The first bank in the US was opened in Philadelphia on December 12, 1791, with a mission to overcome the worst financial situation and overwhelming debt in the US after the Revolutionary War.
As time progressed, banking revolutionized and began offering services even to the common person.
The biggest transformation in the banking sector emerged when, in May 2011, the Royal Bank of Scotland launched the world’s first fully functional banking app. This set the stage for a wave of innovation in the industry.
However, this wasn’t the first attempt to digitalize banking. On May 18, 1995, American bank Wells Fargo offered Internet banking to customers, which gained tremendous appreciation from people as they could perform several functions through their devices.
Surprisingly, the number of global online banking users exceeded 3.6 billion in 2023 and is projected to grow even further in 2025.
This also means more people are using their mobile devices to make transactions rather than visiting a bank.
And why would anyone want to visit a bank and wait in a long queue when most banking functions can be performed through a mobile app?
If you’re wondering why mobile banking is only adopted by first-world countries like Canada and the US, the following figures will prove you wrong:
- European online banking doubled from 2007 to 2018 and continues to expand.
- India remains the top mobile banking country in the world, with an ever-increasing user base.
- China accounted for over 1 billion active online banking users, the highest in the world as of 2025.
These figures are extremely motivational if you want to build a banking app in 2025.
In the upcoming years, the demand for mobile banking app development is expected to rise significantly as the world moves further toward digitalization.
Read More: 10 Essential Mobile Banking Application Features In 2025
Nevertheless, successful mobile banking application development is challenging, as it holds some hidden secrets that we’ll uncover in this post.
Read this blog before kicking off your mobile banking app development to win the race.
What is The Current And Future Mobile Banking App Market?
Before we delve into the features, benefits, processes, and costs, let’s discuss the current and future market conditions of mobile banking app development.
The figures presented here will surely boost your confidence if you’re skeptical about whether mobile banking app development is truly worth it.
- Mobile banking is currently valued at $772.96 million and is projected to reach $1,203.29 million by 2026.
- Furthermore, it is anticipated that mobile banking will achieve an all-time high of $1,873.23 million by 2030.
- The global market is predicted to grow, exhibiting a Compound Annual Growth Rate (CAGR) of 11.70% from 2023 to 2030.
- North America (USA and Canada) is the largest market for mobile banking, covering 42.90% of the total market.
- Asia-Pacific is predicted to experience the highest CAGR during 2026-2030, driven by the rapid adoption of mobile banking technologies.
- Capital One Mobile is the most popular and widely downloaded banking mobile app, boasting over 10 million downloads.
- Chase Mobile, with 8.9 million downloads, ranks second in popularity.
- Monzo stands out as the most popular neobank in the UK, with over five million users.
- Chime is the leading neobank in the US, ahead of other providers in terms of user base.
These statistics highlight the immense potential and growth trajectory of the mobile banking sector, making it an opportune time for development and investment in mobile banking applications.
What Is a Mobile Banking App?
It is an approach to create a mobile app by banks and other financial institutions to enable customers to A mobile banking app is a software application developed by banks and other financial institutions to enable customers to perform various banking activities, such as funds transfer, bill payment, mobile deposits, card management, and much more, directly from their mobile devices.
In short, as a bank customer, you don’t need to visit the bank—most activities can be performed from your mobile devices anywhere in the world.
What Is Mobile Banking App Development?
Mobile banking app development involves creating a mobile application designed specifically for banking services. This includes the design, development, testing, and deployment of the app, ensuring it meets the needs of both the financial institution and its customers. A well-developed mobile banking app enhances customer engagement and provides convenient access to banking services.
What Are the Different Types of Mobile Apps for Banks?
One of the biggest misconceptions about banking mobile apps is that they can only perform one or two tasks—primarily funds transfers and bill payments. However, a bank app can do much more than just these two functions. Below are five different types of banking mobile apps that are still uncommon but expected to see increased demand in the future:
1. Account Information Access
The most prevalent type of mobile app developed by banks is designed to provide customers with access to their account information. This app allows customers to view their deposits, loan EMI transactions, investment statements, and more. Such mobile apps are relatively easy to build, as they don’t contain complex features—users primarily view their account data.
2. Near-Field Communication (NFC)
This modern technology is not widely adopted by banks yet. NFC enables contactless payments, allowing two devices—such as your phone and a payment terminal—to transact seamlessly. As digital payment methods continue to gain popularity, the adoption of NFC technology is likely to rise.
