SEPTEMBER 9, 2022
12 min read
To compete in today’s rapidly changing fintech environment, banking institutions must adapt quickly by combining long-established capabilities with newer, digitally enabled features that customers now consider essential.
First, the rise of mobile banking is an obvious reaction to modern generations’ altered UX needs, or, in other words, a means of survival for a business in the age of digitisation. In fact, 97% of millennials regularly use mobile banking apps.
Second, new business banking app features and mobile app development are required to adapt to the post-COVID remote world with its ’no matter where the service is located’ approach.
In particular, by 2021, 55% of all global customers will prefer to use banking mobile apps while nearly a quarter will refuse to use physical branches. Okay, but what else drives the popularity of banking mobile apps features?
The solution is a set of features that are all perfectly integrated in one place and can be accessed via fingerprint, voice, or image recognition. According to Statista, the most popular services within the modern mobile banking application in May 2021 were account balance views, mobile check deposits, money transfers, and bill payments.
Meanwhile, the excitement surrounding these fundamental functions is balanced by novelties such as P2Ps, QR code/contactless payments, investment tools, and so on. This is especially true in the United States, where the race for best mobile banking began in 2012, and the United Kingdom, where the number of money management tools doubled by 2020. Even so, the other world will not stand still, so are you prepared for a significant change as well?
What Exactly Is Mobile Banking: 7 Reasons to Move a Service to an App
Are you interested in banking as a service but would like to breathe a new life into its product embodiment? Then the best banking app is what you need as a good challenge! But before a start, consider the advantages the mobile banking application testing will bring to you:
- Reduced expenses. As a rule, an app enables greater geo coverage, process automation, and errors reduction through ML technologies.
- Easier client analytics collection. It embraces all the stages of the KYC procedure: from user acquisition to enhanced client engagement and overall performance.
- Better security. Gesture patterns, two-factor authentication, and other biometric verification types work well in the post-pandemic realities, whereas the fraud activity also continues to speed up and evolve.
- Higher ROI. The easy banking problem-solving on the go and exquisite perks that aren’t available in the traditional banks usually explain the devoted rows of customers and solid revenue boost.
- Advanced UI. What has started as a part of the site’s interaction with the user is now shaping the mobile experience of TA and their satisfaction rate with the service.
- Specifically tailored options. Since the apps usually save the costs of the business owners, its creators usually supply their solutions with the extra perks no one has suggested.
- Additional marketing channel. Social media, emails, and what else? An app creates a unique place to quickly spread product-related news and updates through immediate notifications.
Is this list convincing you of the exclusivity of mobile banking apps as a business? Are you ready to invest in Dashdevs’ app product development? That’s great, so let’s clear up one more thing first.
10 Online Banking Features that Matter
Your readiness to give birth to the new banking app is commendable, but to avoid a rocky start, decide on the best mobile banking app features you’d like to integrate into your product as a value proposition to the broad audience. Being an expert in fintech app development, the Dashdevs team will make this choice easier for you. If you’re trends-focused, cherry-pick the main mobile banking application features you like from the list below:
When it comes to mobile banking apps, strong security is always in style. A successful banking app must have robust security measures that go beyond simply logging in with a password or username. A safe sing-in procedure must also be quick and simple. As a result, several organizations incorporate multi-factor authentication and biometrics into their apps.
For financial apps, multi-factor verification and biometrics are the most common methods. They can, however, be hacked. Here are some methods that firms may do to improve app security:
- Encryption and hashing of PINs and passwords;
- Save PINs and passwords on a server;
- Use facilities for storing cryptographic keys;
- For outside app payments, utilize two-factor authentication via SMS.
Core Banking System
A CORE banking system enables banks to perform key banking operations such as accessing bank accounts, money transfers, improving user profiles and other banking data, performing CRM, etc.
Several banks have embraced this system since it enables the quick completion of different financial operations and can handle a large amount of transactions, ensuring the continued operation of banking products.
QR Code Payments
Whereas digital wallets as well as fintech apps already accept QR codes as a payment method, banks should also allow customers to pay with QR codes from within their mobile apps. QR code payments, as opposed to account-to-account transfers (and even credit card payments), reduce friction in the payment or fund transfer journey.
QR technology is growing rapidly in a variety of industries, including banking and retail. Customers can now buy any product they want instantly and without having to deal with anyone, which is especially useful during pandemics. According to recent QR payment surveys, one-third of Chinese customers are already using QR codes to make payments, and the number of Chinese QR code transactions is expected to increase by 16.4% between 2020 and 2024, reaching $1.900 billion in 2020.
