Banking App Development Guide to Win in the Competitive Market
Mobile banking app development solutions provide flexibility and convenience with a simple click, regardless of branch hours or location. And with rising demand for banking services, the functionality of conventional banking app development has become a pivotal factor in order to keep their present customers happy and attract new ones.
If you want to start your own banking app development, you must have a clear understanding of how to create a banking app and how much it costs to create a banking app. Let’s see how to get started.
Banking App Development: Statistics
The value of the mobile banking app development market was $715.3 million in 2018, and it is projected to reach $1,824.7 million by 2026, expanding at a CAGR of 112.2% from 2019–2018. In 2021, North America had the greatest market share with 42.90% share. North America led the mobile banking app development market share in terms of revenue in 2021 and is expected to continue to do so throughout the forecast period.
- 97% of millennials and 89% of customers use mobile banking apps for financial management.
- Google discovered that six out of 10 mobile users prefer mobile banking apps over mobile websites and other platforms to manage their accounts.
- Recent estimates show that 90% of mobile banking app users check their account balance and 79% examine recent transactions.
Mobile Banking App Development: Why should banks focus on it?
In a technologically advanced world, it would be very convenient to retain customers with mobile banking app development. In addition to saving time and enhancing security, banking app development provides many advantages. Let’s find out.
- Keeping up with the competition:
Due to the popularity of banking app development as a service, almost all progressive banks prefer to have a mobile banking app. In order to maintain a competitive edge, mobile banking app development is a must.
- Enhancing customer experience:
Every time a user engages with the application, they will get a seamless experience. Mobile banking applications will effectively complete tasks without requiring a trip to the bank or a technical glitch. It will improve the customer’s experience with the bank by facilitating and accelerating financial transactions.
- Quick Response:
No banks with thousands of customers can handle client requests as quickly as a mobile banking app development.
- Improving Brand Value:
Clearly, the introduction of your mobile banking app development is a bar that indicates the bank’s prestigious standing.
Mobile Banking App Development- Must-Have Features
The first thing that springs to mind when asked “how to create a banking app” is the features that must be included. We have outlined a list of features for banking app development.
Account Management:
With the mobile banking app development, allow the users to check their account balance and expenditures. You can also allow users to set savings goals, develop investment strategies, and automate recurring payments.
Onboarding:
Give users an interactive tour of your banking app to guide them about the app’s features and functionalities.
Authentication:
Make signing in easy, quick, and secure. You can secure the app authentication using multi-factor authorization, such as Password and Fingerprint.
Push Notification:
There are three types of push notifications you must offer in your banking app, i.e., Transactional, Promotional, and Application-based.
Card Management:
Whether virtual, physical, or otherwise, the finest mobile banking app development must have the ability to issue, close, or alter PINs, and set limits for the card.
Customer Service:
With the banking app development, ensure that the users can access customer support and fix problems. In addition, you may improve the user experience by adopting a chatbot powered by artificial intelligence.
Bank and ATM-Branch Locator:
Make users’ life easier by allowing them to search local ATMs or branch locations, and operating hours and provide them with driving instructions.
Unique Features to make your Mobile Banking App Stand-Out
To give your mobile banking app a competitive edge and make it irreplaceable, here are a few innovative features that can be incorporated:
Cost Optimization Tool:
This tool will assist customers in budgeting intelligently and saving more money. Specifically, it offers analytic capabilities that enable you to find the cost niches with the highest prices.
5G:
For banking app development, it is time to investigate new markets and distribution methods, including wearables, 5G smartphones, and IoT devices.
Expense Tracker:
Including this feature in the mobile banking app will aid individuals in sticking to their budgets and saving more money. You can offer daily, weekly, monthly, and annual period choices.
Offers:
Special offers, discounts, and coupons may aid in establishing personal ties with customers. Including this feature for the banking app development will undoubtedly attract more customers and enhance revenue.
Chatbots:
They can handle 80% of customer queries that are typically forwarded to the contact center, saving time for your customer support personnel.
Wearable Apps:
Consider the possibilities for wearable technology to show financial information, issue notifications, and facilitate payments or transactions.
Bill-splitting:
This is another important function that enables users to automatically compute their individual portion of the bill at restaurants and other facilities visited with their group.
Cardless ATM Access:
Permit the customers to withdraw cash from the ATM by requesting account verification, with the banking app development, through text message or a phone call.
Step-by-Step Guide for Mobile Banking App Development
If there is no framework laid for how to create a banking application, it will be difficult to create one on-demand. Kody Technolabs has outlined steps on how to create a banking app with a seamless process.
Conduct User Research to Understand User Needs
Before beginning mobile banking app development, it is vital to do marketing research that identifies industry leaders and outsiders. Not only this, the research will also aid you in recognizing their strengths and shortcomings. This phase is mostly concerned with gathering customer suggestions. Once you understand the requirements of the users, you can build a list of specifications for your application and move ahead.
Define the App’s Features and Functionality
It is common to be eager to launch a mobile banking app as soon as possible, but the important features and functionalities must not be overlooked. For this purpose, create a prototype that reflects the features and functionalities of the app. It helps you to evaluate your concept.
Design UI and UX
The appearance or layout of a mobile banking app is crucial to its users. Customers are more attracted to designs with lively colors and simple functionalities. Before coding begins, the app designer will create wireframes, UX designs and mockups at this stage.
App Development
Following the approval in the previous stages, app development begins. The developers will execute the development process in two phases: Front-end Development, and Back-end Development.
To ensure that the final product meets your expectation, it is essential to communicate often with the development team and provide feedback. Mobile banking app development may take three to six months, depending on the level of complexity.
Testing of the App
It is a pivotal stage before the final release of the app on the market. To prevent problems and faults, the application should be tested in several ways and on multiple platforms to confirm its quality and ensure that all of its components are functioning in unison. While developing a mobile banking application, ensure that it provides a secure, user-friendly platform for conducting transactions.
Launching the App
After passing testing, a mobile banking app is released on Google Play and the App Store. It is essential to keep in mind that after the application is made available, the expenditures do not end. You will have to pay recurring fees for server capacity, integration with payment gateways, technology support, etc.
Support and Maintenance
As the competition increases, the market demands increase. Thus, with time, the mobile banking app must be enhanced and augmented with new features.
Cost of Banking App Development
The budget for mobile banking app development might range between $20000 and $100000 based on the complexity of the banking app development and the method. It will be far more cost-effective for FinTech startups and small enterprises to hire a development partner to assist in mobile banking app development.
The costs of iOS and Android app developers are comparable on average, but there may be differences when it comes to certain technologies and frameworks that impact the cost to create a banking app.
The location has a significant influence on the cost of hiring app developers. For instance, hiring a developer in the United States may cost 10 times as much as hiring one in India. Let’s take a deeper look at the cost of hiring app developers, which will decide how much it will cost to create a banking app.
USA: $40-$70 / Hr
Canada: $30-$59 / Hr
Europe: $30-$60 / Hr
India: $15-$40 / Hr
Summing up…
Customers nowadays are increasingly demanding, and they choose financial institutions that make their lives simpler. With mobile banking app development, account management, and transactions have become simpler and quicker than ever before.
