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February 15, 2023

How to Build a Mobile Banking App in 2023: Everything You Need to Know

With this article, you will learn about the key features and functionalities that are essential for a successful mobile banking app in 2023.

Alex Drozdov

Software Implementation Consultant

According to a Deloitte survey of 17,100 consumers across 17 countries about their digital banking behaviors and channel usage, 59% of respondents use mobile banking apps at least once a month. According to a report by Vantage Market Research, the global digital banking apps market is projected to grow at a CAGR value of 11.9% from 2021 to 2028

These apps have revolutionized the way people manage their finances, making it more convenient and accessible than ever before. With the help of mobile banking apps, people can now perform financial transactions and access their banking information anytime and anywhere, all from the convenience of their smartphones.

Mobile Banking Market Size
Source: Vantage Market Research

Mobile banking market overview 

The market for mobile banking apps has experienced significant growth in recent years. With the increasing adoption of smartphones and the convenience they provide, more and more people are using their mobile devices to manage their finances. Actually, Google reports that 6 in 10 smartphone users prefer using a finance app over a mobile site.

Mobile Banking App Users
Source: Google

One of the main drivers for the growth of the mobile banking market is the increasing number of smartphone users. The widespread use of smartphones has made it easier for people to access their banking information and perform transactions on the go. Additionally, with the implementation of advanced technologies such as artificial intelligence and biometrics, mobile banking apps are becoming more user-friendly and secure. 

How many smartphone users are there

Another significant driver of the mobile banking market is the growing number of financial institutions that are offering mobile banking services. Banks, credit unions, and other financial institutions are investing in mobile banking to attract and retain customers, as well as to improve operational efficiency. Many financial institutions now offer mobile banking apps that allow customers to check account balances, transfer funds, pay bills, deposit checks, and even apply for loans using their mobile devices.

Why Use Mobile Banking App

Many Asian countries have also adopted this trend, with cities such as New Delhi, Tokyo, and Hong Kong experiencing growth in their middle class populations, giving increased access to high-end smartphones and leading to greater digital connectivity among their citizens. According to Statista, the trend of using online and mobile banking applications is expected to grow consistently from 2021 to 2024, with the Asian market leading the way. In 2020, East Asia and China alone had over 805 million active online banking users. This number is projected to reach almost one billion by 2024. Even though Asia was the biggest market for online banking in 2020, the countries with the highest adoption rate were located in Europe. South Korea placed sixth with a 74% adoption rate.

Active users geo
Source: Statista

Top mobile banking apps

The Bank of America app is offered by Bank of America, one of the largest commercial banks in the United States. The app allows customers to manage their bank accounts and perform financial transactions using their mobile devices.

  • AppStore rating: 4.8/5 

  • GooglePlay rating: 4.7/5 

  • Cost: $0

Bank of America
Source: Bank of America

The Alliant Credit Union app is a mobile banking app offered by Alliant Credit Union, which is a non-profit credit union in the United States. The app enables individuals to take control of their credit union accounts and conduct financial transactions through the use of their mobile devices.

  • AppStore rating: 4.7/5 stars

  • GooglePlay rating: 4.1/5 stars

  • Cost: $0

Alliant Credit Union app
Source: The Alliant Credit Union app

The Capital One app is a mobile banking app offered by Capital One, which is a major consumer and commercial bank in the United States. The app allows customers to manage their bank accounts and perform financial transactions using their mobile devices.

  • AppStore rating: 4.9/5 stars

  • GooglePlay rating: 4.6/5 stars

  • Cost: $0

Capital One
Source: Capital One

The U.S. Bank app is a mobile banking app offered by U.S. Bank, one of the largest commercial banks in the United States. The application for mobile banking enables users to handle their banking accounts and conduct financial operations through their smartphones.

  • iOS app rating: 4.8/5 stars

  • GooglePlay rating: 4.7/5 stars

  • Cost: $0

U.S. Bank
Source: U.S. Bank

The Wells Fargo app is a mobile banking app offered by Wells Fargo, one of the largest commercial banks in the United States. The application provides customers with the ability to control and handle their bank accounts, as well as complete financial transactions utilizing their mobile devices.

