Digital financial technology, or “fintech,” is a fast-expanding field. Innovative methods such as blockchain technology, contactless payments, cloudification, machine learning, and artificial intelligence are changing the way individuals handle their finances. Over 2.5 billion people, or roughly a third of the world’s population, are expected to use online banking systems by 2024, and this demand shows no signs of slowing down. This situation offers several opportunities for financial software apps. In this article, we will discuss how to start a banking app and all the necessary steps used to build a mobile banking app.
This section discusses the potential advantages of banking app development (please, check the Topflight Apps entry to learn more):
Customers are more likely to utilize the bank if it is available 24/7, which boosts transaction volume and earnings. Customers are more satisfied when they are offered digital support rather than traveling to a physical location.
Having fewer bank branches means spending less on overhead like rent, employees, and security, freeing up funds to expand the company’s reach and introduce new products and services.
When a large percentage of a bank’s audience uses its mobile banking app, the bank has a golden opportunity to learn more about its customer’ habits, preferences, and other factors. With all these analytics available, businesses are better able to identify methods to increase the loyalty of current customers while also drawing in new ones.
The costs associated with protecting cash and physical bank branches are high and grow exponentially with the number of locations being protected. Digital banking isn’t immune to the need for safety measures, but these can be created and implemented on a massive scale with less cost.
From these real-life examples of building a banking application, you can get a deeper insight into why mobile banking is so important in today’s digital age:
Chase Bank’s app combines access to a wide variety of services. There are many valuable features, including the immediate P2P money transfer known as Quick Pay, the check-scanning feature known as Quick Deposit, the ability to lock and unlock a lost credit or debit card and request a replacement, the ability to set budgets and savings goals, and the collection of personal offerings known as Chase Ultimate Rewards.
Customers of Revolut can use 120 different currencies to make purchases, send and receive money with other people, participate in the stock market, and withdraw cash from ATMs in over 200 different countries at the current exchange rate. Revolut currently serves customers in approximately 40 countries, personally and professionally. The bank provides three subscription options: the free Standard plan, the Premium plan with additional features and benefits, and the Metal plan with unique metal cards and other perks.
Chime is a financial technology company providing consumers with Internet banking access. Chime offers several unique benefits, such as automatic savings, overdraft protection, and early direct deposits.
Wells Fargo is an international banking and financial services corporation. Wells Fargo’s special features include mobile check deposits, account alerts, budgeting and expenditure tracking tools, and the option to send and receive money with Zelle. Wells Fargo also provides a selection of credit cards that come with bonuses and other perks.
With more people using mobile banking comes more competition, so it’s more important than ever for a bank’s app to live up to all user expectations. Let’s examine the factors that need to be taken into account to make this happen.
When a company is dealing with private information, customers expect the highest level of security guaranteed. Safeguarding financial data, such as transactions and credit card information, should be the top priority of financial institutes. All applications should support two-factor authentication using SMS or email codes and biometric, touch, or facial recognition options for fast sign-in.
Apps need either customized code or expensive third-party interfaces to support features like geolocation, which helps users identify a nearby ATM, or the ability to display transaction information on a smartwatch. Since these integrations are strictly tested and backed by industry-leading businesses, they often prove to be the superior choice in terms of efficiency, security, and cost.
Financial institutions can save money on mobile banking app development, regular operations, risk management, and regulatory compliance by adopting cutting-edge technologies like machine learning, cloud computing, and blockchain. When clients can open a bank account remotely via their smartphone, it’s impossible to downplay the significance of the mobile-first approach. In this case, collaborating with a firm that specializes in fintech and banking mobile app development can ensure not only a reliable and complete app but also one that is up-to-date, safe, fast, and inexpensive.
Let’s take a deeper dive into the fundamentals of making a mobile banking app and steps on how to make a banking app:
Building a mobile app for financial services begins with market research, just like any other type of software. Business analysts and project managers work together to identify a market niche and target audience, as well as gather intelligence on the nature, strengths, and weaknesses of existing competitors.
The second phase involves the team conceptualizing the project, including usage scenarios, key features, etc., based on the information acquired in the previous phase. At this point, it’s also crucial to pick a technology stack that works for the budget and the company’s needs.
MVP is the pre-release version of the software that is functional but lacks some desirable extras. In this way, businesses can save money by developing a prototype early on to test out several lines of reasoning and collect user feedback before committing to the full project. In addition to demonstrating the value of the product to potential backers, an MVP can help gain user confidence.
The goals of the testing phase during app development should be to guarantee a smooth user experience and complete safety. A bank’s prestige can be ruined by even one case of fraud. All features and functionality of the mobile banking app being developed should be thoroughly tested, including server-side security, encryption methods, and user interactions.
Updating the software regularly keeps people interested, and it can adapt to new technologies as they emerge. Most of the additional functions can be implemented via ready-made secure integrations rather than being developed from scratch, saving both time and money.
Finally, it’s time to release and deploy your mobile banking app. Get ready to answer customer queries and maintain your app from time to time with security checkups and frequent updates. These practices play a critical role in the long-term stability and reliability of your app. By following the steps provided in this guide, you can successfully build a mobile banking app.
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