Read More: NFC Guide: All You Need to Know About Near Field Communication
3. Mobile App Investment Banking
Banks also develop mobile apps to facilitate investment in bonds and shares directly from mobile devices. These apps cater to investors, enabling them to perform routine tasks from the comfort of their homes. With investment mobile apps, users can:
- Buy and sell mutual funds
- Invest in shares and bonds
- Manage their investment portfolios
4. Digital Wallets
Carrying your bank card at all times is not always secure, and many cardholders frequently misplace their cards. Digital wallets mitigate this risk by allowing users to store their bank card data securely. Users don’t need to carry physical cards, as digital wallets typically integrate with NFC solutions for contactless payments.
5. Quick Reply (QR) Mobile Apps
QR code mobile apps enable users to check out goods at offline points of sale and pay bills according to the generated list of items. This convenient payment method has become increasingly popular, especially in retail environments, enhancing the overall shopping experience.
Why Should You Opt for Banking App Development?
Creating a banking app can be beneficial for both financial institutions and users. Here are compelling reasons why investing in a banking app development is a smart move.
- Reduce bank operations
- Streamline daily operation
- Cut down expenses
- More satisfied and happy customers
- Generate more revenue
- Attract and retain more users
- Better return on investment (ROI)
- Personalized marketing and user experience
Read More: 8 Major Advantages Of Mobile Banking App Development
What Are the Trends in Mobile Banking App Development?
A mobile banking app development that lacks the latest trends and modern-day technologies tends to fail. Since people love trends. The only way to stay ahead is to make an application that meets the current market status.
Before getting started with banking app development, make sure to follow the trends, or all your investments will go down the drain. Read below to learn about the trends in mobile banking app development.
Biometric Security
The need for foolproof and invulnerable security is been higher in recent times than it was ever before. Banking mobile app development companies are implementing several ways to ensure that the app is completely safe, protected, and free of any hacking and cyber-attacks. Among many methods, the Biometric Security technique has been the most effective and safest way.
Biometric Security uses face, voice, and fingerprint recognition to access the app. This means it prevents unauthorized access to accounts and devices. For instance, if any stranger knows your password, they can’t access the app or make a transaction because the Biometric Security will prevent them from doing so.
2. Cardless Transaction For Cash Withdrawal
In the future, you won’t need an ATM card to take out money from the ATM as the ATM card in the mobile app will carry out transactions. This process is called cardless cash withdrawal and most of the banks have already implemented the feature. However, still, most of the banking apps don’t have these features – but in the future, they will certainly need them.
3. AI-Powered Chatbots (Chatbots For Swift Replies)
Why make your clients wait for hours when you can answer their queries in seconds? Sounds impossible! Well, certainly not! In this time of advancement and innovation, nothing seems impractical.
Yes, you can reply to even a million answers in a second with the help of Artificial Intelligence (AI) powered chatbots that provide personalized assistance to the client and are often better than a real human in less than a second. Sometimes, AI-supported chatbots might not give a satisfying answer. In such a situation, you’ll always have humans as an alternative.
4. Voice Banking Facility (Voice Feature For Better User Experience)
The biggest drawback of using technology is that humans are becoming dormant and sluggish. Typing can be effort-consuming, and sometimes it is if you’re typing a long message. For a more user-friendly banking mobile app, one can integrate a voice feature, which means the user will use his voice instead of his fingers to give instructions.
Moreover, this feature can also be used as an extra layer of security. That means the phone owner can only access the banking app to make transactions or any other operation.
5. Digital-Only Banks And Blockchain
Making a transaction through blockchain technology is the safest and least hazardous way to make a transaction. This technology enables untrusted parties to reach an agreement on the status of a database without using an intermediary. Blockchain technology, which was once considered the biggest threat to banks and their operations, is now used for various purposes.
What are the Benefits of Mobile Banking apps?
Mobile banking app development is mutually beneficial. If a bank owner or management thinks that building a banking app will only benefit customers while providing no benefits to the bank and its employees, they underestimate how advantageous it can be for the banks themselves. Several operations can be performed automatically without incurring significant costs.
In short, mobile banking app development is a win-win situation.
Advantages for Banks (Mobile App Owners)
1. Higher User Engagement
User-friendly and feature-rich mobile banking can help you achieve higher user engagement. Customers who have access to banking services via mobile apps are more likely to interact more often with their bank accounts, building a strong relationship between banks and customers.
2. Competitive Advantage
The banking landscape is highly competitive presently, so having a mobile banking app is crucial to staying ahead in this game. Having a banking app can help banks attract more customers and also differentiate themselves from their competitors.
3. No Need to Open New Branches
If a bank has a mobile banking app, then it can reach a huge customer base. There is no need to open new branches as you can even reach customers in remote and undeveloped areas.
