Technology has helped us to drop the queue effortlessly, and the banking industry is nothing different. There were days people had to visit the bank, even for the simplest queries, but 1995 changed everything. It was the day Wells Fargo American Bank offered the first e-banking services and introduced Internet banking to the globe.
Digital banking users have increased significantly due to banks’ increased digital transformation initiatives in response to the Covid-19 pandemic’s disruption. According to a report by UK-based research firm Juniper Research, currently, 2.5 billion people use e-banking services worldwide. By 2026, roughly 53% of the world’s population is predicted to have access to digital banking.
The current market value for the banking industry in 2023 is $57B and is expected to grow 479% by 2027. The number is attracting many younger entrepreneurs, and if you’re also mesmerized by the numbers, this blog is for you.
Here, in this blog, we have covered everything you need to know for developing a banking app. Let’s discuss it in the segments below.
What is Mobile Banking?
M-banking, often known as mobile banking, is the practice of using a mobile device to access banking and financial services provided by banks. Customers may use it to check the balance of their bank accounts, make online purchases, transfer money, pay bills, etc. without going to the bank.
Mobile banking, which is offered in the form of a banking mobile application, is a condensed version of all financial services. The user must download the relevant mobile application from the app store to comply with the requirement. When users register their user profiles on this platform, they may carry out a variety of tasks, including financial transfers, checking passbook account balances, booking tickets, making payments, and much more.
Why is Everybody Moving towards m-Banking?
By utilizing mobile banking applications, clients can connect with banks and get the services they need right at their fingertips. A user can receive some of the advantages listed below.
1. Better Transaction
One benefit of the online banking application is this. If you rely on going to a bank branch, you cannot complete the transaction outside of bank hours. No matter the time of day, night, or bank holiday, you may promptly transfer the cash using a mobile application.
2. 24*7 banking
This is also another fantastic advantage of the mobile app. As a client, the demand or need to transfer may arise at any time. However, doing so through the bank is not simple at any moment. Here, digital service has a major impact. Due to a bank holiday, there is no need to wait in queue or put off a necessary transaction. The money is available for transfer or receipt at any time and from any location. As a result of this functionality, you may also refer to it as “all-time banking.”
3. An improved mobile banking app’s security
Through features like facial identification, fingerprint sensors, numerous pins, and multi-factor authentication, these apps improve security. If your phone is lost or stolen, this will increase the bank’s security against criminals. The bank also offers the option of remotely shutting off the application. Some even provide the option of revealing the location so that scams may be located.
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4. Access to All Banking Services
You may access virtually every financial service you can imagine with the mobile banking app. additionally, you don’t need to go to a bank branch, which is a benefit. For instance, you may instantly FD and make payments; pay bills, view bank statements, and transfer money. As a result, there is less waiting and more immediate job available.
5. Removes Linguistic Barriers
The difficulty today is in comprehending the app in accessible languages. Therefore, mobile applications also address this. To overcome language hurdles, banking applications are accessible in a variety of languages. You won’t be as confused using the application now as you would otherwise be.
6. Better Financial Control
You can monitor your finances with the use of mobile banking. You may also take a look at your expenditures to cut back on unneeded costs. You may include this in your financial planning. This will also assist you in improving your ability to manage your finances and increase your savings.
7. Better Assistance
Banks also provide customer care services that can assist customers if they are encountering problems with the application. Customers who have questions can phone, chat, or email the support team for assistance. When dealing with fraudulent transactions, you may also use their assistance to get your debit card frozen by the bank online.
10 Important Banking App Features That Increase Retention and Customer Experience
These ten features for your banking app can enhance consumer satisfaction and loyalty.
1. Security authentication
One of the most crucial considerations when creating banking solutions, whether it be a mobile app or an online transaction gateway, is security. Every day, banks manage significant sums of money, thus they cannot afford to be insecure.
2. Quick payments
Worldwide, instant payments have become the norm. Customers of banks don’t want to make payments in person or by writing a cheque. They anticipate being able to transmit payments instantly with only a few touches on their banking applications.
