The widespread use of banking apps for mobile devices has become the standard, pressuring banks to embrace digital services. Since traditional banks can barely keep up with clients’ expectations for a smooth experience around the clock. It is important to understand that a fundamental shift is necessary to become a leader in mobile banking application development (here, you can find the Topflight Apps’ experience), even if it is obvious that issues like bureaucracy and a conservative mindset have the potential to slow the advancement of digitalization. In this blog, we will discuss what mobile banking is and how to build a mobile banking app.
Mobile Banking- The use, the meaning, and the scope
Mobile banking, often known as mobile money management, is the simple process of managing one’s finances via mobile devices, such as smartphones and tablets. Everything from checking accounts and making transfers to paying bills and even applying for loans can be done from a mobile device with the help of specialized banking apps. Mobile banking allows customers to execute transactions and keep tabs on their finances at any time and anywhere, going beyond typical banking hours and physical branches to improve accessibility and flexibility in the area of personal financial management.
Key reasons why you should start a banking app
Starting banking application development has a number of advantages, such as:
Catering to competitiveness
The primary reason behind creating a mobile banking app is competition. As SaaS (software as a service) has become increasingly popular, nearly all current financial institutions offer dedicated mobile applications. In addition, introducing a mobile app is a significant milestone for any bank.
Enabling customer value
A mobile banking application’s primary focus is always on personal engagement with customers. It implies that users would feel valuable and significant every time they use the product. Banks can improve LTV by providing a superior in-app user experience that inspires customers to actively participate in managing their finances.
Reducing costs
Banks are now completely paperless thanks to the introduction of banking mobile apps. This helps them save not just money but also time and effort. It’s also a chance to save money on the upkeep of brick-and-mortar locations. Last but not least, mobile app transactions are ten times less inexpensive than ATM transactions.
Improving communication and feedback
The mobile app gives businesses and customers another way to connect, which improves the user experience while conducting financial business. On the other hand, it boosts your revenue. The app also has a quick response time, handling customer service inquiries far more quickly than any traditional bank could.
Data privacy and security guidelines in the financial bubble
In order to start building a banking application, you should be aware of the security standards. Preventing identity theft, extortion, and financial crime requires strict adherence to data privacy and security standards. The rules governing the creation and use of mobile banking applications typically vary by region. This section discusses each security standard in detail:
GPDR
Regarding data security in the European Union (EU), General Data Protection Regulation (GDPR) is the gold standard. It requires all agencies distributing their mobile banking app development in the EU region to adopt required data privacy protection procedures, even if the company claims not to process personal and sensitive user data.
SOX and GLBA
Sarbanes-Oxley (SOX) and the Gramm-Leach-Bliley Act (GLBA) govern the security of financial technology information in the United States. Following GLBA, institutions are bound to plan for data protection and notify customers of their privacy rights as well as protect themselves from manipulative risks. SOX is intended to protect FinTech investors by preventing misleading financial reporting.
PCI-DSS
The Payment Card Industry Data Security Standard (PCI-DSS) is the most widely applicable law regulating the financial technology sector. It regulates how cards are used and gives users tools to protect their information. PCI-DSS is mandatory for any company that processes credit cards.
CDR
Australia’s Consumer Data Right (CDR) governs banking and credit transactions. The Consumer Data Right service ensures the safe sharing of sensitive information between authorized suppliers.
CP Act
The CP Act, or the Canadian Payments Act, establishes rules for banking in Canada. It adheres to standards for both brick-and-mortar and mobile banking.
Build a mobile banking app- Killer steps
Finally, let’s delve into how to make a banking app in 2023. Developing online banking software is a time-consuming and complex process. Before launching even the most basic mobile banking app project, you should think about the following factors:
Project planning and market research
No matter how tight the bank app development budget is, market research should be the top priority. In order to steer strategy, it analyses the project’s potential impact, identifies relevant niche trends, forecasts consumer behavior, and studies the activities of competitors. This allows for a more targeted approach to the project’s execution, emphasizing reaching the intended demographic.
Outstanding business strategy
There are three main types of online banking apps to think about when starting:
- Mobile banking, which is designed for personal accounts and offers convenience via smartphones and instant support.
- Client banking, which is designed for business accounts and offers more functionality via PC-installed software.
- Internet banking, which is accessible via web browsers and is available around the clock despite potential data security concerns.
Working on user-friendly UI/UX design
If you want to make a mobile banking app that outshines the competition and retains its users, you must focus on the design. The success of your mobile banking app development depends on its ability to provide a smooth user experience and an intuitive design. It’s important to strike a good balance between an appealing design (which is what initially catches customers’ eyes) and an intuitive interface (which is what ultimately keeps them around).
Incorporating banks API
There is no viable banking app development strategy without a secure bank application programming interface (API). With an API, you can connect your app with an existing bank’s infrastructure and handle customer accounts. The development of a trustworthy banking app is facilitated by APIs that guarantee a safe and reliable financial platform.
Integrating data protection
Your app should offer the following protection features for the customers:
- Safe app access (two-factor authentication, biometry, and strong user passwords)
- Encryption of Data
- Safe data storage (trustworthy servers, no local copies of sensitive data)
- Inactivity timeouts that force users to log out after a set amount of time has passed.
Wrapping Up
The development of secure banking apps hinges on two factors: knowing what users want and being able to deliver it. The first step is to study the industry and develop a strategy that works for your end goals and the target audience for your app. There are numerous banking applications available, allowing you to pick the one that is most convenient for you to build a mobile banking app.Creating a neobank can also be a great idea for a startup, and you can find all the information about it here: https://topflightapps.com/ideas/how-to-build-a-neobank/
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