Mobile applications have changed the banking sector’s face with the emergence of mobile wallets, bitcoins and banking applications. Almost 1/3rd of the worldwide population are using mobile banking applications for completing their financial transactions. Even people have stopped using desktop internet banking and going to local bank branches thanks to top banking apps and mobile banking trends.
Banking application development rearranges internal banking processes & operations associated with bank clients significantly. A banking app is a more convenient and user-centric application and demands high-security & risk-free functionality. As Statistics recently predict, a massive number of 196 billion mobile apps are forecasted to be downloaded by consumers from the Google Play Store in 2021. As per DataReportal, around 5.22 billion unique worldwide mobile users justifies your decision to go for top banking apps for your business. Over 70% of customers from the four largest US banks use mobile banking applications
Customer experience and convenience stand behind the successful mobile banking app. You can’t make a competitive app without a user-friendly interface, superficial interactions and throughout features. If you are a financial service provider or entrepreneur looking for a mobile app development idea for your banking system, your search for that ‘idea’ ends here. In this blog, you will know a complete guide for mobile banking app development in 2021.
What Exactly is a Mobile Banking App?
A banking app is a mobile application that allows you to access your bank account’s details and complete transactions directly from your smartphone. Many banking apps help users view current balance, transaction history and deposit up to a specific dollar value. In addition, you can schedule payments, send individual costs and locate ATMs that are free for you to use.
Why should Banks Invest in Top Banking Apps & Mobile Banking Trends in 2021?
When you spend more than you have in your bank account, mobile banking apps can automatically move money into savings on your payday. They let you set controls on your cards to restrict spending. The applications can also send you account alerts and tap a button in a blank application to contact customer service representatives and pay them back. In addition, investing in top banking apps gives profit in cost reduction for banks or banking institutions. So, this is a win-win situation for process’s both sides, whether it be users or business owners.
Also read about: how financial apps simplify businesses.
Advantages of Top Mobile Banking App in 2021.
For customers: Such banking apps offer convenience, easy access to a bank account and various useful features.
For banks: such banking apps lower staff expenses, operational costs and even go paperless and environmentally friendly.
# 1 – Lower Expenses
Mobile applications save banks a lot of money. Here is how?
- Cover a larger area
Your business is not bound to branches and regional centers.
- Manage your high loads
People can’t process requests 24/7. Sooner or later, they get tired and start making mistakes while automation doesn’t have such issues.
- Reduce customer services cost
You need fewer employees, no need to tolerate related expenses.
For example, mobile transactions are ten times cheaper than ATM transactions, only 0.08% per each. Compared to 0.85 cents for an ATM transaction and $4 for a branch one.
# 2 – High Return on Investment (ROI)
The exact cost of top banking apps depends on the platform, features and UI/UX design. But there is one thing for sure: software development costs a lot. There are several ways how mobile banking returns investments – people make transactions often more engaged. Mobile banking apps not only increase return on investment but also enhance customer loyalty.
# 3 – Better Customer Experience
Top banking apps offer more benefits to customers. They are more secure and more convenient. One-third of banking app users say that mobile experience is the only reason they still stay with their current bank.
# 4 – Additional Marketing Channel
Whether you are introducing a new insurance package, enhanced credit limit or new in-app features, you can notify customers about it right in the application. Many banking apps are personal dashboards, messages or push notifications. For instance, BNP Paribas observed a 60% increase in App Store rating after targeted push notifications.
Reasons for top banking apps usage in the United States are shown in the figure below:
Market Situation – Mobile Banking App Development in 2021
If you want to get the best outcome from mobile banking app development in 2021, let’s check out the current market tendencies and target audience.
Mobile Banking Trends
There are various facts and stats about mobile banking development that are useful to pay attention to:
- In 2019, 1.75 billion users will handle banking operations via their mobile devices
- The value of mobile payment transactions reached $78.09 billion in the USA in 2018 and expected to reach $189.97 billion by 2021.
- The leading worldwide banks have invested almost $80 million
- The top reason for using mobile banking software in the USA is convenience which is mentioned by the 45% of respondents
Competition among financial service providers has decreased as many small US banks merged or closed. At the same time, several total banks’ deposits have expanded and enhanced by 300%+, 2016 year. Research also represented the increasing traction of banking app users in emerging markets. Here are some targeting audiences of a mobile banking development project.
The Targeted Audience of Top Banking Application
The markets in the US have had a boost of 50% among the occupants who use banking apps. McKinsey’s above report reports that even inferior people in the Philippines showed a surprisingly high interest in mobile banking technology.
The market has not yet utilized the benefits of mobile banking apps. Banks have only just started to online their services. The number of banking app users are forecasted to account for 47% of the population in 2019.
At present, the most adoptive market of mobile financial apps and this trend is still growing.
There is often an expectation that the target audience of banking applications are tech-savvy millennials, but you might be surprised by the actual result. 45% of users between the ages of 50 and 60 are actively using banking applications. The data of mobile bank app users are shown in the figure below:
The main concerning point is what users expect from mobile banking application development.
All in all, by 2017, mobile banking app users had increased from 27% to 46%. It means that the financial sector has experienced changes specified by reducing human interactions like visiting a branch or contacting customer support.