Customers are increasingly sending money to their pals through peer-to-peer transactions. In a 2022 survey, 45% of participants indicated they sent money to friends and acquaintances via a peer-to-peer transaction service.
3. AI-driven chatbots and interactions using natural language
Chatbots with AI capabilities can improve the accessibility of financial software. Customers could be reluctant to use a banking app due to the high level of risk involved. They don’t want to unintentionally transfer money or join up for anything. To obtain the data and services they require, however, users must continue to utilize the app.
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4. A fluid Omni channel experience
Bank customers can contact them in many different ways. They may utilize the app, phone the customer service department, send emails, and even go in person. The bank must make investments to make these channels streamlined and simple to use. But with multichannel, clients only have more options for getting in touch with the bank.
5. Tools for financial planning
A lot of information on users’ financial behavior is generated by banking apps. It can reveal where they shop, what they buy, and other details about their spending. Financial organizations can utilize this information to advice consumers on budgeting their money.
6. Turn off any in-app alerts.
Clear in-app alerts are more about an app’s essential functions than it is about its features. Its broad user base may find banking applications difficult or even disconcerting, as we have mentioned.
The applications contribute to a better customer experience by keeping users secure. When a suspected fraudulent transaction occurs, the app should notify users and, in high-risk scenarios, require them to confirm it.
7. Contactless and NFC payments
Near Field Communication, or NFC, is a feature on the majority of contemporary cell phones. Instead of carrying their cards in their wallets, customers frequently store them on their phones. Banks may streamline their services by providing the answer via their applications.
8. Full banking knowledge
Try to provide the whole banking experience through the app while developing a banking application. The software should function like a bank in the hands of your users, and in-person meetings should only be required under extreme situations.
9. Simple subscription administration
Customers frequently have to cope with recurrent monthly costs as more services go towards subscription models.
With a subscription management function, customers can better manage them. They won’t be required to fill out forms or take advantage of free trials. They may also conveniently keep track of their subscription-related spending with the help of this function.
10. Budgeting and expense control
Users may control their spending with the aid of a variety of applications. However, banking applications have access to more financial information about users than independent apps. As a result, banking applications may assist users in creating budgets for single people or even shared housing.
Process of mBanking App Development
Process defines your app. To transform vision into a reality a defined process is needed. Here is the process you need to develop your desired banking apps.
- Ideate and Define your Niche
You must pick which kind to use so that it can support your idea. Therefore, you must first choose your target audiences after the ideation phase for app creation is complete. Before continuing, you should offer responses to a few questions to make sure you are not encouraging injustice and that the idea is deserving of your time and work. What will your app’s MSP be? What will set you apart? Who are your competitors? What is the purpose of your app? What qualities ought to be present for your intended audience? Who are the potential users?
- Market Research and Competitor Analysis
Businesses that are continuously successful believe in devoting time to comprehensive study and analysis. Even though you may have a broad understanding of your company, clients, and sector, you must go deeper to be successful. The key to success is customer retention, which can only be reached by thorough market research.
It’s crucial to be aware of the competition before beginning the app development process. You may make a superior decision thanks to research by comprehending market trends and customer desires.
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- Requirement Gathering
You are now fully aware of every aspect of your app, including the target market and the competitors. It’s time to gather all the materials and specifications needed to accelerate the creation of banking applications. Gathering requirements will save you time, and saving time will save you money.
- Build your App Wireframe
Wireframes give structure to the idea. Everybody thinks of a wireframe as a blueprint, but it’s more than that. Your program’s look and feel as well as its features will be shown. If you are a non-technical person who finds working on the technological stack difficult, several experts suggest hiring a mobile app development company for further assistance.
- UI/UX Design
An app’s goal is to provide users with a polished experience that is seamless and easy to use.
The popularity of an app is based on how much its customers use all of its features. The aim of UI/UX design is to produce top-notch user experiences for mobile applications. These interactions ought to be enjoyable, user-friendly, and straightforward.
- MVP
An MVP is the simplest iteration of your app. A “Minimum Viable Product” should be as simple as it is practical to make. It is a condensed version of your final program that only contains the functionalities needed for distribution to beta or test customers. MVPs evaluate your ability to give your clients an engaging experience.
