The ultimate guide to mobile banking app development in 2024

With over 6.9 billion smartphone users worldwide, it’s imperative for banks and financial companies to develop products and services that can be easily accessed via mobile devices. During the past few years, mobile banking apps have grown in significance. With these apps, individuals can have seamless and secure access to their accounts, transactions, and financial insights. Business owners and developers alike have become increasingly dependent on mobile banking apps as the demand for accessible and user-friendly banking solutions increases. This comprehensive guide provides the insight you need to build a cutting-edge mobile banking app. 

Mobile banking app development: why should businesses invest in it?

Mobile banking apps provide customers with a host of benefits, making banking convenient and easy. Customers are more likely to be loyal and satisfied when they can manage their finances seamlessly on their mobile devices. Here are some of the key reasons why businesses are considering investing in mobile banking apps. 

1. Provides customers with a better experience 

Gone are the days, when customers had to visit the bank to check their balance, transfer money, or do any other banking service. Today, with mobile banking, customers are able to manage their finances conveniently from anywhere, anytime. It eliminates the need to visit physical branches and wait in long lines.

2. Reduction in costs 

An excellent banking app streamlines operations and reduces the need for extensive physical infrastructure and staff. As a result, businesses are able to save money.

3. Paperless operations and precision

By implementing a mobile banking application, you eliminate the need for cumbersome paperwork. It facilitates precise and efficient financial operations. Streamlining this process reduces costs, makes the operation more efficient, and contributes to the sustainability of the company.

4. High Return on Investment

Businesses expect high returns on investment when they develop mobile banking applications. This return can be viewed in many ways, such as better customer engagement, enhanced market credibility, increased revenues, and expanded customer base. As a result, businesses can expect long-term growth and profitability. 

5. Data-driven insights help tailor services to customers

Businesses can use banking apps to gather useful data about their customers, allowing them to tailor marketing strategies and services more effectively. Personalized banking apps can offer financial planning, customized product recommendations, and tailored offers that cater to each customer’s specific needs.

6.  Compliance and security

Financial security is more important to customers today. Developing a secure and compliant banking app allows businesses to build credibility and reputation by ensuring their customers’ data is protected.

7. Market expansion

Mobile apps allow businesses to reach new markets and demographics, extending their customer base beyond traditional boundaries.

Mobile Banking Market growth

As per the Market Research Future study, the desire for customers to have greater control over their finances is one of the major factors driving mobile banking’s growth. With mobile banking, customers can access their accounts, check balances, make payments, and manage their finances wherever they are. More and more people are using mobile banking to manage their money due to this convenience factor.

In the world of banking, customers want products and services tailored to their specific needs and preferences. The trend towards personalization is another factor driving mobile banking’s growth. Customers can personalize their mobile banking experience by setting alerts, choosing features, and even designing the app’s appearance.

The popularity of self-service options and mobile banking app development has also grown in recent years, allowing customers to handle their banking needs without relying on human interaction. You don’t have to visit a bank or speak with customer service to transfer funds, pay bills, or manage your account online.

Market statistics for mobile banking applications 

Market Research Future projects that mobile banking market revenue will grow from USD 1.3 billion in 2023 to USD 3.47 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 15.06 percent.

Source: Secondary research, primary research, MRFR Database, and Analyst Review 

Top mobile banking app examples you should consider for development

Mobile banking app development has enabled some leading banks worldwide to stay closer to their customers and maintain technological competitiveness. You can create your mobile banking app roadmap by taking inspiration from existing leading mobile banking apps.

• Citibank

A consumer-based financial services company, Citibank offers a wide range of financial services. Its headquarters are located in New York, United States. With its mobile banking app, the company focuses on the needs of individual customers with extensive virtual access.

• Bank of America

Approximately 11% of all US bank deposits are handled by this Charlotte-based investment bank. Mobile banking apps are available on both Google Play and Apple App Stores.

• JPMorgan Chase

The global banking industry is dominated by JPMorgan Chase & Co., one of the largest banks in the world. A total of 62 million households are connected to JPMorgan Chase. Globally, the bank has one of the largest customer bases.

• HSBC Bank

HSBC Bank is a leading UK financial services company specializing in banking, investments, and insurance. Among the services the company offers are commercial banking, investment banking, and personal banking. HSBC’s mobile banking app lets customers manage accounts securely from their mobile devices. It can be used for personal Internet banking. Additionally, HSBC offers a corporate banking app for businesses.

Ajman Bank 

Ajman Bank is a very popular Islamic financial firm established in 2009. Headquartered in Ajman, it is one of the premium banks with its shares listed in the Dubai Financial Market. In addition to its high-performing application, a notable aspect of Ajman Bank is the way it increased the user activity for cardholders in order to gain customer loyalty and interest. In their application, they built a reward planning system that would motivate cardholders to get the most out of their cards and stay loyal to them. You can read the Ajman Bank Mobile Banking Application Case Study here. 

How to create a mobile banking app? 

It is crucial to plan smartly when building a banking app because it can be long, complex, costly, time-consuming, or even unproductive. What is the process for developing a mobile banking app? How can it be streamlined? To start, one should validate the plan with the help of an expert mobile app development company. What exactly do these companies do? Let’s explore how and where to start developing a mobile banking application in detail.