So, if you are looking for a user-friendly banking application, take a look at the top 5 choices.
Top 5 Mobile Banking Apps of 2021
App # 1 – Chime
One of the most popular mobile financial apps is a chime. It makes banking and other financial transactions easy and keeps all of your financial accounts in one place. Here are other reasons why you should consider Chime as the best banking app.
Chime offers a spending account with a Visa debit card.
Similar to a checking account at a traditional bank, Chime doesn’t offer paper checks. This banking app is ideal for paying your bills and spending. No monthly fees and no maintenance fees are required for this mobile app.
Chime saves money
Whenever you use your debit card, your purchase is rounded up to the next dollars. After that, the extra few cents are sent straight into your account to help you grow your funds.
Chime allows the bank to launch a secured credit card.
There is no credit card check or minimum security deposit required for this banking app. Your money in your accounts secures the card. With this card, you can enhance or improve your credit score. In addition, there is no annual fee or interest charged on this account.
App # 2 – CIT Bank
CIT Bank is available for both personal use and businesses. This banking app offers checking, savings, money market accounts and certificates of deposit (CDs). Here are two reasons why the CIT bank app is popular.
It is available with its e-checking account.
While the exact APY (Annual Percentage Yield) you earn depends on your account balance, you make interest on your credit. APY gives you the most accurate idea of what your money could make in a year. You can open an account with a little amount.
It saves money
Its saving account – requires a minimum $100 opening deposit – has three layers for savings, offering a higher interest rate for higher balances.
App # 3 – Capital One
Capital One is the best mobile banking app known for its credit cards and also offers online banking. This means you don’t need to visit a boring traditional bank. You just need to visit a Capital One Cafe for in-person banking with free Wi-Fi and space to relax.
Banking with Capital One is completed via its 360 checking and 360 saving accounts.
In the Capital One banking app, no fees necessary to open or use the accounts. It promotes its banking 24/7 while bank branches operate during regular business hours, ensuring you need to cash checks and make deposits.
App # 4 – Discover Bank
Like Capital One, the Discover bank app is taking its financial services in new directions with online banking accounts. You will find checking, savings and money accounts along with CDs and retirement accounts.
The credit cards of the Discover app are famous for offering cashback. It provides this service to its checking account holders, paying 1% cashback on up to $3,000 in debit card purchases. With no monthly fees for your accounts, you could get back $30 per month.
App # 5 – Ally Bank
As one of the leading institutions of online banking globally, the Ally bank app focuses on offering the best mobile banking experience. This app covers all basics for starters, including mobile check deposits, free money transfers, online bill pay, and an ATM locator. It also offers a clean-user-friendly interface. You can keep tabs on everything from your savings accounts to your certificate of deposit to your retirement account (IRA).
- It offers everything – whether it’s saving accounts or investment and retirement accounts or mortgages and personal loans – you need from a bank. It’s all online with 24/7 service.
- You can make deposits, set up direct deposits, pay bills, get cash and control your debit card all from your mobile app.
- Ally offers managed portfolios and self-directed trading for stocks, exchange-traded funds and mutual funds.
Mobile banking apps are fast essential tools that manage financial services effectively. Various developments in the future of mobile banking will continue to affect the way people manage their finances throughout 2021.
Mobile Banking App Trends to Watch in 2021
# 1 – Voice Command & Voice Recognition
Mobile banking apps use voice commands to help users get the services they need with minimal interference. This means you can access services faster and more efficiently without shifting through various menus or searching for the right option. While noted as a growth point last year, 2021 will see the integration of voice recognition AI, enabling enhanced security for transactions.
# 2 – Machine Learning & Chatbots
As many people use mobile banking apps, financial organizations can collect more data about how those services are using that information to improve the overall customer experience. Machine learning development gives power to bots that help direct people to address their current needs. With a combination of voice technology, ML will make the future of mobile banking more responsive and user-friendly.
When coupled with other technological changes, users will be able to provide users with improved customer service experiences and act as digital financial assistants.
# 3 – Big Data Fraud Prevention
If you collect and analyze data about how people use financial products and services, you can quickly identify inconsistencies associated with fraud. For example, if multiple purchases are being made in one state, the mobile banking app shows that the device is located in another. As messages and notifications can be delivered directly to the app, the potential fraud issues can be resolved quickly and easily.
Big data and its app to security and customer experience will continue to be a strong trend in 2021.
# 4 – Blockchain in Banking
Blockchain development in banking is an ideal method to facilitate faster payments and enhance security because of its way to store data. Less human interference will be needed in processing allowing for lower processing fees due to how blockchain handles data. The improvement in speed, efficiency, and security shift this technology towards the financial sector.
Main Challenges in Mobile Banking Application Development
If you are developing a mobile banking app, product owners and developers usually face challenges for the FinTech industry. The main challenges for mobile banking app development are:
- Tech challenges
- Security concern
# 1- Tech Challenges
The development of mobile banking apps is full of technical nuances that developers must take into account. The nuances are:
- Blur view
- In-memory data storage type
# 2 – Regulations
FinTech companies and banking apps are subjected to regulatory requirements. The principal regulations for M-banking apps are GDPR Compliance, PCI DSS Compliance and SEPA Compliance.