- Development
Developers demonstrate the magic of code at this step. The stage of development that your app totally depends on once you’ve chosen the MVP. This stage includes both the actual coding for your application and its actual execution. You could anticipate receiving intermediate builds from your developer to utilize on your device because development is sometimes done in phases.
- Back-end
The server-side and database objects needed for the auxiliary features of your mobile app are included in this section. If you wish to offer mobile capabilities, you might need to modify an existing back-end platform.
- API
An application can connect with a database or back-end server via an API or application programming interface. This programming interface is also used to create GUI components.
- Front-End
An end user will engage with a native mobile app’s front end. Mobile apps often employ a back-end and an API to handle data, creating interactive user interfaces. An app may have local data storage if it enables users to function sometimes without an internet connection.
- Quality Assurance
Tests instill confidence towards the app. Everyone wants a smooth experience, and testing is the only way to get there.
To ensure the dependability, usability, and security of an app, thorough quality assurance (QA) testing must be performed during development. Testing, which makes up a sizable portion of our whole banking app development process, is essential to an app’s future success. To develop a high-quality mobile app, a comprehensive mobile testing plan is required.
- Deployment
Before a native mobile app can be downloaded, it must be submitted to the app stores, which include the Apple App Store for iOS apps and the Google Play Store for Android apps. Before you can publish your mobile app, you must register as a developer with the Apple App Store and the Google Play Store.
The Cost of Building an mBanking App
Everything depends on the complexity and appearance of your app. A functional breakdown, a UX/UI cost, the number of third-party integrations required, developer rates, the participation of a quality assurance specialist, and the project manager are all included in the detailed estimates. As you can see, a variety of factors affect pricing.
The overall price to create a banking app ranges from $45,000 to $300,000 depending on the project’s complexity, location, and the cost of employing app developers.
Factors Affecting the Cost to Develop a Banking App
It is difficult to determine how much it will cost to design a banking app. The entire budget is significantly impacted by many factors and conditions. Let’s talk about the decisive factors:
- Requirement
The specs of the app are the first thing that affects the price of designing a mobile banking application. An app’s requirements have two parts, which are as follows:
- The breadth of the output
This functionality is really simple to understand. The set of features that the financial application must have or the effort necessary to create those features is referred to as the scope of work. The project’s size and the number of hours required to finish development grow along with the scope.
- The Application’s Complexity
Complexity is determined by the app’s vision, idea, and kind. Complexity in a product’s logic and concept makes it more difficult to create, test, and deliver.
- Development of UI/UX
Making a financial app with an easy-to-use interface may be a good idea. The user experience is improved by the seamless app design. Well-designed software must make use of simple terms, the appropriate quantity of white space, and the appropriate fonts. An effective app may help users rapidly find the information they require. Therefore, it’s always a good idea to invest money in a user-friendly design for your app.
- Developers’ Cost
The location of the developers you have partnered with to construct your app is another important factor that affects the price. The cost is calculated using the hourly rate of the team of 4–7 developers and the time required to develop a demography app. A US-based developer will often charge more than an Indian developer when creating an app.Hiring an app development company is always a suggested option for young entrepreneurs.
Time Taken in Developing Banking Mobile Apps
Additionally, bear in mind the value of time. The cost involved in developing a banking application is greatly influenced by the development duration. The creation of rapid prototypes will call for increased cooperation. The development of banking apps is a complex process and takes significant time. It takes 8-12 months to develop a banking app.
Words to Wrap
FinTech is thriving and will continue to expand as technology progresses; creating fantastic chances for creating an engaging financial app. FinTech has now become such a big part of our daily lives that we can no longer imagine our lives without it. Creating a banking app could seem like a challenging task that takes a lot of time and work. Make sure your project complies with all relevant regulations in addition to selecting features and a tech stack. The construction of a banking app is overwhelming due to the success of the FinTech sector. Finding the proper strategy, making the necessary plans, and connecting with the correct app development company would make the process a breeze.
