Building Mobile Banking Application; Steps, Challenges and Costing
June 28, 2022
Building a mobile banking application may not sound like a necessity but if you’re a bank or financial institution, having an app to cater your brand and associated customers becomes inevitable!
An app can not just help in understanding how banks can manage customers seamlessly but also facilitates in providing customers a broader view to stay connected with their bank and financial institution. Mobile banking application development is thus an imperative aspect.
According to a report by McKinsey & Company, the modern consumer will tend to use mobile banking app features instead of visiting the traditional brand and why not? There are a plethora of reasons to follow the same.
Mobile apps today are taking their pace in the banking sector due to round the clock access, effortless reviewing of transaction history and details, making deposits remotely, extremely safe and helps in transferring funds instantly and of course a lot in between.
So these were just some perks for the customers but even the banks and financial institutions can avail excusive benefits including-
• Limited operating expenses
• Better way to target customers
• Availing excellent return on investment
• Data analytics powered personalized services
• Increased value through push-notifications
Read More: Rise in Adoption of Blockchain Technology in Banking Sector- Explained
Challenges in the row while developing a Banking Mobile Application
There are always some challenges on the way which the developers might be facing during the entire process of app development in any fintech mobile app development company. Here’s a list of common challenges one can encounter-
• Costing
An efficient mobile app passes through various quality checks and these may require tons of developer’s efforts.
These developers are paid on hourly basis and differs according to different regions. As per the regions selected, there can be some additional fees, licensing fees etc. wherein the costing can increase.
For instance, building a moderate functionality application might cost you around $40,000+ excluding any marketing and maintenance cost in the interim. Just be sure you are equipped enough for this phase.
• Security
No matter which app you’re developing, security services are highly imperative! Banking applications are always at the most risk of cyber-attacks, and why not?
As the technology is taking heights, the risk of cyber-attack will eventually increase. Thus, having ample security measures can be the right thing to have.
Developers will be making use of machine learning and artificial intelligence algorithms which can help maintaining the security in the future.
• Regular Updates
Smartphone and application technologies will evolve with time. The regular updates are therefore launched by the developer for keeping the applications compatible with the new evolving technologies and new operating systems and smartphones operators.
To launch regular updates you do require dedicated teams, regular expenses and other resources.
• Transaction Approvals
We do have tons of transactions to be done through mobile banking applications, to clarify the same, one needs to clear up plenty of market compliance requirements in terms of security, privacy etc.
This can also point out other financial partners or clients which may automatically block out your financial application or any transactions in case any threats or vulnerabilities are detected.
Features to Include in a Banking Application
These are some basic features that fintech applications must have-
• Account Monitoring and Alerts
This seems the most imperative feature of all, especially in terms of any mobile banking software which provides users independence from having to open different and separate websites for checking balances, statements etc.
If you’re willing to develop the best in class banking application, add in this feature with the other perks including the ability to track spending, curating smart spending plans, getting started with investment tips and much more.
• Multiple Factor Authentication
To ensure better security of the users and financial data it is highly important to have multiple factor authentication protocols to be combined with varied security layers including passwords, OTPs, security PINs, biometric verifications and many different factors as well. Remember not to skip this features anyhow!
• Banking and ATM Locator
As per any iOS app development company, it is quite imperative to have a feature of in-built map for displaying information on brand and ATM locators.
The users can easily use the application and find the nearest branch or ATM where they can get their tasks accomplished easily.
• Customer Support
External customer support or support through websites is a different thing but having an in-built customer support is quite a useful option.
Now the majority of banks are making use of AI-supported chatbots for providing users with quick responses which can seem much more lucrative.
Apart from these the customer support can include direct contact information, chatbox, email address and getting specialist customer executive available on the spot.
• Payment Processing
Your banking application will be better useful to the users if one can directly make transactions through the mobile application.
Most of the banking applications are generally offering features including unique payment addresses, QR payments etc. These are appropriate features for sending and receiving money through the power of internet.
Read More: How Much Does It Cost to Develop a FinTech App?
Calculating Accurate Costing of Developing a Banking Application
Having an app cost calculator for developing a banking application is a must but not all companies offer the same.
Though the cost of developing a banking app may always differ based on varied factors. here are the factors that affect the cost of building an app-
• Features to be included in the mobile application
• Requirement of native app, hybrid app or a web application
• Number of platforms you’re willing to target with the app
• Developer locations or the regions to be targeted
• License pricing and app releasing certificates
• Hours invested in the entire design and development process
• Costs of app testing and bug fixing
• App marketing costs
• App maintenance costs
Once these factors are analyzed, only then an experienced team of experts can help you determine the accurate cost.
Final Thoughts
No matter if you are targeting android app development services or looking for the iOS one, a banking app needs a lot of parameters to be fulfilled alongside.
Starting from the right team of developers to the correct planning and plotting, there’s a lot in between! Having a banking app could be the right thing to do for the future.