Build a Mobile Banking App: 9 Key Steps to Create a Successful (2024)

With the service banking and finance app development, financial institutions will always be available within customers’ reach:

• Users can log in to their bank accounts, transfer money, manage their spending, and execute other financial activities anytime and anywhere, simply through a mobile device.
• Fast and secure access to the account with Face ID and Touch ID.
• Get immediate support without going to the branches.
• Provide a more personalized customer experience in comparison to branches. By implementing Machine Learning (ML) and Data Analytics (DA) to track and understand user behavior, banks have insights to improve their online services, such as user-friendly designs, more innovative features, etc.

There are several obvious reasons why traditional banks turn to innovative forms of providing financial services:

• Increase the ability to serve a larger number of customers.
• Reduce the time to approve the enterprise’s profile, work on related administrative tasks, etc.
• Reduce operational costs as banks can cut down the use of paper and costs associated with maintenance and staffing.
• Reach more users and communicate with them more effectively.

By implementing electronic Know Your Customer (e-KYC) technology in the online onboarding process, banks can minimize redundant tasks and bring customers smoother and quicker experiences.

• Growing Adoption: Mobile banking apps have become indispensable, with 98% of Millennials and 99% of Gen Z using them for various financial tasks like budgeting and tracking savings goals. This shift emphasizes the crucial role mobile banking plays in modern financial management.
• Revenue Potential: The mobile banking market is experiencing significant growth, with revenues of $772.96 million in 2022, expected to reach $1.87 billion by 2030. This highlights the immense revenue opportunities for financial institutions investing in comprehensive, user-friendly banking apps.
• Trends in Mobile Banking: Key trends include AI integration for personalized banking, advanced security features such as biometric authentication, and seamless payment tools like NFC and digital wallets. Additionally, the rise of chatbots and voice payments enhances user convenience and interaction (Darya Efimova, 2024)

Given the sensitive information contained in banking apps, security is a top priority. Essential security measures include:

• Secure passwords: Encrypt all passwords before storing them to prevent unauthorized access. Implement solid validation processes for password recovery to ensure that users can securely change their login credentials.
• Auto logout: Automatically log users out from the system after a period of inactivity on both the front end and back end. This reduces the risk of unauthorized access if a device is left unattended.
• Secure authentication: Employ robust methods such as one-time passwords (OTP), message confirmations, encrypted PINs, biometrics, and two-factor authentication (2FA) to verify user identity securely.
• Data privacy: Restrict developers’ access to sensitive information such as user tokens and passwords. Ensure that all customer data is stored on secure platforms to maintain privacy and security.

Ensuring the security of banking apps is crucial, as these applications handle highly sensitive information. Encryption, secure authentication methods, and stringent data privacy measures are vital to protect users’ financial data. KMS Solutions integrates these security measures into their app development process to provide clients with robust and secure banking applications.

To build a successful banking app, certain core features are non-negotiable:

• Account Management: Users should easily manage their accounts, view balances, and track transactions.
• Fund Transfers: Seamless fund transfers between accounts and to other users are essential.
• Bill Payments: The ability to pay bills directly from the app adds significant convenience.

To stand out in today’s competitive financial landscape, a banking app must incorporate advanced features that enhance user experience, security, and convenience. Key must-have features for a modern banking app include QR Code Payments, AI-powered Chatbots, Cardless ATM Withdrawals, and Voice-activated Virtual Assistants.

• QR Code Payments: This feature simplifies transactions by allowing users to scan a QR code for payments, eliminating the need for physical cards and enhancing security and convenience.
• AI-powered Chatbots: These provide instant, 24/7 customer support, handling various queries from balance checks to complex banking services. They offer personalized recommendations and insights into spending patterns.
• Cardless ATM Withdrawal: Users can withdraw cash from ATMs without a physical card, using a code or QR code generated by the app. This adds a layer of security and convenience.
• Voice-activated Virtual Assistants: These allow users to perform banking transactions and inquiries using voice commands, providing a hands-free, user-friendly experience and improving accessibility.

Integrating these innovative features not only meets the evolving demands of tech-savvy customers but also positions the bank as a forward-thinking institution, driving greater customer satisfaction and engagement.

Developing a prototype is crucial for a successful banking app. A prototype serves as an early model, simulating the app’s design and functionality. Start with a low-fidelity wireframe that outlines the app’s structure and core elements. This allows for quick delivery and initial feedback, enabling rapid iterations based on user input. The focus here is on core functionalities and user flow rather than design specifics.

Once the wireframe is approved, transform it into a high-fidelity digital prototype. This version should include detailed graphics, navigation components, color schemes, animations, and micro-interactions. High-fidelity prototypes provide a realistic representation of the final product, facilitating detailed user feedback on both the interface and functionality.

Testing the prototype with real users is essential. Conduct usability tests to observe interactions, identify pain points, and gather improvement suggestions. Analyzing this feedback allows for refining the interface and enhancing the user experience, ensuring the final product aligns with user expectations. This iterative approach increases the likelihood of delivering an intuitive and functional banking app that stands out in a competitive market.

Read More: The best practices for UI/UX Design In 2024

Creating an intuitive UI design for a banking app involves ensuring consistency and ease of use, which helps in building trust and providing a seamless user experience.

Brand Consistency

• Ensure layout, colors, icons, buttons, and forms align with the bank’s brand guidelines.
• Enhance visual appeal and foster user familiarity and trust through consistent design elements.

Logical Navigation Architecture

• Implement a flat menu hierarchy for simplified navigation.
• Enable users to access various activities from a single page without getting lost in multiple menu layers.
• Provide a high-level overview of the app’s logical architecture for easy feature location.

Responsive Design

• Ensure the app functions seamlessly across different devices and operating systems, particularly iOS and Android.
• Offer a consistent user experience regardless of the device used.
• Focus on making the app responsive to different screen sizes and resolutions.

Secure and Accessible Account Information

• Make the account balance feature easily accessible yet secure.
• Provide quick access to financial information while ensuring protection from unauthorized access.

Ensuring these best practices are followed during the design phase is essential for creating a banking app that meets user expectations and regulatory requirements. By focusing on a consistent, logical, and responsive design, banks can provide a more engaging and secure user experience. This approach not only helps in retaining existing customers but also attracts new users by offering a reliable and user-friendly banking solution.

Explore more:UX/UI case studies for Mobile Banking App

Frontend Technologies

The frontend technology stack determines how users interact with your app. KMS Solutions recommends using robust and scalable technologies like React Native or Flutter to ensure a seamless and responsive user experience across all devices.

Backend Technologies

The backend is where the core operations and data management take place. It is crucial for the app’s reliability, security, and overall performance. Using reliable technologies such as Node.js, Ruby on Rails, or Python ensures that your app can handle large volumes of transactions securely and efficiently. KMS Solutions ensures your backend is optimized for performance and scalability.

Security Technologies to Create Mobile Banking App

Security is paramount in banking apps. KMS Solutions incorporates advanced security technologies such as encryption, multi-factor authentication, and secure API integrations to protect user data and ensure compliance with financial regulations.

In the case of Asia Commercial Bank (ACB), the bank’s internal development team and KMS Solution’s digital team, after a thorough discussion, came up with the tech stack decision of React Native, Java Back-end, Monitoring & Log Tracing with ELK, Sentry, APM, K8s (Kubernetes), Gitlab CI.