4. Paperless Record Keeping
With mobile banking applications, financial institutions do not need to have conventional record-keeping methods. A banking app is a greater alternative as it is safer and more protected than the old paper record-keeping method.
5. Higher Return On Investment (ROI)
The ultimate reason for any business to build an app is to reap benefits. Mobile banking app development is no exception. Any bank that builds a mobile app wishes to receive benefits in return. The benefits can be in numerous forms, like more customers, higher engagement or return rate, better customer service, or more revenue.
6. Additional Revenue Streams
Building a banking mobile app can 2x your revenue. Want to know how? So when you only conduct operations through a physical bank, you only have one way to make revenue. This means you can only make revenue through people who will visit your bank.
Having a mobile app for banking purposes can help you to increase your income by 72%. According to a report, banks can gain more revenue when they develop a mobile app because mobile banking users spend more compared to clients who exclusively use branches or visit physically.
Benefits for Customers (Mobile App Users)
1. Account Access Round The Clock (24/7 Service)
Having a mobile app allows the account holder to access the bank at any time of the day from any part of the world. That means the user can see the current account balance, make a transaction, and perform many other activities without any time restriction. On the other hand, Traditional banking institution operates a few hours a day. Thus it’s impossible to make transactions during night hours.
2. Fast money transfer
Transferring money through a conventional bank can take hours to complete and sometimes even two days. Because the whole process takes time and goes through human intervention. In contrast, transferring money through a mobile app takes seconds. Here, you click a send button,n and money will be sent to the other person in just a second.
3. Fast and Secure Access To The Account (Biometric Method)
People who don’t use bank mobile apps consider security as the major reason. However, with the advancement, new and modern-day security measures are introduced, which makes the bank mobile app the most reliable path to make a transaction. Features like finger, voice, and face recognition make it impossible for strangers to log in to the app.
4. Broader Functionality
Nowadays, a banking mobile app can perform all the functions and activities a traditional banking institution performs. Therefore, elders or people with different disabilities who can’t come to the bank can do whatever they want with the banking mobile app.
5. Notifications Set up
In case of any emergency or alert, banks can notify their customers within seconds. The traditional way, like emails and letters, is time-consuming, which slows down the process. Often, people don’t read emails or letters, which can be problematic in the future – damaging the bank’s market reputation.
What are the Core Features Of Banking Mobile App Development?
Features are the most critical aspect of any mobile app development. Therefore, mobile application development companies must invest time and effort into researching the right set of features. A banking mobile app without essential features will be ineffective; customers will quickly lose interest if the app lacks functionality.
Here are eight core features that a banking mobile app should include:
1. User Profile
The first thing a user will do after downloading the app is to create an account or profile. The profile-creating process is a bit tricky and more complex than any other app as it is supposed to be. Here, the reason to create a profile isn’t just to give information to the application but also to keep all your transactions safe.
Different methods can be used to build a secure and quick authorization process
- Multi-factor authentication is one of the safest ways, but it can consume time as users have to fill in too much information.
- Biometric authentication is the right and most shielded avenue, where users have to use their finger or face to access the app. However, this feature is considered advanced, which can increase the development budget
- In case the user is already a bank customer only signing in with a mobile number or email with a password would also work. But remember this approach is not the safest.
- Debit card and 4-digit code. If the customer has a debit card he can use it to log in.
2. ATM/Bank Branch Locator
A banking mobile app can’t perform every task especially if the task needs human intervention. If this is the case, the mobile app should provide information about the nearest branch. So, the customer can visit the bank physically to solve the issue. Also, the app shows closes ATM to withdraw cash from the ATM.
3. Account Management
A mobile app should allow users to manage accounts. This is also the basic feature of a banking mobile app that enables account owners to check balances, view transaction history, seamlessly transfer funds between accounts, create investing plans, automate regular payments, and much more. To make sure that the user accesses all these functions easily, the app navigation should be intuitive.
4. 24/7 Support
Some people are not tech-friendly, so they may need assistance from the customer service team while using your banking app to resolve the issue. AI-powered chatbots are the feature that you’ll need to incorporate into the app. Alternatively, you can hire a full-time customer service team that will work 24/7, providing much better assistance than chatbots.
5. Money Transfers
A banking mobile app that doesn’t offer a fund transfer option is certainly of no use. The user will delete the app instantly if he finds out that the app doesn’t offer the money transfer feature. In the worst-case scenario, the frustrated user might close the bank account permanently and opt for another bank that offers a money transfer option. In addition, if you’re offering a money transfer option, make sure it is well-protected with advanced and modern-day safety techniques.
