Banking apps have become the primary way people manage their finances and accounts. They offer instantaneous access to bank accounts, cards, transactions, payments, and more in one place. Mobile banking app development is a must for relevant businesses to provide an exceptional experience to users.
The convenience you provide your customers with a banking app is unparalleled. Your business will be rewarded with increased reach, engagement, and customer retention.
In this blog, we’ll look into the essential features, costs, and steps for banking mobile app development.
So, let’s hop right into it.
Important Features in a Banking Application
The features you choose play a crucial role in the success of your banking app. In this competitive space, offering something more and better than your competitors is mandatory for standing out. Let’s look at some features that you can implement to establish yourself as a tech-centric app.
AI-Assistant
In 2024, you need to offer something beyond normal chatbots to engage customers. That’s where AI assistants come into the picture. These offer complete support, from chats to voice navigation. They’re like a virtual version of a human assistant, guiding you through the bank.
As they are powered by AI and NLP, they can understand human voice, tone, intent, and emotions. With proper training, an AI assistant can be indistinguishable from a human one.
Compatibility with Payment Tools
There are multiple payment tools and methods available today. This includes electronic wallets, NFC, contactless payments, and more. You need to ensure compatibility with them to not leave anyone out.
Biometric Authentication
Security is paramount when we talk about banking applications. There’s no alternative to multi-factor authentication. More importantly, you need to develop biometric authentication features. This encompasses both Touch ID and Face ID.
Personal Financial Management
Customers expect more than just banking and account management in a banking app. With AI, you can integrate advanced analytics, insights, and reports to help your users manage their finances.
AI can analyze user behavior and spending patterns to provide personalized financial advice.
Gamification
Gone are the days when banking applications were meant to be dull and boring. With a pinch of gamification, you can make them more interesting to keep users engaged. This includes elements such as rewards, badges, leaderboards, challenges, and quizzes.
Gamification motivates users to achieve their financial goals and increases their loyalty to your banking app.
AI and Blockchain-Based Security
Security is simply uncompromisable in mobile banking app development. Blockchain and AI are major technologies that can enhance it.
For instance, AI can be used to track user behavior and detect anomalies. It can automatically trigger an alert in the event of suspicious activities in the app.
Blockchain can use encryption and distributed ledger technology to turn your app into an impenetrable fortress.
Banking Application Development Cost
A multitude of factors influence the mobile banking app development cost. Everything, from the app’s complexity to third-party APIs, plays a role. This makes it difficult to give you an exact number. Considering the most basic features required to develop a banking app, here’s a rough cost breakdown:
| Feature | Description | Estimated Cost (USD) |
| User Authentication | Secure login and registration functionality | $5,000 – $10,000 |
| Account Overview | Display of account balances and transaction history | $8,000 – $12,000 |
| Fund Transfers | Peer-to-peer transfers and bank-to-bank transfers | $10,000 – $15,000 |
| Bill Payments | Integration with bill payment services | $7,000 – $12,000 |
| Alerts and Notifications | Push notifications for transactions and account updates | $5,000 – $8,000 |
| Security Features | Two-factor authentication, biometric security, etc. | $8,000 – $12,000 |
| Customer Support Integration | Chat or support ticket system | $6,000 – $10,000 |
| Cross-Platform Development | iOS and Android app development | $15,000 – $25,000 |
| Backend Development | Server, database, and API development | $20,000 – $30,000 |
| Compliance and Regulations | Ensuring the app meets legal and regulatory standards | $10,000 – $15,000 |
| Testing and Quality Assurance | Quality control and testing of the app | $10,000 – $15,000 |
| App Design | User interface (UI) and user experience (UX) design | $12,000 – $18,000 |
| Contingency and Miscellaneous | Buffer for unforeseen expenses | $5,000 – $8,000 |
| Total Estimated Cost | $126,000 – $191,000 |
This cost is not set in stone. The actual project cost will vary depending on what features you add or remove.
Steps to Develop a Banking App
A significant amount of strategic planning goes into developing a banking application. As a business, you have to get multiple things in place before reaching out to a development company. Here’s a step-by-step guide on how to execute your idea:
Define Your Target Audience
Identify the potential users for your app and research their needs, preferences, pain points, and expectations. Then segment them into smaller groups based on their demographic, geographic, behavioral, and psychographic characteristics. This will help you tailor the app’s features to each segment.
We highly recommend you create user personas to exemplify your target audience.
Conduct Competitor Analysis
Conducting competitor analysis is the next step in mobile banking app development. You must analyze your competitors’ strengths, weaknesses, pricing, marketing strategies, and more. Here are some tips from us:
- Learn from their success and avoid their mistakes.
- Identify gaps in the market to find your USP.
- Benchmark your performance and set goals and expectations.
- Find out how you can stand out from your competitors.
Get the Necessary Compliances
Compliance is a critical component of the banking industry. It ensures that your app meets the security standards your customers expect.
For instance, if your app is in the USA or Europe, the Federal Financial Institutions Examination Council (FFIEC) and the European Banking Authority (EBA) are two authorities you should comply with, respectively.
You may also need to comply with the General Data Protection Regulation (GDPR) in the EU.
Design Some Mockups
If you have the necessary resources, create some mockups of how you expect the banking application to look. This will guide the mobile app developers on what colors, shapes, fonts, and elements to use in the app.
Create a Project Scope
This is the final step before approaching a development agency. Once you have decided on the app’s objectives, features, target audience, and design, create a project scope document that outlines the same. It should also include a timeline and budget for the project.
Approach a Mobile Banking App Development Company
As a premier mobile application development company, we have developed multiple successful banking and fintech apps. We have all the resources, technologies, and skills you need to make your project successful. Our dedicated fintech experts guide every step we take, ensuring the app meets customer expectations.
Partner with the best mobile app development company.
