Mobile Banking App: App Features, Benefits- Ultimate Guide
Mobile Banking App- One of the major beneficiaries of continuous digitalization is the finance industry. Consumers’ budgeting, investment, cryptocurrency trading, and other demands are already covered by fintech solutions.
Customers can manage their accounts and execute transactions remotely with the use of online banking services provided by banks. An account can be opened with only one visit to a bank location. Because of stronger user experiences and closely targeted USPs, digital-only financial institutions begin to outcompete traditional banks.
Consumers may use tablets, smartphones, and even smartwatches to manage their bank accounts and execute transactions. An online banking app development, it’s usually the next step for a bank. Because the majority of large banks now provide mobile banking apps, smaller banks must jump on board. At the same time, we’re seeing an increase in the number of mobile-first businesses, as well as partnerships, mergers, and acquisitions between traditional banks and mobile fintech startups.
The pandemic boosted demand for remote banking services even more. Cashless and contactless transactions are becoming increasingly popular. The number of new mobile banking users increased by 200 percent in early 2020.
The mobile banking industry is expected to grow at a CAGR of 12.2 percent from 2019 to 2026, reaching $1,824.7 million. Nearly a third of the world’s population is said to use banking apps, which implies that 23% of the population is still untouched, therefore banking mobile app development financial services have a lot of potential.
This post is for you if you’re thinking about mobile banking app development for yourself. If you doubt the feasibility of such solutions, let’s have a look at the following features and benefits of mobile banking apps.
Why prefer a Mobile Banking app?
When the coronavirus pandemic hit, mobile banking was already gaining traction, but the disruptions and restrictions created by COVID-19 have turned it into a need.
The allure of mobile banking is, of course, the convenience it provides: Because consumers carry their smartphones with them almost everywhere, a mobile banking app can assist them in taking care of a variety of financial demands at any time. It functions like a bank in your pocket or purse.
Mobile banking’s importance is amplified at a time when branch hours have been shortened and many bank call centers are no longer open 24*7.
There are plenty of benefits to having a banking mobile application that you will see further in an article.
Top 5 Banking Mobile App Features
Advanced Security with Fraud Alert
These days, you can never be too careful. When it comes to sensitive data, users want the absolute best protection against hackers and cyber theft.
For banking app development to be successful, you must first include a secure sign-in feature. You want to make it so that logging into a user’s online banking account requires specific procedures, but not so many that it frustrates customers.
There’s a thin line between being careful and being paranoid. A good banking app ensures that the sign-in process is quick and simple while also safe, providing the user with peace of mind.
Multi-factor authentication, for example, is a very safe technology, but it takes a long time to set up. This feature isn’t the best choice for a banking app because anything that takes a long time is never attractive to the user.
Biometric authentication, on the other hand, verifies individuals by examining their physical metrics. This powerful technology, among other things, can distinguish a person’s typing rhythm, voice, and even physical gestures.
Additions such as touch ID or voice recognition are also feasible choices. You can even include many security settings to give the consumer a sense of variety. This allows you to customize your mobile banking app while maintaining the highest level of security.
Another important feature to include in a banking app is fraud alerts. App developers, engineers, and programmers are becoming savvier as fraudsters and hackers get cleverer.
To avoid fraud, systems monitor thousands of transactions each second. The user is the first to be notified of any suspicious behavior is noticed.
CORE Banking Features
CORE banking, or centralized online real-time exchange banking, is a back-end system that handles transactions and updates almost instantly.
All kinds of services are offered via multiple digital channels thanks to cutting-edge banking software.
CORE banking software can be customized to specialize in retail banking, wholesale banking, or securities trading. Here are a few examples of CORE banking capabilities that are service-oriented:
Enrollment in new accounts and account management for existing accounts
Withdrawals and deposits
Calculation of the interest rate
Customer relationship management (CRM)
New financial products are introduced.
Maintenance of records
QR Code Payments
QR codes are becoming increasingly popular in mobile apps, allowing users to quickly and easily make purchases by scanning their code on a barcode reader.
Leading banks are already integrating QR code scanning technology into their applications, leveraging the QR code trend.
QR codes are an excellent option for both issuers and businesses looking to expand their customers’ mobile payment options.
Customers appreciate QR code payment solutions because they are simple to use, convenient, and give enhanced security.
Peer-to-peer Payment Systems
Peer-to-peer payments (also known as P2P) are an online technology that allows a user to transmit money straight from his or her bank account or credit card to another person.
The public’s acceptance of mobile payment options is beginning to explode, according to Jim Marous’ Digital Payment Report. If the banking industry does not want to lose its tech-savvy clientele, it must adapt to emerging trends in mobile payments.
While P2P payments have never been about making money, they are nevertheless one of the most effective ways to keep users engaged. Organizations are increasing their investment in payment solutions in order to improve customer experience and experiment with new payment methods, such as peer-to-peer (P2P) payments.
Your consumers can use Peer-to-Peer payments to give or request money directly from one other using simply an app. It’s an almost instantaneous method (whereas transferring money to a bank account can take a few days) that gives the consumer a sense of independence by removing the need to rely on a larger institution to execute a money transfer.
PayPal dominated the market with this technology for more than a decade, but now more banks and credit card companies are willing to accept person-to-person payments.
Paying bills via check is inconvenient, time-consuming, expensive, and harmful to the environment. It’s also not the most secure option.
Checks are lost or stolen in the mail system. They get misplaced and buried behind documents in the recipient’s mailbox.