6. Push Notifications
Not just the banking mobile apps but every mobile app, regardless of the type, should have a push notification to keep their customers informed and updated. From a banking standpoint, push notification features keep the user up-to-date about various happenings like interest rates, increased credit limits, and many more.
7. Bill Payments
In this age of digitalization and technology, no one wants to pay bills while standing in a queue for hours under the harsh sun. In the US, the majority of people are already using mobile banking apps to pay bills. Whether it is a kid’s school fee or an electric bill, make sure that all types of bills can be paid through your banking application.
8. QR Code Scanner
Not many banking mobile apps offer a QR code scanner, but it’s one of the most demanded features that will soon be popular. QR code makes it possible to make payments in a safe environment.
What are the Banking App Development Challenges?
Banking mobile application development faces numerous challenges, relatively more than any other mobile application. Well, a banking mobile app may seem like any other app, but in reality, a person thinks a million times before making an account or logging in to a banking mobile app. The biggest fear people have about banking mobile apps is that they believe online platforms (like websites and mobile apps) aren’t the safest way to make a transaction or make any deal that includes money.
The second Overwhelming dread that users have is they think that if they lose or misplace their phone – someone will withdraw the money. The other major reasons are that users cannot see the screen, cannot do everything online, the app is too complicated, and other issues related to the app interface and layout.
With all these concerns and complications it can be nerve-wracking for mobile app developers to create an app that not just overcomes the fear of users but also motivates them to download the app and use it regularly.
Here are the 3 challenges that a mobile app developer should subdue fear.
1. Security Threat
According to a report, banking customers who don’t use mobile banking apps (42%) say it is because they don’t trust the security of these apps. The rest of the 62% of consumers now use banking apps regularly, but security concerns prevail. This means that a big majority of people don’t fear that they can lose their money due to cyber-attacks and other fraudulent activities.
How to solve the security issue?
The easiest way to increase people’s belief and boost their confidence is to provide them with multiple steps to log in to the app. In addition, you can also integrate advanced-level security measures like biometric authentication.
2. Don’t Store Unnecessary Information
A banking app database stores tons of irrelevant information, that if gets hacked can be a problem. We’ve seen multiple times before that cyber attackers hit the data that mobile app developers consider unimportant and useless – and when they get into the hands of hackers they use it for their benefit. So, if you think that certain data is Insignificant or Trivial don’t keep it in the app database for long.
3. Legal Regulations
Mobile banking app development is a risky and high-stakes development, which means that if anything goes wrong, a mistake can put down the whole development. That is why before launching a banking mobile app, it goes through a series of tests to make sure that it adheres to laws, standards, and regulations.
A Step-by-Step Guide to Mobile Banking App Development
In the present digitalized world, banking app development has become essential for financial institutions and consumers. If you are looking to explore the mobile banking app development process, here’s a step-by-step guide for you.
Stage #1: Research
Every mobile banking app development starts with comprehensive research. Conducting proper research not only helps you to find the answer to all your questions, but you also get to learn new things.
The research can be divided into three stages; 1. Competitor research 2. Market research 3. Target audience research.
1. Competitor research: By doing competitor research you get to know what unique aspects make them better than every other in the market whether it is with the features, interface, or the marketing strategy. You can also inspect their strength and weaknesses and use them accordingly.
2. Target Audience Research: Once you are done with the banking app development, it’ll be launched in the market. This means bank customers are the ultimate users of the app. But if you avoid them during the development stage, you’ll never be able to build an app that will be appreciated by them. Simply put, audience research helps you to know what kind of app you want, what features the app should have, and what the interface should look like.
3. Market Research: Market research helps you learn about the latest trends, technologies, and features that you can integrate into the app. Also, how much market demand is there for your application?
Stage#2: Strengthen the Security Base
This is the stage that we were talking about above. You won’t see security as a separate stage in any other mobile application development. But in banking mobile application development, you must spend days and weeks ensuring that the app adheres to modern-day security measures and techniques. That makes this process a time-consuming and effortful process and needs a specialized team who understands the security of the app in a better way.
Stage #3: Design UI/UX of the App
After performing a rigorous investigation, the first thing that mobile banking app developers do is they will start designing the interface and layout of the app. To create an engaging and attractive UI/UX of the app, you can see what the competitors have done with the app. You can take inspiration from such apps. Moreover, you can take feedback from the target audience about the prototype that you’ve created.
Well, most of you might think that UI/UX design might not be of such importance. After all banking mobile apps are all about online money so why not concentrate more on features and security rather than the app interface?
Well! That’s wrong!