These are just a few of the reasons leading banks are incorporating QR code scanning technology into their apps. As a result, QR code payments have become a popular method of instant and micropayment. Payments for cafés, micro businesses, toll booths, car parks, service stations, donations, train tickets, and a variety of other uses are all possible.
Cardless ATM Withdrawals
The Cardless ATM feature enables bank customers to cash out money from an ATM without using a credit card. You only need the bank’s mobile app for verification and authorization.
People’s interest in contactless payments has increased during the COVID-19 pandemic as they try to avoid physical contact with public surfaces. Cardless ATM withdrawal is an excellent way to reduce the number of points of contact when getting cash from an ATM.
An apparent benefit of this feature is that customers would no longer need to carry around their debit cards if this feature became available on mobile banking apps. Furthermore, cardless ATM withdrawals are now safer than traditional card-based ATM withdrawals.
Card skimmers are no longer a threat. Cardless withdrawals typically necessitate two-step verification. For example, a thief who has your phone must know your PIN code, your bank app login details, and the unique PIN for authorizing card ATM withdrawals.
Personal Financial Assistant and Bill Payment
Payment of bills and saving money for investments can be a painful experience because they represent financial obligations that people must meet on a regular basis. Applications for mobile banking can make this process a little easier.
Online banks, for example, can enable automated payments for recurring bills (like electricity or insurance) to help consumers pay on time and relieve the mental load of remembering these obligations. It will also make one-time payments simple with scan-and-pay features, particularly QR codes. This is useful in situations such as property taxes, fine payments, and cash payments.
Besides that, recent mobile banking advancements have turned these apps into personal financial assistants. When it relates to the potential benefits that bank apps should provide, clients should be able to do more than just check their account balance and transaction history.
Some banking apps can now assist customers in monitoring their spending, managing their financial budget, and gaining knowledge to help them make better financial choices. Customers can use their current digital banks to save for and pay for their upcoming vacation.
Peer-to-Peer Mobile Payments
Peer-to-peer (P2P) payments are a more comfortable and effortless method of transferring funds to another person’s account. QR code payments are just one method of doing so.
Aside from QR codes and bank account numbers, some fintech and bank apps support peer-to-peer payments by sending funds to the user’s cell phone number, email, or username. Users don’t even have to know the name of the recipient’s bank. Simply send money to a friend’s mobile number or username, and the bank will handle the rest.
Non-bank fintech players such as PayPal, Venmo, Zelle, and Cash App, among many others, are driving the continued adoption of P2P services. This pattern appears to be repeated in other markets where digital wallet providers are at the forefront of P2P payments.
The benefit of this feature is that it can help businesses settle their debts or payables more quickly than check payments, especially given the delays associated with clearing and verification.
Check Deposit via Mobile Device
Traditional banking is gradually becoming obsolete. Although mobile banking apps have already replaced many services offered in physical locations, not all services can be done by digital alternatives. Banks have actually started offering online mobile check deposits as another digital service.
With his feature, dubbed “remote deposit capture,” customers can use the image capture capability on the bank app to scan a paper check using this feature. The value of the check is instantly transferred into the recipient’s account when the bank’s system checks the digital picture and its data.
Virtual Assistants with Voice Recognition
Numerous banks are providing digital customer support services using AI technologies. Rather than calling a center of customer service to speak with a human operator about routine questions and money transfers, these virtual assistants make it possible to get urgent help with a variety of banking tasks.
Let’s take a look at one example:
Smart Assistant from US Bank. Just by typing, you can use the voice-activated virtual assistant service in the US Bank app to monitor your transactions, analyze spending, existing business operations, and so on. For example, you could say something as simple as, “Plan a $95 payment to Nency,” or you could ask a query like, “How much did I spend at the grocery store last week?”
Not all banks have this voice-activated bot with a comprehensive set of functions. However, some banks are beginning to offer features for quick responses to regular questions or limited interactions. Banks are going to keep developing more advanced AI-powered ways to enhance customer service and assist you with account management.
Digital banking apps may be utilized to build efficient marketing initiatives. Clients can receive updates on unique discounts, cashback, or customized offers by utilizing their banking applications in this manner. Furthermore, banks can collaborate with other commercial groups to provide consumers with exclusive coupon codes for restaurants, stores, or hotels.