  • AppStore rating: 4.8/5 stars

  • GooglePlay rating: 4.7/5 stars

  • Cost: $0

Benefits of banking apps

They have revolutionized the way we manage our finances, making it easier and more convenient to access banking services on the go. With a banking app, individuals and businesses can quickly view their account balances, transaction history, and account details without having to visit a physical branch or log in to a desktop website. Let’s explore the various advantages of mobile banking apps for both users and businesses.

For users

  1. 24/7 access: With a banking app, users can access their account information and perform various transactions, such as transferring money or paying bills, from their phone or tablet at any time and from anywhere. This is especially useful for people who are always on the go or who do not live near a physical bank branch.

  2. Security: Banking apps often use advanced security measures such as two-factor authentication, encryption, Touch ID, and Face ID to protect users' financial information and prevent fraud.

  3. Real-time notifications: Many banking apps send real-time notifications for transactions, such as when a payment is made or when an account balance falls below a certain threshold. This can help users keep track of their finances and alert them to any potential issues.

  4. Access to transaction history: This feature allows users to view a record of all their past banking transactions, including deposits, withdrawals, and bill payments. It can help users spot any suspicious or fraudulent activity and simplify tax preparation. 

  5. Rewards: Some banking apps offer rewards or cashback for using certain features or making certain transactions.

  6. Easy account management: With a banking app, users can easily view their account balances, transaction history, and account details without having to visit a physical branch or log in to a desktop website.

For business

  1. Increased efficiency: With a banking app, businesses can easily access their financial information and perform various transactions from their phone or tablet such as paying bills or transferring money. This can save time and increase efficiency by eliminating the need to visit a physical bank branch or log in to a desktop website.

  2. Enhanced security: These often use advanced security measures, such as two-factor authentication and encryption, to protect businesses' financial information and prevent fraud.

  3. Enhanced customer service: Clients can use banking services from anywhere in the world, including making payments, getting customer support at any time, checking their balance, and more, which leads to an improved customer experience and increased customer loyalty.

  4. Reduced operating expenses: Moving some or all of bank operations online can significantly decrease operating costs, as it eliminates the need to open physical branches in every city where there are clients. 

  5. Easy account management: Businesses can use them to view account balances, transaction history, and other account details without going to a physical bank branch or needing to access a desktop website.

Banking apps trends overview

The mobile banking industry is constantly evolving and incorporates a wide range of advanced technologies to meet the needs of users. Now we’ll observe 5 key trends adopted by major industry players. 

AI and Machine learning

Both of these technologies are affecting change in all tech industries, but especially FinTech and online banking. 

Using Artificial Intelligence (AI), banks can better understand their clients' needs, address issues to improve user engagement, and increase revenue by collecting and analyzing data such as transaction history, inquiry history, and customer reviews. 

AI in banking

Machine learning algorithms can be used to create profiles of individual customers, calculate their lifetime value, and determine their satisfaction and retention rates, allowing the organization to tailor its services to better meet the needs of its clients.

Also, we can’t leave out the integration of AI-powered chatbots that are able to perform a variety of tasks. These include answering FAQs, providing information about bank products and services, helping users manage their accounts and make transactions, providing personalized recommendations and financial advice based on a user's history and behaviors, assisting with fraud detection by alerting users to suspicious activity on their accounts, and handling customer service inquiries and resolve issues in real-time.

If you’re new to the subject of chatbots, please watch our YouTube video that covers the basics. 

Big Data

Big Data refers to the use of advanced technologies to collect and process large amounts of personal user information. It is widely used in a variety of fields, such as marketing, sales, and improving the user experience, and is similar to AI and ML in terms of its widespread adoption and influence.

Big Data also helps users with their security in crime prevention. BigData algorithms are able to monitor a user's activities and detect any unusual behavior. 

Big data illustration

Cardless ATM withdrawal

Cardless ATM withdrawal is expected to be one of the major trends in the mobile banking industry in the coming years. This technology allows customers to access ATMs using NFC technology or QR code scanning, making the process more convenient.