The more engaging and intuitive your application will be, users will have peace of mind while using the app.
Step#4: Development
Once you’re done with the designing part, it’s time to start the development with the help of the technology stack. If you’re making a native app for Android users, you would need a Java and Kotlin developer. On the other hand, if you building an app for iOS users, you would need a Swift or Objective-c developer.
Also Read: App Builder Vs Coding: Which Is The Best Option For Your Business In 2025?
This step is considered the most technical part of the whole mobile banking app development journey.
Stage#5: Testing
Once the app is developed it goes through an exhaustive testing phase to ensure that the application is bug-free. Launching an application without having a bug or error can slow down the app’s performance. The testing of the banking mobile app should be done more carefully and thoroughly as the nature of a mobile app is very different as compared to other apps.
Stage#6: Launching
Once you are done with the development of mobile banking, it can be launched into the market, and users can download the app with peace of mind.
Cost Of Banking Mobile App
Determining the cost of mobile banking app development can be challenging, as it depends on various factors. Generally, the cost for developing a medium-level mobile banking app ranges from $30,000 to $60,000. However, costs can vary significantly based on the following factors:
- Developer Location: Rates can differ based on the geographic location of your development team.
- App Complexity: More features, functionalities, and screens increase development costs.
- UI/UX Design: High-quality design requires investment, affecting overall costs.
- Level of Customization: Tailored solutions typically come at a higher price point.
- Developer Experience: More experienced developers may charge higher rates, but their expertise can result in a better product.
Below you can see the cost of mobile banking app development in different countries.
Read More: Cost Of Mobile App Development – Cost Breakdown By App Types & Complexity
How Quanrio can help you build a top-notch banking mobile application?
If you’re reading this that means you’ve read the blog right till the end.
That thing also indicates that you really want to build a banking mobile app.
However, one question that will be on everyone’s mind is how to find the right banking app development company.
Searching for a skillful and competent mobile application development company is a tiresome process that can consume days.
If you want to save time you can always get in touch with the question
Over the years we’ve successfully built hundreds of mobile applications, websites, and other custom solutions.
If you’ve any groundbreaking idea in your mind and want to bring it to reality.
You’re welcome to speak to our developers.
FAQs
What is mobile banking app development?
Mobile banking app development involves creating applications for banks and other financial institutions. It allows users to perform various transactions and banking activities on their mobile devices.
How can I find reliable banking app developers?
To find reliable banking app developers, you must look at their experience and team with a proven track record in mobile banking development.
What are the key features of a mobile banking app like Chime?
A mobile banking app like Chime typically includes features such as account management, mobile deposits, bill payments, peer-to-peer transfers, and real-time notifications for transactions.
What are the benefits of banking app development in the USA?
Banking app development in the USA offers several advantages, such as access to a highly skilled talent pool, adherence to strict regulatory standards, and proximity to leading technology and financial institutions.
What are the challenges in mobile banking app development?
Challenges in mobile banking app development include ensuring robust security measures, compliance with regulatory requirements, optimizing user experience, and addressing compatibility issues across various devices and operating systems.
What will the future of mobile app development be like in 2025?
The future of mobile app development in 2025 will be driven by AI, 5G, and cross-platform development. Super apps, blockchain security, and IoT integrations will enhance user experiences. Low-code/no-code platforms will simplify app creation, making development faster and more accessible. The focus will be on speed, security, and smarter, more connected applications.
What Are The 3 Most Successful Banking Apps in the US?
Chime, Bank of America mobile app, and Capital One are the most successful banks in the US in terms of downloads, popularity, and revenue generated.
Can Anyone Make a Banking Mobile App?
If you know major programming languages still you can’t make a banking mobile app on your own. You’ll need a team full of developers and designers to make a banking app. However, if you’re Technology-averse you’ll need to hire a full-scale mobile application development team to develop online banking applications.
How Long Does It Takes To Build A Mobile Banking App?
The estimated time to make a mobile banking app depends on the complexity of the app. For instance, if you want to develop a complex mobile app with cutting-edge features it can take up to 6 months. On the other hand, a simple banking app can be created in less than 3 months.
Is Mobile Banking App More Secure Than Online Banking?
Mobile banking app is the part of online banking that can never be compared in any way. If we compare mobile banking apps with the bank website, we can say that banking applications are more secure as they are integrated with comparatively more strong security measures.
Why Do People Use Mobile Banking Apps?
The biggest reason why people use mobile banking apps as they are a more convenient, quick, and secure way to make a transaction. The Walk-in banks take hours to complete a transaction, through a mobile app it can be done in a split second.