Additional Exciting Features
- biometric login—a combination of selfie and ID photo is now sufficient to start using the mobile banking app almost everywhere, so think about this function thoroughly;
- fingerprint/selfie payment confirmation—except for the simple sign up procedure, these 2 identification methods are already applied for payment approval, so look at BMO and MasterCard as good examples;
- budget auto control—an inspiring case of Capital One & Foursquare partnership shows the benefit of implementing analytics and geo-related information for sharing the location-specific money management offers to clients;
- anti-fraud security—an app’s connectivity with the big user databases creates favorable conditions for preventative fraud alerts sending in case of suspicious credit scores activity;
- blockchain support—the opportunity of swift payments and quick digital identity verification set the basis for smooth 24/7 global payments, including the digital coins, which can be the property of a particular digital bank;
- autonomous ecosystem for mobile payments—integrating your app with social platforms and messengers is a good way to enhance banking customer service, facilitate data sharing, and optimize the financial operations flow;
- open API—when it comes to automated data collection and its exchange within the software and Google servers, it’s hard to imagine the better alternative to the API, especially in the fintech mobile industry—take a look at Barclays if you need an instance to examine;
Though the list above can be prolonged, these are the best banking app features that turn users’ attention from physical banking to the mobile-centered future of banking, so beginning with them will guarantee a head start of a new mobile banking journey—both for your customers’ enjoyment and your business development.
Banking of the Future: The Most Innovative Apps in 2022
You’ve already got familiar with the hallmarks of the up-to-date fintech mobile software, and now it’s time to look through the examples that define the banking of the future. Get pumped with the ideas for your future unparalleled banking product!
Passing the stage from the debit card provider for teens to the full-service neobank, the Current app has also positioned itself as the pioneer of the points rewards program, which is the alternative to the usual cash back feature. By this novelty, the US challenger bank is planning to bring a fresh competitive distinction in the mobile banking industry and promote the brand through teaching users how to proceed with payments, savings, and money transfers effectively. The classic stock of free overdrafts and ATMs, immediate spending notifications, and account management are also on the go here, while the option to use a phone’s camera for depositing checks adds much to the continuous popularity of the banking app.
Bank of America
Though the app is primarily notorious for its self-service ATM machines and cardless cash withdrawals, there’s more than that! This digital bank has invented its virtual assistant, Erica, to assist customers with step-by-step financial instructions and increase their literacy in this area of knowledge. In 2021, its usage rate has already accelerated to 67% with a reach of 17m users. However, for those who don’t appreciate the quality of the chatbots and aspire for real communication with the specialist, the banker’s appointment booking features of online banking applications are also available.
Discover, the best bank app for rewards, is easy to use while also providing some of the best features of mobile banking apps. Manage your Discover credit card and bank accounts from your mobile app in a convenient and secure manner, including checking your balance, viewing account information, making payments, managing your rewards, and much more.
All Discover clients can redeem their points for gift cards, and link their Amazon and Paypal accounts to make earning and paying with points on eligible purchases easier. You can also use the Travel Notification feature to keep track of your travel plans and view your credit score for free.
Remember the mention about cardless ATM usage and the NFC system? These are top mobile banking app features that are proper for Wells Fargo’s digital wallet for both iOS and Android mobile users. Using this banking app, customers can uninterruptedly access their accounts and hold sway over their financial operations right from the phone. Among the other contemporary peculiarities of the Wells Fargo app, the key ones incorporate Face ID login, the automatic log out after the user’s inactivity, 24/7 anti-fraud protection online purchases and spending limits notifications, convenient credit scores monitoring, customized navigation, and tap to pay function.
That’s another prominent instance of applying AI into the mobile banking advisor and money management tool. In particular, the Chime app gives its customers an opportunity to handle a payday beforehand (2 days earlier), avoid any fees, execute P2P payments, block a card within an app, automatically save money according to the preferred settings and attain specific financial goals. Owing to this helpful package of functions, Chime’s users are engaged in the pleasant UX that stirs their retention all over the world.
Ready to Create a Banking App for Present-Day Users?
Have you decided on the most valuable banking app features you’d like to implement in your perfect app product? We hope that this article brings you a lot of insights about product development. So, let’s discuss the future of the banking industry together and focus on your product’s needs. Contact us right away, and Dashdevs will get it done at its finest!