This improves the user experience by allowing customers to access their funds and make payments by simply scanning their smartphone screens. In addition to this convenience, it can also help reduce the risk of cloned card fraud.


Gamification, when implemented correctly, can enhance the user experience by making it more engaging and seamless. It can turn tasks like taking out a loan or making a deposit into an enjoyable experience. Here are a few examples of gamification elements that banking apps can implement:

  1. Reward points: Some apps award points to users for completing certain tasks, such as making a certain number of transactions or referring friends to the app. These points can then be redeemed for rewards like discounts, merchandise, or special access to features.

  2. Progress bars: Banks can use progress bars to show users how close they are to achieving a particular goal, such as saving a certain amount of money or paying off a loan. This can help users stay motivated and engaged with the product.

  3. Badges and achievements: Apps can award badges or achievements to users who accomplish certain milestones or achieve specific goals. This can give users a sense of accomplishment and encourage them to continue using the app.

Gamification in banking

Voice payment 

Voice payments can be particularly useful for users who are on the go and don't want to take the time to enter payment information manually. They can also be an accessibility feature for users with disabilities that make it difficult to use traditional input methods. Users would be able to initiate a payment by speaking a command to their device, such as "Pay my electric bill." or "Transfer money to…" 

The adoption of voice-based payments by financial institutions and retailers is expected to increase as they seek to easily access personal data and understand customer behavior. This trend is expected to contribute to the growth of the market for voice payments. The global voice-based payments market size was valued at $5.89 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 10.9% from 2022 to 2030. 

Voice-based payments market

Must-have mobile banking features

Authentication and authorization

Authentication refers to the process of verifying that a user is who they claim to be, typically by requiring the user to enter a username and password or to use a biometric method such as facial recognition or fingerprint scanning. This helps to ensure that only authorized users can access the application and the user's financial accounts.

Account management 

This feature typically includes the ability to view account balances, transaction history, and account details, as well as the ability to make payments, transfer funds, and set up alerts and notifications. It can help users stay organized and on top of their finances, and can be particularly useful for those who have multiple accounts or who need to manage their finances on the go.

Account management

Quick transactions 

Quick transactions are designed to make it easy for users to access their accounts and make payments or transfers on the go and can be particularly useful for those who need to make frequent or time-sensitive transactions.

Quick transactions may be available for a variety of financial activities, such as paying bills, transferring funds between accounts, or making purchases. The specific types of transactions that are available will depend on the mobile banking app and the user's financial institution.

Customer support

This feature is typically accessed through a "help" or "support" section of the app and may include a variety of resources such as frequently asked questions (FAQs), user guides, and contact information for customer support staff.

Some mobile banking apps may also offer additional customer support options, such as live chat or in-app messaging, which allow users to communicate directly with customer support staff and receive assistance in real-time. 

Customer support may also be integrated into the form of AI-powered chatbots that are able to interact like humans. 

Customer support in banking apps

Push notifications

Push notifications allow you to send alerts or notifications to a user's device even when the app is not in use. These notifications can provide the user with important information, such as when a payment has been made or received, when a balance has changed, or when there is a security issue with their account.

Advanced features

Cardless ATM access

Cardless ATM access is an advanced feature for mobile banking apps that allows users to access their funds from ATMs without the need for a physical debit or credit card. This can be convenient for users who have left their card at home, who have lost their card, or who simply prefer not to carry a card with them.

Cardless ATM access illustration


Bill-splitting is a feature in mobile banking apps that allows users to easily split and pay a bill with other people, such as when dining out with friends or paying rent with roommates. The app will then calculate each person's share of the bill and allow users to pay their share directly through the app. Some apps may also allow users to send a request for payment to other users, or to set up recurring payments for bills that are paid on a regular basis.


Who doesn’t like earning cash rewards or discounts when they make purchases? Everybody does. There are a few different ways that cashback can be offered through a mobile banking app. Some of them may offer a set percentage of cashback on all purchases, while others may offer different rates for different types of purchases or at specific merchants. Others may also offer cashback bonuses for meeting certain spending thresholds or for using certain features of the app.