1. Find out what the user needs and what are their pain points

Before developing an app, you must understand what the customers need and what problems need to be solved. Therefore, market research is essential

As part of the market research process, you need to identify the pain points, preferences, strengths, and weaknesses of end users, as well as competitors. Surveys and interviews can assist you in gaining insight into your target audience. Your app design will become easier to define and align with your audience’s expectations when such information is available

2. Setting up a functional and feature-rich app

Now that you know what features and UI elements are essential to grabbing users’ attention and gaining a competitive advantage, it’s time to set up a functional and feature-rich app. 

According to a study by Statista, 90% of USA users use a mobile banking app to view their account balance, followed by 79% to track recent transactions, 59% to make bill payments, and 57% to transfer funds. Moreover, the study revealed the reasons people use mobile banking apps, which may help you prioritize features for your application.

Using such studies as well as your own research, you can outline a set of features that are effective. In case you need inspiration, we’ve compiled a list of some significant mobile banking application features. However, you must remember that the number and complexity of features will directly impact the overall cost. Let’s look at the features now.

Core features of mobile banking

1. Two-factor authentication and biometric user authentication 
2. Account overview, setting, and personalization 
3. Card management 
4. Digital wealth integration 
5. Fund transfer
6. Transaction history 
7. Loan and credit features 
8. Currency converter 
9. Round-up savings tool 
10. 24/7 support 
11. Push notifications and account usage alerts 
12. Know your customer process 
13. ATMs and bank branches locator 
14. Feedback and reviews 

3. Designing the user interface and experience 

The next step after defining features and functionalities is to focus on good banking app design. UX wireframes and mockups are created during this process. Younger generations are more likely to use mobile banking apps than older generations. Users’ age also influences how frequently they access their smartphones and apps. You should consider such factors when deciding on the app’s user-friendliness, complexity, and navigation. You must also take into consideration the different screens and resolutions of different mobile devices.

• User testing and feedback on mobile app design

The purpose of user testing is to gather feedback on the design and user experience. As a result of this feedback, improvements can be made before the app is built. The user interface of an app is critical to ensuring that users can complete their tasks comfortably. But how will you accomplish that? Consider prototyping the app’s user interface and navigation flow, along with its layout and functionality.

5. Building the app 

During this step, the actual app is developed. Prior to starting frontend and backend programming, you must choose a technology stack and hire a development team. A development platform and technology stack, as well as establishing a development team or outsourcing the work, are part of this process. Choosing the technology for your mobile app development depends on whether you select native or cross-platform app development. 

You will need to use Java/Kotlin and Swift to build Android and iOS apps separately if you choose native. As Flutter or React Native are cross-platform frameworks, you can build apps for both platforms in one step. Also, apps built for financial purposes need to be secure and compliant.

6. Hiring a development team or outsourcing the mobile app development

This step can be combined with the previous one. However, we are discussing it separately as it is the most important part of the mobile app development process. To build your app, you have a number of options to select from. Such as freelancers, in-house mobile banking app developers, dedicated developers, or outsourcing an offshore team. Hiring dedicated mobile app developers is the most preferable option for most entrepreneurs. Although, choosing a development team also depends on several factors like the size and scope of your project, budget, etc. Know the pros and cons of each and select the best suited for your project carefully. This decision can make or break your project.

7. Mobile banking application testing and launch

Having completed the programming phase of your mobile banking app development, it’s time to test it inside out and upside down. You must test every aspect of the app. As many quality assurance methods as possible should be applied and high performance and uninterrupted experiences should be ensured. Once you have thoroughly tested your app and confirmed that it has no security loopholes, you can upload it to the respected app stores.

Here is where the mobile banking app development process ends, and the app’s journey begins. Your app will need to be maintained and upgraded periodically with the latest functionalities based on user feedback and technology trends.

Mobile banking app development cost 

Cost is the utmost important factor when planning to develop an app. According to Clutch, the cost of developing mobile banking applications ranges from $200,000 to $500,000. A mobile app’s cost, however, is determined by its processes and features. If you want to build a mobile banking application, we can give you a rough estimate of how much it will cost and how long it will take.

Below is a table showing mobile app development costs and the time required for the development of apps of different complexity levels.

Type of Banking App	Cost estimate	Duration
Simple app with basic features	$20,000- $50,000	3 to 5 months
Feature-rich app with a medium level of complexity	$50,000-$120,000	5 to 7 months
Highly complex app with a wealth of features	$120,000-$300,000	7+ months

Getting started with mobile application development for banking

Banking software development can seem like an arduous and time-consuming process given the difficulties involved. The truth is, sometimes it is. In the modern, fast-paced world, financial institutions must also comply with it. You can make your project successful by opting for professional mobile app development services. 

If you would like to add new, unique features to your existing banking app or need to build one from scratch, feel free to contact our team. OpenXcell delivers impeccable user experiences and drives business growth with its mobile solutions. We have developed more than 500 mobile applications, demonstrating our ability to deliver successful projects. Contact us today to get started with your dream project. 

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