In the present fast-evolving landscape of modern finance digital transactions have become normal.
Building a banking app has emerged as a crucial attempt for banks seeking to revolutionize the financial industry.
The digital revolution has greatly transformed the way people manage their finances but has also presented an opportunity for innovative tech-driven solutions.
Building a banking app has the potential to transform traditional banking.
In this article, we will delve into the top-secret tips that can guide you on your journey to creating a banking app that not only grabs the attention of users but also ensures a secure and seamless financial experience.
So, if you want to embark on this exciting journey, let’s begin to explore the essential secret tips that will set you on your path to success.
Banking App Magic: The Secrets No One Tells You About
Remember that building a banking app is quite challenging
Why? Because the major underlying concern is the security of customers. There are multiple concerns related to privacy and safety.
Remember financial industry regulations and know your customers’ standards so a developer must take this issue into account and look for possible solutions.
To increase security, you can follow some proven tips that can mitigate the risks and vulnerabilities.
1. KYC Compliance
KYC (know your customers) or (know your client).
It is simply a process to verify customers for whom they claim themselves to be and that they are not possibly involved in any organized crime.
Also, assessing and monitoring the risks.
Such KYC procedures may help you to limit fraud and prevent and identify money laundering, terrorism financing, and other corruption schemes via proof of identity (POI) and proof of address (POA).
Some commonly accepted POI examples include a passport, national ID card, SIN/SSN/Driving license, Photo ID, military ID, student ID, or Arms license.
POA documents must contain name, and current address moreover as a rule, the individual has to submit a few documents like utility bills, bank statements, current residence letter as proof, house purchase deed, lease agreement, election commission ID card, and employer’s certificate.
2. Strong Passwords
One more important tip that you need to remember while building a banking app is to ask your users to create a strong password which must contain unique characters.
Also, asking them to change their password after a certain time is a good strategy.
3. Do Not Save Unessential Information
Building a banking app and keeping unessential business data is very risky in terms of cybersecurity.
The potential dangers of data security exposure increase when an excess amount of information is kept without any valid reason or business cause.
However, monitoring IP addresses, geolocation, in-app activities, activity logs, and device data is a completely different matter.
4. Two-Factor Authentication
Do not forget to incorporate two-factor authentication while building a banking app as it is the way to verify that your users are those who they claim to be.
It can increase mobile banking security as two-factor authentication (T-FA or 2 FA) combines passwords, pins, biometrics, mobile signatures, or smart tokens.
5. Payment Blocking
Including payment-blocking options while building a banking app can help users address fraud.
By setting blocking they can limit the use of payment cards to doubtful channels or specific situations.
Also, enable two-factor authentication to unblock these transactions.
To launch FinTech software development, you must comply with the laws, standards, and regulations.
Let’s have a look at some of them
GDPR: The General Data Protection Regulation (GDPR) presents the rules for protecting personal data in the EU.
PSD2: The new payment services directive (PSD2) contributes to the development of innovative online and mobile payments, more secure payments, and better consumer protection across the EU and EEA.
PCI DSS: PCI DSS (Payment Card Industry Data Security Standard) maintains, develops, and encourages the Payment Card Industry standards for cardholder data safety across the world.
CCPA: The California Consumer Privacy Act (CCPA) is designed to enhance privacy rights and consumer protection for the residents of California.
Mobile Banking Apps Development Trends in 2023
Now when your app is ready to do miracles in the market, there are certain trends that you must consider for building a banking app.
No matter how powerful an application you build, it always requires new market upgrades and updates.
If you want to stand apart from the crowd, you can incorporate a few features or solutions that are discussed below.
You do not necessarily need to include them from the start as it can increase your budget.
But after getting recognition and a good customer base you can reward your customers by providing trending technical solutions.
It might help you in enhancing your customer experience.
1. Artificial Intelligence
In today’s digital world, providing personalized experiences has become necessary. According to the investigations by McKinsey&Company personalization can cause your revenue to jump by 15%.
AI-powered chatbots, smart advisors, and virtual assistants can help you analyze your customers’ experience by gathering their data from emails, messages, payment history, etc.
Its use can entirely change the view people look at mobile banking.
The use of game mechanics and psychology to impact users is called gamification.
This trend will also become popular so you can add this feature while building a banking app.
You can simply add a leaderboard and other game elements, for instance, awards, badges, and challenges. It will in turn engage customers with the app as well as your brand.
It will not just increase customer engagement but also impact retention rates and your customers might also recommend you to their peers.
3. Voice Interfaces
Voice Assistance is becoming common and is here to stay.
It’s 2023, so you must know that virtual assistants are becoming a norm to offer customer engagement and support through voice interface.
Also, without this feature, your app might look outdated.
The future voice assistant won’t just listen to the orders but will also be able to understand the context and provide replies, and with the use of machine learning it will better understand what customers are asking for.
4- Biometric Authentication
Password protection is the most common way nowadays to keep banking apps safe and secure. However, this method has its flaws as people often use weak passwords.