Integration with wearable devices 

Wearable devices are typically small and portable, making it easy for users to access their banking information and perform transactions while on the go. 

Integration with wearable devices illustration

How to choose the tech stack?

When it comes to developing a mobile banking app, there are a number of different methods to choose from, each with its own advantages and disadvantages. However, there are two main approaches that are typically considered in this context: native development and cross-platform development.


Native development is a process where an application is specifically designed to work with a particular operating system, such as Android or iOS. These apps are built for a specific platform and are only compatible with the operating system for which they were developed. They are delivered to the device's memory in the form of system-specific packages and work seamlessly on the platform they were built for.

Creating a native app requires a deep understanding of the particular framework and coding conventions of the specific platform. If a developer wants to create a single product that works on both iOS and Android, they will have to develop separate apps that have a similar design and functionality but require different backend work.

As an example, iOS apps are typically developed using Objective-C or Swift. On the other hand, Android apps are frequently created using programming languages like Java or Kotlin. The native approach is frequently employed in situations where the future product is complex, demands high performance and security, and has a strong emphasis on overall quality.

The final tech stack will depend on a variety of factors, such as the feature list, design complexity, and so on. However, we can mention some of the most popular tools and frameworks used in mobile banking app projects. 

Programming languagesSwift 5, Objective-CKotlin, Java
IDEXcode 14.2, AppCodeAndroid Studio (latest version)
Platform SDKiOS SDK, Cocoa TouchAndroid SDK (latest stable version)
Push notificationsUserNotifications FrameworkFirebase Cloud Messages
DatabasesPostgreSQL, MySQLPostgreSQL, MySQL
Web serverNginx, ApacheNginx, Apache
Cloud storageAmazon services (S3, EC2, etc.), Heroku, RackspaceAmazon services (S3, EC2, etc.), Heroku, Rackspace
Location servicesGoogle MapsGoogle Maps
AnalyticsHotjar, Optimizely, Google Analytics, Microsoft Clarity, MatomoHotjar, Optimizely, Google Analytics, Microsoft Clarity, Matomo


Cross-platform development is sometimes mistaken for hybrid development. While both methods have the advantage of allowing for code reuse, that is where their resemblance ends. Hybrid apps are developed using web technologies such as HTML5, CSS, and JavaScript, whereas cross-platform apps use a unified codebase to work seamlessly on both Android and iOS. These types of apps often provide a user experience that is quite similar to that of native apps because they utilize the native rendering engine of the platform they're running on.

React Native and Flutter (developed by Facebook and Google respectively) are two popular frameworks commonly used in cross-platform development. React Native is based on JavaScript, and Flutter is based on the Dart programming language.

How to create a banking app in 6 steps

It can be a difficult and time-consuming process, but with the right planning and execution, it can become a straightforward process. In this article, we will go through the step-by-step process of creating a mobile banking app, including the initial planning stages, the design and development process, and the final testing and release stages.

1. Start with a research 

Conducting research before developing a mobile banking app is important for several reasons:

  • Understanding the target market: Research can help you understand the needs and preferences of your target customers, and tailor the product's features and user experience to meet their needs. This can increase the chances of the app being successful and well-received by customers.

  • Identifying existing competition: Conducting market research can help identify existing competition in the mobile banking space. By understanding what other solutions are available, what features they offer, and how they are being received by customers, you can identify areas where you can differentiate your app and offer something unique.

  • Identifying the right features set: By researching the user behavior, pain points, needs, and opportunities you can identify the right set of features to implement in your product and increase user retention, satisfaction and eventually generate revenue for the company.

2. Approach the right software development partner

A good vendor will have the expertise, experience, and resources to deliver a high-quality product on time and within budget. Having an experienced vendor who follows best practices and implements security protocols guarantees the safety and security of the users' information, which is crucial in a mobile banking app.

To understand whether the software development vendor is the right choice, check their portfolio and reviews of their clients. Now let’s talk about the approximate team composition required to build the app. 