# 3 – Security Concern
Security should be correspondent with your M-banking application. Here are some security suggestions for your mobile banking app development:
- Check & review the safety policies
- Develop server infrastructure properly and select trustworthy data storage
- Use multi-factor authentication & digital signature in a mobile app for safe transactions
- Include high-end encryption in banking apps and card storages to get rid of data access
- Create a checker of password strength
- Identify the user’s device for security breaches before downloading app
How to Develop a Mobile Banking App?
Mobile banking app development enables the FinTech industry to improve operational efficiency, prevent bureaucracy, and boost the user experience while promoting banking services. So, how to make a banking app successful? You need to use some available key features in your mobile app banking development.
7 Must-have Banking App Features that Deserve Attention
#1 – P2P payment system
Peer-to-Peer payments is a technology that allows a user to send funds directly from their bank account to another person. When it comes to finding the most vital component of ongoing user engagement, the P2P payment system plays an important role. It helps organizations enhance investment in payment solutions to improve customer experience. PayPal influenced the market for more than a decade with this technology. However, now more and more banks, FinTech companies and credit card organizations are using person-to-person payment technology.
#2 – Voice Assistants
Voice technology is gaining popularity in the FinTech industry and banking sector, especially for completing financial transactions. Many financial institutions are using existing voice assistants such as Alexa and Google Assistant voice apps. But which voice assistant is the winner: Google assistant vs Alexa. This is the major concern among users as both devices have their advantages and disadvantages. So, deciding which is best between them holds up the users.
Even people with a range of sensory, cognitive and other disabilities were involved via voice assistants development and took part in the pilot programs.
#3 – Context-Aware Notifications
Imagine you sit in your local restaurant and you get a notification of a discount coupon for a dessert on your phone from your banking app. And it’s perfect if you complete payment through seamless integration with one’s banking application. You can also encourage customers to use their credit cards with special offers when they are at a shop.
#4 – Image Recognition
Now customers don’t need to visit a bank to open an account; they should just take a snap of a driver’s license and upload a picture to the banking app. That’s where image recognition comes in! This biometric software feature identifies or verifies a person by analyzing patterns based on the person’s facial contours. Image recognition technology is mainly used for physical security and ID recognition. This technology has received significant attention as it has the opportunity to be leveraged in various applications.
#5 – Advanced Security
The Bureau of the Financial Institutions found that 75 banks and credit unions’ losses due to data security breaches reached over $2.1 million US. Another new banking app feature is a fingerprint scanner that allows new customers to enroll in banking services via their smartphones. A voice security system is another feature that comes in advanced security. Voice security systems claim that each voice is as unique as a fingerprint.
#6 – Simple yet Secure Sign-in
Secure but time-consuming, multi-factor authentication technology irritates users, especially when comparing this method to authentication based on biometric data. This technology checks physical metrics to recognize and verify a person. This technology can identify a person’s voice, typing rhythm and even gestures. For example, an eye-scanning verification feature is integrated with its banking application for corporate customers.
#7 – Intelligent Chatbot for Customer Support
Providing a customized approach to your clients is the key to your success. Make sure your customers have 24/7 support and can get professional help anytime they need it. That’s where AI chatbot development comes in! This technology can easily support hundreds of customers at the same time without making them wait.
Even users can get assistance anywhere and anytime without visiting websites.
By integrating these features into your application, you will get user-friendly apps with high functionality for your banks and the FinTech sector. A significant concern about mobile banking app development projects is cost estimation. Here are some technology stacks used in the development of mobile banking apps are shown in the figure:
Cost of Mobile Banking App Development Project
As per Clutch’s estimation, the cost for developing mobile banking apps might range from $200K to $500K. But the main question is how to determine the cost estimation of an M-banking app? Here are some factors you need to consider before deciding the cost of banking app development.
- Development on mobile web, hybrid and native platforms
- Type, location of the vendor.
- The number of features & app complexity.
- UI/UX design complexity.
- Infrastructure at the back-end, connected APIs.
- Particular GUI, visual elements.
- Types of platforms-(Android, iOS, cross-platform, web, etc.)
Hopefully, you have now understood everything about mobile banking app development projects, from its introduction, reason, features, trends, market trends, the best mobile banking apps to cost estimation. But to get user-friendly and successful mobile apps for your banking, you need to get in touch with a dedicated mobile app development company – Appventurez!
How Appventurez Helps in Mobile Banking App Development Projects?
Appventurez can assist you in every phase of the mobile banking app development process. From fleshing out an idea to launching in the app store, we have the industry experience essential to make your financial app streamlines attractive and commercially viable. Our dedicated team of developers can guide you through the twists and turns of on-demand app development, simplifying an often complicated process. If you want to know more about M-banking applications, get in touch with our experts!
Co-Founder & Managing Director of AppVenturez Mobitech. An entrepreneur who is tech-savvy and aims to build the largest software business through technological innovation, keen business strategist and a passionate technocrat. He firmly believes in learning and earning by planning and performing.
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