Given that, biometric authentication like face recognition and fingerprint recognition is much stronger and safer than passwords.
Furthermore, they are easy to use and users do not have to remember the complex codes or phrases.
5. Mobile Wallet
Various mobile wallet services are already here such as Apple Wallet, Android Pay, and Samsung Pay.
Although these mobile wallet services are just in their infancy stage.
In a few years, they will most probably become so popular that using cash and cards will become outdated.
Banks are considering this and trying to develop their mobile wallet services. After some years people will use mobile phones as their ATM cards, credit cards, and a few kinds of electronic wallets.
Today, using smartphones as an ATM or to pay for things has become as common as using your laptop to pay online.
6. 5G Networks
You can also include 5G technology while building a banking app as it has now revolutionized banking app development, it offers high data speed, increased network capacity, and lower latency. It makes it easier for developers to create complex and engaging apps.
Due to 5G’s high speed and low latency, app developers can make more innovative, interactive, and data-insensitive applications that can revive industries and provide better user experiences.
6. Blockchain Technology
This technology facilitates the creation of decentralized and distributed ledgers that empower autonomous entities to conduct financial transactions without the need for intermediaries to intervene.
It sets the path for mobile banking to transfer to a cloud-based system, getting rid of physical branches. It also simplifies things with digital banks and encourages the use of blockchain technology.
Blockchain technology is just like a modern banking trend that makes it easy for users to sign up, provides real-time updates, and lets people access their accounts 24/7. Also, using digital-only banks can give you rewards and cashback.
This means that the process of building a banking app will improve with these advanced trends in the future.
7. Peer-to-Peer Landing
Peer-to-peer (P2P) is also becoming a banking app trend that makes it way easier for people to lend or borrow money from their peers such as friends or relatives without banking formalities.
So, you can provide P2P lending solutions to your users via your banking app and can connect borrowers and investors directly.
Moreover, the popularity of peer-to-peer is increasing, and it decreases the need for traditional banks.
In 2023 and beyond, we can expect to witness more of these payment apps with some extra favorable features for people who use mobile banking.
8. CardLess ATM Withdrawals
Cardless ATM withdrawals are a demanding and ever-evolving trend in the banking and fintech market.
Even though, many banks have already introduced cardless withdrawal.
It limits the usage of debit cards for ATM withdrawals and allows users to withdraw by using your banking application.
9. Open Banking
Open banking is also one of the most trending features in 2023 as it provides significant banking solutions.
It makes the banking features more convenient and accessible.
This feature empowers users to securely share their financial data with third-party service providers, financial institutions, and banks.
Thus, the banks use this data accordingly to offer customized services based on consumers’ behavior.
Consumers are also conveniently using third-party APIs to access financial details and transactions as it reduces complications for them.
So, open banking simplifies banking and delivers higher customer satisfaction that can be gained.
10. Big Data
Big Data is also going to revamp the banking app trends. It is the latest technology that rapidly allows the collection and processing of larger volumes of user data.
It is a huge range of solutions that targets sales and optimizing overall user experience.
People have a misconception about data loss risk although this is not the case as it is developed to secure personal user information against violation.
It monitors and tracks users’ activities on your app and also keeps an eye on suspicious transactions from the account.
It helps banks to collect users’ data so banks can detect fraud and take necessary actions against it. So, it has a larger impact on digital banking trends to secure customers’ data.
Lastly, if you want to build a banking app then Quanrio is a devoted Banking app development company that can offer you a clearly defined app development plan and can create a banking app incorporated with the latest tech stack and features according to your requirements.
Contact us for further details.
1. What is The Future of Mobile Banking?
The future of mobile banking looks promising, with continued advancements in user-friendly interfaces, enhanced security measures like biometrics and blockchain integration, and the rise of digital-only banks. Mobile banking will likely become even more integrated into everyday life, offering a seamless and convenient way for people to manage their finances on the go.
2. What is The Difference Between Fintech and Banking?
The term “fintech,” which stands for “financial technology,” refers to a broad spectrum of innovative services and goods that have the potential to transform and alter the conventional financial sector. It consists of peer-to-peer lending platforms, robo-advisors, payment apps, and more. On the other side, the term “banking” describes the conventional financial organizations that offer services like savings accounts, loans, and investment management. Fintech is the broad digital transformation of financial services, though banks can integrate it into their operations.
3. What Are The Key Security Considerations When Building a Banking App?
Security is the key. Implement robust encryption, multi-factor authentication, and regular security audits to protect sensitive financial data.
4. How Can We Ensure Regulatory Compliance For a Banking App?
Comply with financial regulations like KYC/AML, GDPR, and others. Consider partnering with regulatory technology (RegTech) providers to streamline compliance.
5. What’s The Best Approach For User Experience (UX) in a Banking App?
Prioritize intuitive navigation, responsive design, and real-time updates for a seamless user experience. User testing and feedback loops are essential for refining the app’s UX.