Banking App Development: Build A Banking Application In 5 Simple Steps

Remember those days when people would have to go to a bank branch to make their transactions, fill in a lot of documents, and wait long hours in queues for their turns?

But thanks to the digital and mobile apps that take less than a minute for transactions, allow peer-to-peer transactions and wire transfers.

In the ever-evolving world of financial technology, most banks are taking the opportunity to change the landscape of the traditional banking sector by bringing revolution via innovative and user-centric banking applications.

These applications not only cater to the tech-savvy generation but also provide solutions to the long-term challenges faced by consumers in managing their finances.

If you’re also eager to shape a niche in this dynamic landscape, this guide will help you through the key steps to creating a banking application.

From understanding the user experience difficulties to handling the complex regulatory environment.

We will delve into the essential elements that can help your business bloom in the competitive world of Banking App Development.

So, let’s roll up your sleeves and dive into the complexities of creating a successful banking app that can captivate users and drive your business towards fintech heights.

The Path to Digital Banking Innovation: 5 Essential Steps

The Path to Digital Banking Innovation 5 Essential Steps

Step 1: Research

The first step for Banking App Development involves research means you need to start by searching the market for the app process.

For better research ask yourself a few questions such as:

What is your target audience?

Which banking apps are popular in the region and which features make them unique?

Who are the competitors?

What do users expect exactly from the banking apps?

Simply put, perform a detailed market analysis, and study the competitors and market conditions.

Cultural aspects, mentality, and user habits are very important factors that you must consider.

For example, mobile banking app development for the US must have a credit card payment feature as 70% of Americans have at least one credit card.

It means remembering the cultural aspects of the market you’re stepping into to get the best outcomes from your app.

At the end of the research step, you will know the following basic things:

  • User Profile
  • Market Share
  • Market Analysis
  • Market Habits
  • Value Proposition

Step 2: Prepare The Security Base

Security is the second most important thing to remember in the banking app development process.

Users have no concern that whether you are a startup or conventional banking looking to renovate mobile banking, they are only concerned with their high level of security.

Fair enough as they’re trusting an app with their money. So, you must develop a safe and secure banking app, ensuring data security.

Positive Technologies has published its findings based on the research of vulnerabilities and threats in mobile bank solutions for several large banks. They’ve discovered that:

  • In 13 out of 14 applications, attackers can access cardholder data from the client side.
  • 76% of vulnerabilities can be exploited without physical access to the device.

You are not only supposed to protect your app from the server side but you must also inform your customers and employees about cybersecurity.

You must also follow the security base to ensure the security of your app’s users.

Such as all the passwords of the users must be hashed first and then can be secured in a database.

Furthermore, a user must be automatically logged out from both front and back ends if he is inactive on the app for more than 15 minutes.

Step 3: Develop a Prototype

Your success in mobile banking application development lies in the number of interactions and the prototype is one of them.

A prototype is the simplified form of your app and it must contain the following elements.

  • App logic
  • App design
  • App structure

Prototype enables you to test your app on real users however it is far away from the final result.

It allows you to gather feedback, understand the features, what works and what does not work, and make changes accordingly. 

We as a professional banking app development company believe that building a prototype is the best way to validate the usability, functionality, and usability of your mobile banking app.

Step 4: Design UX And UI

The next step in banking app development involves designing UX and UI. This step depends on the information we gathered from the research stage, users’ interviews, and feedback on the prototype.

Now the design team gears up and starts working. Remember that a user-friendly interface design is one of the benefits of mobile banking applications.

Make sure to hire a smart UX and UI designer who will make a simple, intuitive, and user-friendly app design.

Your app should be easy to use and easy to navigate as it will enhance the user experience and user engagement.

Step 5: Develop the App

Now, here comes the exciting moment of the banking app development as you are all set to develop the app.

Now you should select the developing framework. If you are creating a banking app in Android or iOS, you may opt for native app development rather than react native as native app development is safer than react native.

If you are concerned about the tech stacks, then you need iOS SDK, Xcode, and Swift. For mobile banking applications in Android, such as Java/Kotlin, Android SDK, and Android Studio.

FAQs

What should be my priority when building a mobile 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 iOS, Android, or both?

Both, but do your research. The iOS market share in the US is 59%, and Android is at 41%. Your choice will depend on your customer preferences.

What is the cost of creating a mobile banking ?

The cost of developing an app for a bank varies between $100,000–$500,000.

Do I build an app for iOS, Android, or both?

Both, but do your research. The iOS market share in the US is 59%, and Android is at 41%. Your choice will depend on your customer preferences.

How much time does it take to build a mobile banking app?

Thus, the making period depends on the features and the customization required by the users. Still, with the support of our well-qualified and experienced mobile banking app developer, you can get your MVP ready in 6 to 8 weeks and proceed with the other process.