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  • Banking App Development - 7 Crucial Steps for Successful Development

    Banking App Development – 7 Crucial Steps for Successful Development

    Internet banking was first offered by an American bank Wells Fargo on May 18, 1995. 25 years later, over 1.9 billion people across the globe are using online banking services, and the number is expected to reach 2.5 billion by 2024. It seems that mobile banking app development is a worthy investment and a necessity for the fintech industry today. If you’re curious to know what the process of building mobile apps involves, here’s an article that will guide you through the 7 important stages of mobile banking app development.

    Step-by-Step Process for Mobile Banking App Development

    Step-by-Step Process for Mobile Banking App Development

    The process of mobile banking application development is similar to the development of any other app. However, you need to focus more on the security stage as banking apps deal with sensitive and confidential data and online transactions. Here are 7 steps of how to build an online banking application from scratch.

    So, let’s begin!

    Step 1 – Research

    First of all, start with a comprehensive market analysis. Study your competitors and your niche market conditions. When building mobile banking apps, you must focus on the cultural aspects, user habits, and mentality. For example, if you’re building an online banking app for the US market, you may find that around 70% of Americans have at least one credit card. So, make sure your app has a credit card option to facilitate online transactions. You must always keep in mind the cultural aspect of the market you want to target.

    The results of the research step are as follows:

    • User Persona profile
    • Market habits
    • Market analysis
    • Market share
    • Value proposition

    Step 2 – Plan and Prepare Security Features

    This is the most essential step of mobile banking app development. As said earlier, online banking applications store sensitive user data. Therefore, here are some important security features to consider when building a banking app.

    • Secure Password Make sure all user passwords are hashed and then stored in the database.
    • Data Privacy Mobile banking app developers should have limited access to users’ tokens, passwords, and other sensitive data. Store all data in secure platforms such as Okta, 1Password, etc.
    • Security Certificates While an SSL Certificate is essential for a web app, SSL Pinning is important for mobile apps. These certificates ensure that all data transmitted between the web server and browser remains secure and private.
    • Auto Logout Users will be automatically logged out of the app (both on the front-end and back-end) if they are not active for more than 15 minutes.
    • Secure Authentication Integrate fingerprint security for Android devices and Apple KeyChain for iOS.
    • Secure Card Info Incorporate Very Good Security (VGS) to display customers’ card details.

    Step 3 – Build and Test a Prototype

    A product’s success depends on the number of interactions. Creating a prototype for the app is one of them.

    A prototype is a basic, simplified version of the application. It should include:

    • App structure
    • App logic
    • App design

    However, the app prototype demonstrates functionality, stability, and aesthetics. It helps you to validate your app idea. You test your app with your target users, obtain feedback, understand what’s working and what’s not, and then make adjustments.

    So, if you want to validate your app’s usability, functionality, and design, you should build a prototype first.

    Step 4 – Design Your App’s UI/UX

    Based on the information gathered during the project and market research stage, and the feedback obtained for the prototype, designers take the process ahead.

    A user-friendly UI design is a significant advantage of mobile banking apps. Therefore, you must focus on creating a simple, easy-to-use, and intuitive app interface. Make sure you hire professional mobile app UI/UX designers to get the job done.

    Step 5 – Develop Your Mobile App

    Before commencing the mobile banking app development process, you must select a suitable development framework.

    So, if you’re planning to build an online banking application on iOS or Android, it’s wise to go with Native app development services. The reason is simple; it is safer than the React Native app development approach.

    For iOS app development, here’s the main tech stack you’ll need:

    • Swift
    • iOS SDK
    • XCode

    If you’re opting for Android app development, then here are the main tools you’ll need to create a banking app.

    • Java or Kotlin
    • Android SDK
    • Android Studio

    Step 6 – Integrate the App with Third Parties

    The next step is to integrate your app with third-party services and solutions. Third-party integration can make your app more enhanced, create a more user-friendly app and engage customers on the app.

    Here is a list of renowned third-party services providers in mobile banking application development:

    • Segment –A powerful customer data analytical tool
    • Iterable –In-app notifications configuration
    • Onfido – A handy tool for user verification
    • Plaid –A tool used to link users’ financial accounts to the application
    • Sendbird –In-app messaging system

    When selecting a third-party integration service, you must always check if the solution is secure, stable, and actively supported by the provider.

