Since the art of mobile app development has drastically changed over the years, the approach of developing banking apps has not either been the same as it was a few years ago. The surge of the internet revolution and technological advancements have made our life easier not only in terms of establishing communication but also to take notice of day-to-day tasks.
Though mobile application development has changed the market dynamics and has turned out to be beneficial for many industries, the mobile banking app market seems to be ahead of the game comparatively. This is the sector that is fully leveraging the rise of the digital age and enhancing customer experience by taking everything online and making physical banking considerations so yesterday.
If any bank employee or representative is reading this article and pondering why is it so important to have a banking app or if it is then how to make a banking app that is feature-rich? Be patient with the article till the last and hopefully, you will get your answers.
According to Statista, about 57 million users avail mobile banking in the U.S. It won’t be wrong to say that the banking and the financial system are witnessing a remarkable revolution with the employment of smart banking solutions.
Many people get confused between the term mobile banking and mobile banking app. Both of them are contrastingly different. While a phone banking app requires an internet connection and an application installed on a smartphone, mobile banking will not need an internet connection and can be operated via SMS. However, unlike banking apps, mobile banking comes with limited features and is levied with extra charges with respect to services.
In this comprehensive guide about banking app development, we will be exploring a whole lot of banking apps, their benefits, features, how much does a mobile bank app cost, and most importantly the extensive steps of building a banking app.
An Overview of Banking App Development
If we closely observe everything around us and particularly heed to the digital space, we realize how crucial it has become for us to be enclosed with digital and smart devices for our own benefit. Each one of us wants a simplified life where everything can be attained at our fingertips, whether it is the food we are craving to get a bite of or the instant fund transfer that we are in dire need of. The phone banking apps have made it possible for the users to do away with the long queues in the bank branch and filling up the form just to have the desired cash in hand.
Though there are innumerable benefits of mobile banking apps, payment of bills, money transfer, resolution of queries, etc. are some major ones that are being taken care of by an intuitive solution installed in your smartphone. Mobile banking apps have made it possible for users to conduct financial transactions remotely and at their convenience. This is why the requirement of on-demand app development for banking operations has taken the financial industry by storm.
Why You Should Invest in a Mobile Banking App?
Before delving deeper into knowing how to develop a mobile banking app, the businesses operating in banking and financial traditions need not one but many reasons for investing in a mobile app. There are tons of successful banking apps that profoundly boast their strength and urge the enterprises in similar businesses to seek inspiration from such as Loot, Capital One, etc. These apps were not built by keeping only the millennials in mind but also to leverage the users of all ages with phenomenal banking functions.
Apart from offering a variety of services and operations on the instant, the rising demand of users and the US banking landscape having convenient banking operations can be understood by the undermentioned stats.
- According to a 2018 survey, around 73% of customers use an online banking channel at least once every 30 days. (Source – Deloitte)
- Mobile banking has witnessed a surge in numbers during the COVID-19 outbreak. (Source – Forbes)
- 90% of users check their balance in mobile banking apps while 59% pay their bills. (Source – Statista)
- In 2020, the transactions using digital medium expectedly reached an annual value of $726 billion. (Source – CNBC)
- 8 out of 10 Americans prefer digital banking over physical branch visits. (Source – ConsumerAffairs)
- One of the studies found that nearly two-thirds of millennials have increased their mobile banking usability in the last year. (Source – PR Newswire)
A bonus statistics data that I intentionally passed over to mention up above is that – “A recent TechRepublic report reveals that people often feel apprehensive about using mobile banking apps as they do not want their security to get compromised.” The significance of this report needs to be understood by everyone who is going to be a part of the mobile banking app development.
It is not just another mobile banking app with the usual features and enticing animated UI you should be focusing on creating (check out this post – Top 10 Trends of Mobile App UI Design). With the development of mobile banking apps comes great responsibility and therefore developers with app building teams need to be extra concerned about app security to prevent any type of phishing or hacking.