The team composition for mobile banking app development will depend on the size and scope of the project. However, there are a few key roles that are typically included in the development team:

  1. Project manager

  2. Business analyst

  3. UX/UI designers

  4. Frontend engineers

  5. Backend engineers

  6. QA engineers

3. Create prototype 

A prototype is a working model of the app that allows developers to test and evaluate its functionality and usability. It serves as a visual representation of the final product, giving stakeholders an idea of what the future product will look like and how it will work.

There are different ways to create a prototype for a mobile banking app, but one common approach is to use wireframe and prototyping tools. Wireframe tools allow developers to create a basic layout of the app's interface, including the placement of buttons, text, and other elements. Prototyping tools, on the other hand, allow developers to add interactivity to the wireframe, simulating how it will work when it is finished.

Mobile banking app wireframes
Mobile banking app wireframes

4. Develop your future product 

Once you contact a software development vendor and the prototype has been reviewed, revised, and approved by the stakeholders, the development team can begin building the actual mobile application with the selected tech stack. 

5. Test it 

Testing is a critical part of mobile banking app development, as it helps ensure it is functioning correctly and meets the needs of users. It also helps identify and fix any issues or bugs in the app before it is released to the public.

There are several different types of testing that are commonly used in mobile banking app development, including: Unit Testing, Functional Testing, User Acceptance Testing (UAT), Security Testing, and Performance Testing.

6. Release and post-release

The release of a mobile banking app marks the final stage of the app development process, and it involves making the app available to users through app stores such as Apple's App Store or Google Play, and then monitoring its performance and analyzing the metrics.

Security and why it’s so important

As the use of mobile banking tools increases, so does the need for robust security measures to protect users' sensitive financial information and prevent fraud. Here we’ll cover the most important security measures. 

  • Two-factor authentication (2FA) adds an extra layer of security by requiring a second form of identification in addition to a password. This can include a fingerprint, facial recognition, or a one-time code sent to the user's mobile phone.

By requiring multiple forms of identification, 2FA greatly reduces the risk of unauthorized access to a user's account. 

  • Source code obfuscation is a technique used to protect the intellectual property of a mobile banking app by making the code difficult to understand and reverse engineer.

Obfuscation works by transforming the original, readable code into a version that is harder to read and understand, while still maintaining the same functionality. This is done by applying various techniques such as code renaming, code rearrangement, and data encryption. The goal is to make the code unintelligible to anyone who might try to steal the ideas or algorithms used in the app.

  • Security certificates are used to establish trust between a user's device and the mobile banking app's server, and to ensure that sensitive information is transmitted securely.

SSL/TLS certificate is issued by a trusted third-party organization called a certificate authority (CA). The CA verifies the identity of the entity requesting the certificate, such as the mobile banking application developer, and then issues a certificate that contains the entity's public key. The certificate is then installed on the server and is used to encrypt communications between the server and the user's device.

The most common type of certificate used in this industry is the SSL/TLS (Secure Sockets Layer/Transport Layer Security) certificate. These certificates use the SSL/TLS protocols to establish an encrypted connection between the user's device and the app's server. This ensures that any information transmitted between the two, such as login credentials or account information, is protected from eavesdropping and tampering.

Another type of certificate commonly used is the Extended Validation (EV) certificate. This certificate provides a higher level of validation and authentication than other types of certificates. It also typically results in the green address bar which can easily be noticed by users and helps build trust in the app and the company behind it.

  • End-to-end encryption (E2EE) is used to encrypt sensitive information such as login credentials, account information, and financial transactions. By encrypting this data, the app can ensure that even if the data is intercepted by an attacker, it will be unreadable and useless to them.

  • Auto logout, also known as session timeout, is a security measure that is commonly used in the development of mobile banking applications to protect against unauthorized access to users' accounts. The idea behind auto logout is to automatically log a user out of their account after a period of inactivity, such as when a user leaves their device unattended.

  • Behavioral analysis is implemented through specialized software that observes login location and activity on online accounts. Typically, the primary elements required for this analysis include user recordings, touch heatmaps, and real-time in-app analysis.

You may have encountered notifications from apps that read something like "suspicious activity detected." This occurs when you take an action within the application that deviates from your usual behavior. This type of monitoring is known as behavioral analysis, which is distinct from device fingerprinting, which tracks the device itself. 

