Irrespective of how slow we call the adoption of technology in the finance sector, there is one transformational event that can not be ignored – a massive percentage of people willingly switching from desktop and branch-visiting banking to mobile banking.
Mobile banking apps have today become one of the primary ways in which people log on to their bank accounts and perform transactions. The attraction towards mobile banking is so high and prominent that banks, across size and geographical locations, are not just expanding into the online banking app development offering but are also looking for ways to make them new-gen technology-rich.
In this article, we are going to deep dive into the different facets of banking application development and the feature-sets that come together to define how much does it costs to create a mobile banking app.
A Peek Into the Mobile Banking App Market
The ease that banking apps come with – real-time access of account information, ease in transactions, card-less ATM withdrawals, etc – has led to the fact that every bank now comes with their own banking applications.
But does it mean that the time for entrepreneurs to join the bandwagon has passed? No!
There are a number of statistics that validate the need for a mobile banking application. Here are some prominent ones –
In a decade’s time, mobile banking apps have taken over the combined user count of internet banking, branch-visit banking, and telephone banking. We can only imagine how big the market will be in the years to come.
The Top Players That Every Mobile Banking App Development Company Looks Up To
These are some of the top banking apps that the mobile banking application development companies look up to as benchmarks and the users compare other apps with.
The experience that these brands offer have played a massive role in increasing the adoption of mobile banking apps in the industry by showing the users that the process can be extremely seamless and automated.
Another factor that helps these applications become revolutionary is the feature-set that they come with.
Let us look into some of those features.
Must-Have Features of Banking App
There are a number of features that come together to define a well-strategized mobile banking app creation process. In order to get an idea of which is the best one, it can be helpful to look into the reasons why people use banking applications in the first place.
While the image gives a good idea of the kind of features that must be considered when you are looking for answers on how to develop online banking application, let us reinstate the primary features.
1. App access
Like a majority of applications, a banking application also starts with authorization and registration. The sign-in option in the banking application should be simple but also highly secure. There are two options that brands generally follow when building a banking app – PIN entry and Fingerprint. A multi-factor authentication system can help secure the application to a great extent.
2. Account information
You should enable the users to access their bank account information – account number, balance, card number, name, etc. There are a number of success stories that highlight the need of showcasing the feature of checking balance and other information in the first screen that opens when the user logs in. However, even if it goes differently than your plan, at least make the sections easily accessible for the users.
3. Payment and transfer
The next must-have feature of a banking application would be the ability to make real-time payment and transfers. There should be a specific section for the transfer activities containing the ability to add beneficiaries, view account balance pre and post-transfer, etc.
At the payment stage as well, you should ask the users to put in their password/PIN or fingerprint to allow money transfer.
4. Transactions history
Another primary feature of a banking application is real-time transaction history. On a usual note, you should give your users the feasibility of viewing their transaction history for the period that they want, i.e custom date setting.
5. Push Notifications
A well-thought of push notification strategy can not just help you retain your customers but also increase the engagement levels in your application.
Generally, push notifications are divided in three parts:
- Transaction-based – notify users of everything related to their bank accounts
- Promotion-based – inform the users about offers, discounts, and deals
- Application-based – document submission or password change request
6. Bank and ATM locations
It is one of the most convenient features present in a banking application. You should integrate Apple or Google Maps in the application to help guide the users to the nearby bank locations and ATMs.
7. In-app chat
There are a number of ways chatbots make banking better. The number one is making banking accessible to the users on a 24*7 mode. A securely-devised chatbot can help keep updated with their account details, check if x amount was credited from their accounts, etc.
While these are the must-have features that define how to build a banking mobile app, there are a number of advanced features that can elevate the returns on mobile banking development services investment. They can be – regular payments, QR scan, integration of third-party services like investment portals, hotel or travel booking options within the app, etc.
Now that we have looked at the must-have feature sets of banking applications, let us get to the point where we look into the cost of banking application development.
How Much Does it Cost to Develop a Banking App?
The banking app development cost is dependent on a number of factors. Here are the top ones –
Mobile banking app feature-set is the first thing that contributes to the development cost estimate. The more advanced the features, the greater would be the development cost. For example, the more you move away from a standard mobile banking app and gravitate towards the integration of Blockchain for IoT in the application, the higher would be the overall cost range.
2. App design
There are a number of information present inside a banking mobile application – account information, money transfer details, customer service information, an active chatbot, etc. It is very easy to create a design which tries to add all the information in place. But what is needed and appreciated is minimalistic design – something that carries its own place in the mobile app design cost list.
3. Technology Integration
The other key factor that has a direct impact on the banking app development cost is technology integration. While we do suggest adding new-gen technologies like AI or Blockchain to future-proof your banking applications, it can increase the development cost to a great extent.
4. Location of the agency
The last element is the location of the agency. As you move from East to West, the cost of app development increases. The average hourly rate of mobile banking app developers in the US is usually in the $100 to $120 range, while in India it can be anywhere between $60 to $80.
All the elements come together to define the cost of banking application development. If you are looking for a numeric value, share your idea with our banking software experts. They’ll help you validate your app idea while giving you a costing estimate.
While you are working on your banking application idea, keep the banking trends into consideration which would help make your app 2021 ready.
Mobile Banking Development Trends That Will Rule 2021-22
Innovations in QR code scans and near-field communication technology will help customers manage their ATM transactions without fumbling to find their debit cards, while saving them from entering passwords in a public setup.
Voice technology will find itself getting adopted by the banking sector by a greater extent. Users will now be able to check their bank balance or transfer money to people in their contacts simply by initiating a voice request.
Greater integration of AI
This year will see a number of innovative use cases of AI in the payment & banking sector. Right from fraud detection to establishing a 24*7 connectivity between users and banks, AI and Machine Learning will be integrated by the banking institutions to a great extent.
Improved app security
Although the banking sector is still one of the most secure sectors, 2021 will see it become unhackable. Here are a few elements that we will be adding in the banking applications to make them breach-proof:
- Multi-factor authentication system
- End-to-end encryption
- Fingerprint authentication
- Real-time alerts
- Incorporation of AI to identify fraud instances, etc.
At this point, you have all the information needed to initiate a mobile banking application and the factors that will help you get an estimate on the project. The next step? Find a team of developers who can help you with the project. We are one of them.
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