4 Considerable Advantages of Banking App for Customers
There are around 57 million mobile banking users in the US. We have our smartphones with us all the time and thus we resist going anywhere else for putting our customary tasks into effect. It is because we know that our device has an intelligent app installed that will watch out for our activity and corroborate our needs. Though banking apps in our phones immediately take care of a wide range of troubles for us, the instant notification allows us to know about changes, or low balance alerts, etc. By the way, notification alert is one of the benefits out of many that mobile banking apps sustain. Banks that have gone mobile or are thinking of doing so will be having immense benefits in terms of leveling up their service quality and expanding their customer base.
Let’s have a look at some major features of mobile banking app.
Time-Saving With Zero Cost
Mobile banking app enables users to do basic banking from the comfort of home at their convenience which means you do not have to visit a branch, stand for hours in a long queue, and get annoyed with paperwork to eventually know your processing is still going to hold off on due to some reasons. There are many mobile banking apps in the market that even let account holders deposit checks by uploading the picture of the same in the app. On top of all, unlike mobile banking, the apps come with zero downloading and maintenance costs.
24×7 Access to Online Banking
It was the time when banking hours were predetermined and you were kept within bounds to visit only during a specified time of the day. Though the rules have not been altered, the banks now let users decide when they want to avail of the features by taking their service round the clock. This is one of those highlights most mobile banking app offers to meet the on-user demands. The liberty of availing the banking facility as per your own wish will truly change the face of the mobile banking app market in forthcoming years. The availability of bank personnel 24/7 helps customers to resolve their queries anytime they want.
Safe, Secure, and Fast Banking
Security has always been a major concern for users. The financial institutions and banks understand how important online safety is for customers and this is why they pay attention to employ security compliance features in their app such as gesture pattern lock and using encryption to protect important information and privacy so that customers can enjoy the banking facilities on their fingertips without giving security a second thought. Though there are a host of technologies affecting the future of fintech, the innovative apps and tools hold the power of transforming the traditional banking landscape.
A Host of Other Services
Providing added controls like requesting personal loans, activating credit cards, and banks sending quick notifications for investment opportunities to customers are some of the great advantages mobile banking apps come with. Banks have now started adopting a customer-oriented approach and thus focus on giving tailored options whether it is about providing secured and instant transactions or sending overspending alerts.
How to Develop a Banking App – Step by Step Guide
Though the above content might have given an overview of how evident it is for banks, financial institution, and allied businesses to invest in a mobile banking app, the construction process or how to make a banking app is now something you need to gain an understanding of so that you spare no efforts in making your app put others in the shade and garner millions of downloads. Developing a mobile app is a challenging process for developers. Before starting off any note, it is essential to know that there’s no tried and true method that works for making an app a successful venture. All you need to focus on is your business requirements without blowing your budget.
With that said, look at a step-by-step guide on developing a smart and productive mobile banking app for your users.
STEP 1 – Carry Out an Immensely Fortified Plan
You cannot entirely be dependent upon the developers by infusing all your requirements on their shoulders. As a product owner, you need to take responsibility for how you want your banking app to be. For that, it is important for you to explore the prospect of the market extensively. The more you know about the product, the more you will have the chance to erode the pitfalls that might arise and keep the pitch of the app that satisfies the needs of the customers.
There are many things that you might need to give thought to while conducting the research. Out of everything, you need to focus extensively on understanding customers and their behaviors which will eventually help you out to get the answer to the most important question – “how to make a banking app.” The things that you need to get the answers to while running in-depth market research are –
- Why do you want to build a banking app?
- Who would be your target audience?
- What are the problems it is going to solve for your target audience?
- Would the need of the hour demand providing a personalized experience to the customer?
- Who are your competitors? What features you can put forth in your app idea which can easily outshine the competitor?