    Step 7 – Launch, Maintain and Enhance

    Once your app is secured, designed with intuitive user flow, and integrated with standard third-party services, your app is ready for launch. But, this is not the end of the story.

    When your product is finally launched in the market, a new journey begins. Your target users start interacting with your app, new requirements and changes crop up, and you wish to implement new features on your app. So, be prepared because your initial mobile banking app is likely to change in the future. Sometimes, you may also need drastic changes.

    The best that you can do is to approach a reputed mobile app development company to avail yourself of its ongoing mobile app support and maintenance services.

    Challenges You May Face During Mobile Banking App Development

    Challenges You May Face During Mobile Banking App Development

    Below are some common challenges in mobile banking application development you should know:

    • Biometric Authentication

    Undeniably, mobile banking apps handle highly sensitive user data. Therefore, biometric authentication is a must-have feature of these apps. However, when setting up Face and Touch ID authentication, you may encounter issues with Android devices, which you need to solve.

    Therefore, since you’re working with sensitive users’ data, make sure you take your time or hire experts for proper implementation.

    • KYC Verification

    Know Your Customer or KYC verification is another hurdle in the online banking app development process. KYC is the process of verifying the true identity of bank customers, either before or when the user starts using your banking app.

    So, what’s the challenger here? It’s that there are only a few good Risk Analysts. So, you’ll have to spend more time looking for the right one. Also, there is a helpful integration is alloy.com that can help you with seamless KYC procedures.

    • Third-party Integrations

    Third-party integration may not seem to be a time-consuming process, however, executing the same could be a pain. Generally, signing contracts with third-party service providers could take a lot of time. Moreover, it may also affect the project roadmap and delay delivery.

    Mobile app developers will have to work with mocked data until the third-party integration is done. Sometimes, it may take an additional one to two sprints to close the feature.

    Therefore, it is wise to plan things beforehand and set aside ample time for third-party integration.

    • Rapidly Changing Needs

    Mobile banking app development demands a lot of patience and flexibility. Especially, if you’re targeting the US market where the fintech industry is rapidly growing, you need to incorporate new and ever-changing needs and business logic.

    So, get ready for this challenge too!

    • Compliance with Legal Regulations

    Lastly, you need to face challenges related to legal regulations. For mobile banking application development, you must cover the following standards:

    • Generally, it is the PCI DSS that maintains and promotes Payment Card Industry standards for cardholder data security and safety globally.
    • In the US, it is the CCPA. The main intent of the California Consumer Privacy Act is to improve privacy rights and consumer protection for people living in California, USA.

    If you are entering the European market, here are the regulations you need to follow:

    • GDPR or the General Data Protection Regulation formulates the rules for protecting personal information in the EU.
    • PSD2 or the New Payment Services Directive encourages the development of more innovative and secure online payments through mobile and better consumer protection in the EU and EEA.

    Conclusion

    Mobile banking application development is indeed a great initiative to meet users’ needs. People no longer need to stand and wait in long queues in banks as they can instantly access all the services and information through mobile apps.

    However, unlike other applications, mobile banking apps demand your focused attention on data privacy and security. Therefore, security is the most important stage of the mobile banking app development process. Also, keep in mind that it affects your app features as well as creates new challenges for you.

    If you’re having a mobile banking app idea or concerns related to the development process, do not hesitate to contact our mobile app experts. We, as a trusted mobile app development company in India, are just a click away!

    FAQs

    Q.1. What advanced features can I add to a full-fledged banking app?

    Ans. A full-fledged banking app solution may include features like:

    • Recurring payments
    • QR code scanner
    • Gamification and rewards
    • Customer loyalty program from third parties;
    • Nearby ATM and bank branch locations, if possible.

    Q.2. What mobile banking app features do you integrate for the MVP?

    Ans. For an MVP, here’s a list of mobile banking app features we add:

    • User profile
    • Check account balance
    • Fund Transfer
    • Transactions history
    • Dashboard for displaying expenses
    • Data encryption
    • 24/7 round-the-clock support
    • Touch and Face ID set up
    • Push notifications
    • Integration with Wallet app
    • Cashback
    • New card request, physical or virtual

    Do You Have More Questions? Feel Free to Ask Our Experts Right Away!

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