Using a banking app to pay your bills also has plenty of advantages. Users can set up automatic bill-pay settings so that they never miss a payment, in addition to the ease of paying bills from anywhere at any time directly from their smartphone.
They can set up one-time or monthly payments, as well as customized email or SMS alerts to tell them when money is sent to them, account activity occurs, and more.
Users can pay as they go for varying amounts, such as utility bills, whenever their bill is due.
Setting up recurring payments with fixed installments for things like mortgages and car loans is the best way to go. When the bills are due, the cash will immediately be withdrawn from the user’s account, ensuring that they never miss a payment.
Top Benefits of Mobile Banking App Development
Having access to the bank 24*7
Mobile banking, unlike a bank office, allows you to access your account at any time — with a few restrictions, such as planned maintenance upgrades and unexpected outages.
You will save time as a result of the convenience of access. For example, mobile check deposit, which is available in most banking apps, allows you to deposit a check while on the move or from the comfort of your own home.
Consumers with pandemic-related health issues and other reservations about banking in person may benefit from mobile banking.
Getting the most out of your money
The finest mobile banking apps have evolved to make it easier for you to manage your money. Customers with checking accounts, for example, can use the Ally Bank app to manage their money digitally and maximize their savings potential. When the US Bank app’s algorithms detect money-saving opportunities or circumstances where an account is at risk of being overdrawn, consumers are notified. Varo, a federally chartered challenger bank, also offers automatic savings tools and ApexEdge, a third-party service that assists consumers in negotiating reduced bill payments.
Another feature of the mobile banking app development that can help you save money is spending alerts.
IOU stands for ‘I Owe You’ which is a document that acknowledges the existence of a debt. It’s simple to repay someone you know while you’re connected to your mobile banking app.
Banks throughout the country have partnered with Zelle to allow you to send money to someone in minutes via the bank’s mobile app instead of paying with cash or a cheque.
To send money, you only need the recipients’ email addresses or phone numbers. If your bank does not offer Zelle, you can typically transfer money to another person’s bank account if you have their routing and account numbers.
Banks are in the business of safeguarding your assets, which includes mobile app transactions. If you’re concerned about mobile banking security, there are steps you can take to increase security measures.
To sign into a mobile app, financial institutions frequently require a username and password, as well as extra security features to protect your account. To show that it’s actually you, multifactor authentication, for example, necessitates at least two types of verification. The account credentials (your username and password) come first, followed by a text message with a numeric code that must be entered to get access to the account.
Moreover, some mobile devices — and some bank apps — allow you to log in by scanning your face or fingerprint, providing still another layer of security without compromising convenience. “Biometrics could be really leveraged for authentication in mobile banking,” says Morgan of the ABA.
To keep fraudsters out, the security features allow you to lock or remotely disable your smartphone if it goes missing.
Your bank app may also allow you to share your location in order to aid in the detection of payment fraud.
Providing added controls
Consider a mobile banking app to be your money’s remote control. The application lets you deposit checks and send money to anyone at any time.
These restrictions are becoming highly advanced. Some bank apps, for example, allow you to activate a new credit or debit card.
It isn’t the only way that banks allow users to manage their cards. An increasing number of banks, including Wells Fargo, Ally Bank, Chase, and Bank of America, offer mobile apps that allow you to disable your debit or credit card if it is lost or stolen. It’s a good feature that can make you feel more secure in a panic. It’s also not necessary to call a toll-free number to switch your card back on.
Providing transparency into where your financial data is going
Many people use services like Venmo and Mint to share their bank information. It can be difficult to remember which company has what bank data depending on how many outside apps you use. As a result, a number of banks are changing the way data is shared behind the scenes to help clients understand where it’s going.
Providing you with customized options
If you’re looking for a group of people who share your interests, mobile banking offers a choice of options to cater to specific demographics.
For example, Daylight is a digital bank that focuses on financial concerns that LGBTQ communities face, such as decreased mortgage approval rates. Daylight has also collaborated with Visa to develop a debit card that displays account holders’ chosen names instead of their birth names, which may appeal to those who have transitioned their gender.
Name of Mobile Banking App in USA
The cost of developing an app for a bank varies between $100,000–$500,000.
How long does it take to build a mobile banking app?
What should be my priority when building a mobile banking app?
If you are a tech company looking to build such a product, focus on regulations and compliance. There are over 120 of those you need to comply with if you want to become a bank.
Do I build an app for Android, iOS, or both?
Both, but do your own research. The iOS market share in the US is 59%, and Android is at 41%. Your choice will depend on your customer preferences.
Is it better to build banking applications for smartphones or develop a mobile-friendly web version of my online banking option?
Yes, but just superficially. As you begin to build it, you will notice that you will need to recreate a significant portion of the present online app. The effort will be comparable to that of creating native apps.
Most financial companies are well aware that they will not be able to stay up with the competition or grow unless they develop apps for banks and other digital solutions. It’s become the standard strategy for financial app developers to provide services aimed at younger generations.
The current state of mobile banking gives plenty of room for creative solutions. It’s time to share your most ambitious ideas with your app developers or a trusted outsourcing partner if you’re a fintech startup.
If you’re looking for fintech app developers, Echo Innovate IT should be an ideal choice. Banking app development or its mobile version from scratch we offer provides you with a cross-functional dedicated team to bring your idea to life from start to finish, as well as maintain and perfect your web and mobile banking apps for years to come.
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