STEP 2 – Sketch Out the Structures
Once you are done with gaining a clear plan of action through market research, it is now the time to connect with an esteemed mobile app development company where a skilled team of developers can understand all your requirements. The developers then map out the whole mobile banking app structure which would include the essential elements such as the feature of the mobile banking app, advantages, problem-solving components, etc.
That, in the developer’s language, is known as turning an app idea into a prototype. Many developers follow an approach of conducting a little survey on their own level to know what customers like these days in the app and what are the things that annoy them. Based on all their necessities, the developers create an app’s architecture. Developing an app is no easy feat at all, however, once you test your idea with the target audience, it becomes easy to shape the product on their terms.
STEP 3 – Choose a Budget-Friendly Technology Stack
The technology stack for mobile app development is like the structural integrity of the house. Just as a house cannot last without the right foundation, an app would not turn out rewarding until you decide to choose the right technology stack for your mobile app that should fit under your budget (check – How Much Does It Cost To Build Finance App?). In order to understand how to develop a banking app on a particular technology stack, you need to know what the technology stack exactly is? Technology stack is a set of programming languages and frameworks that are used to build web as well as mobile apps.
The technology stack not only gives your project life but also makes it scalable, and functional to requirements. Knowing the elementary approach of tech-stack would not be enough, you are also required to comprehend all the important components that are essential for the stacks such as – Frontend development, backend development, etc. The right selection of the technology stack should be done after careful consideration and analysis of a number of factors.
FINAL STEP – Development and Testing
The final step of your question on how to make a banking app ends with development and testing. This could be regarded as the most stressful stage of the mobile banking app development as it is going to be the final stage of the mobile app development in which the design would be conceived. This stage involves creating a wireframe using an intermediary programming language. This code can later be exported to create an app which again is not as simple as it reads. Once the developer gets the prototype and finalizes the visual design.
Once the app is developed, it is time to test its worth. The majority of product owners decide to test the app within the company by giving a prototype to the people and get their feedback. If everything goes well, the beta release takes place otherwise, the app after amendments is tested again and finally sees the light of the day by going for digital distribution.
Mobile Banking App Development Pricing – How Much Does It Cost?
Instead of beating around the bush, I will come straight to the point. The cost of developing a mobile banking application ranges from $50 to $80k per platform. On the contrary, one of the studies conducted by Clutch reveals that the average cost of developing complex solutions like mobile banking app costs an every of $2,00,000 which can go up to $5,00,000.
The mobile app building cost may vary depending upon the development company and the method they are adopting to create an app. That means it is nearly impossible to say anything about the development costs during the initial stage.
You might be thinking why is it so and if it’s unpredictable then how can one decide with the budget? Honestly, if you do the market research and read the case studies of another successful app, you’ll realize that there’s no one fixed amount that can ever be mentioned by the software developers. There are many things like vendor type and location, the complexity of UI design, development approach, features, etc. go when it comes to developing high-quality mobile banking apps. It is important to know that the final cost of developing a banking app will also include the preparation stage, time for quality assurance and communication, and fees for third-party services.
Also read, – How IoT Is Altering The Banking Sector?
Banking apps are undeniably one of the complex apps to be built as it involves intricacies like high-security compliance, personalized experience facilitating user needs, and tons of intuitive features like simple sign-in, real-time alerts, etc. Since the users of today’s era are aspiring banks to make their lives easier, the fintech companies and banks must understand this necessity and make it a priority to go with the demand of customers.
In this guide on how to make a banking app, we have covered every important aspect that seems vital from a development point of view but still, if you feel like knowing in detail about a particular thing, you can connect with the mobile app developers at Appventurez who have developed productive banking apps for various clients across the globe.
Co-Founder and AVP Technology at Appventurez Mobitech. A tech enthusiast who has broad expertise in delivering end to end software solutions. He is an expert technocrat ho has in-depth knowledge and is highly experienced in delivering solutions for Android, Xamarin, Ethereum Smart Contracts, ASP.net.
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