <p dir="ltr">Security</p> </td> <td> <p dir="ltr">Two-factor authentication, encryption</p> </td> <td> <p dir="ltr">Reliable payment gateways and user data protection </p> </td> </tr> <tr> <td> <p dir="ltr">Personal account log in</p> </td> <td> <p dir="ltr">Several types of authentication are required (biometrics, one-time passwords)</p> </td> <td> <p dir="ltr">Standard login procedure (it is possible to log in via social networks)</p> </td> </tr> <tr> <td> <p dir="ltr">Data sensitivity</p> </td> <td> <p dir="ltr">Highly sensitive data, requires high levels of protection</p> </td> <td> <p dir="ltr">Personal data, but not as sensitive as bank data</p> </td> </tr> <tr> <td> <p dir="ltr">Real-time data processing</p> </td> <td> <p dir="ltr">Necessary, transactions should happen instantly</p> </td> <td> <p dir="ltr">Slight delays are more acceptable</p> </td> </tr> <tr> <td> <p dir="ltr">Types of transactions</p> </td> <td> <p dir="ltr">Deposits, withdrawals, transfers, loans</p> </td> <td> <p dir="ltr">Primarily focused on payments and refunds</p> </td> </tr> </tbody> </table> </div> <p dir="ltr">The main difference is that banking apps must have the highest levels of fraud protection. They also have less margin for error than non-financial apps. </p> <p dir="ltr">If you consider all the elements that affect the speed and cost of mobile banking application development, it will be easier to plan the budget and timeframe of the project. If you are in doubt about how much time and money it will take to create a mobile banking app, you can always ask professional mobile developers for help. </p> <h2 dir="ltr">What does a perfect banking mobile app look like?</h2> <p dir="ltr">What is the perfect banking mobile app? Answering this question isn’t as easy as it seems.</p> <p dir="ltr">It's important to remember that you can't please everyone — no matter how many new features you add, there will always be those who will choose another app over yours. Modern and simple UI/UX design, advanced functionality and secure payments and transfers are the minimum basis for success. It’s important not to chase trends, but to confidently follow your own path and listen to the opinions of your users.</p> <p dir="ltr">You don't have to learn how to code to build a mobile banking application for your project. Just ask a mobile development team for help — for example, our team here at CHILLICODE. </p> <pre class="language-subscription"><code> </code></pre> <h2 dir="ltr">ABOUT CHILLICODE </h2> <p dir="ltr">CHILLICODE is an agency that has been developing mobile applications for over 11 years. We have experience working on e-commerce, medicine and fintech projects. Our team consists of 25 highly experienced professionals who have helped us successfully complete over 350 projects. Find our portfolio on our website.</p> <p dir="ltr">We would be happy to talk to you and learn more about your project. Fill out the form on our website or email us at sales@chillicode.dev. We will evaluate your project and outline an approximate budget and timeline for the development of a mobile banking application.</p>
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