Security measures for banking apps

How much does it cost?

Mobile app development is a complex process that involves multiple stages, each of which requires specific skills and expertise. The cost of development can vary widely depending on a number of factors, such as the complexity of the solution, the number of platforms it will be released on, the level of customization required, the dev team location, and so on. Here we will explore the different stages of mobile app development, the time and cost estimates associated with each stage, and the factors that can impact the overall cost of the project based on the average hourly rate of tech specialists in Poland. 

Tech specialistAverage hourly rate, $
Frontend engineer (3)50
Backend engineer (2)60
UX/UI designer (2)25
Data scientist (1)70
QA engineer (2)35
Project manager (1)35

MVP online banking app development stages estimated in hours

StageHoursAverage cost of development, $
Data scientist work20014,000
Project management2007,000

This doesn’t take into consideration third-party integration and compliance work. 

That said, an average mobile banking app might take around 2500 hours to develop, which costs approximately $250,000

Challenges in mobile banking app development 

There are several challenges that may arise during the development of a mobile banking app. Some of these include:

1. Security: Ensuring the security of sensitive financial information is of paramount importance in mobile banking app development. This includes implementing robust encryption techniques, two-factor authentication, and secure storage of user data.

2. Blur view: It is used to obscure sensitive information on a screen, such as a user's personal financial information or account numbers. This is usually done to prevent sensitive information from being viewed by unauthorized individuals.

3. Compliance: Future solutions must comply with various regulations and laws. The main regulations for banking apps include: 

  • The General Data Protection Regulation (GDPR)

  • PCI DSS Compliance

  • SEPA Compliance

  • PSD2 Compliance

4. Integration with legacy systems: Legacy systems refer to older, established systems that a bank or financial institution may have in place, such as systems for accounting, customer management, or transaction processing. Integration with legacy systems can be a significant challenge in mobile banking app development because it’s important to understand the architecture, functionality, and limitations of the legacy systems and to design a robust and sustainable integration plan that takes into account the technical, operational, and security aspects.

5. Balancing the trade-off between privacy and personalization: It is a delicate process and requires careful consideration of the technical, operational, and legal aspects. Developers must find ways to provide customers with personalized experiences without compromising their privacy. It is important to be transparent, secure and respect the user's choice and rights.


Banking application development can be a complex and challenging process, but with the right planning and execution, it can be a successful and rewarding venture, as the market is showing growth. The key to creating a successful mobile banking application is to fully understand the needs and wants of your target audience, and to design and develop a tool that meets those needs in a user-friendly and secure way. The process involves several stages, from planning and design to development and testing, and finally, release.

It's essential to keep in mind that security should be a top priority for a mobile banking app and to choose the right development vendor, who can provide the necessary skills, resources, and security standards. Also, it's crucial to conduct thorough testing at all stages of the development process to ensure that the final product is fully functional and meets the needs of the users.

By following the steps outlined in this article, you can create a mobile banking app that is secure, user-friendly, and tailored to the needs of your target audience, which will in turn provide your users with a convenient and secure banking experience, and to your business, with a valuable tool to reach its goals. If you have an idea for your mobile banking app, contact our team to get a consultation.

🏦 What is a mobile banking app?

A mobile banking app is a software application that allows users to access their bank account information and perform financial transactions using their mobile device. This includes features such as checking account balances, viewing transaction history, transferring money, paying bills, and depositing checks. These apps are typically offered by banks and other financial institutions and can be downloaded from app stores for use on smartphones and tablets. Mobile banking apps provide a convenient and secure way for customers to manage their finances on the go, without the need to visit a physical bank branch or use a computer.

🏦 What are the most popular mobile banking apps?

The most popular mobile banking apps now are Chime, Revolut, Discover, Monzo, and Wise.

🏦 How long does it take to develop a mobile banking app?

It might take around 2000 hours to design, develop, and test a mobile banking app for one platform.

🏦 How much does it cost to develop a mobile banking app?

It costs approximately $170,000 to design, develop, and test a mobile banking app for one platform. We don’t take into consideration third-party integration and compliance work.

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