With the ever-growing mobile use among the world’s population, it is essential to consider creating a digital banking app for your banking institution. In most organizations, digital banking apps are used for efficient customer service and for providing valuable information about a company’s products. By making an app for your bank, you can serve more customers without additional costs, and with more convenience.
We hope that the content we share here is useful and will help you build a banking app successfully. The steps shared in this blog post are applicable to any in-house digital banking app development that you might undertake. You also can explore mobile banking application development companies to pick the most suitable one. Software development companies like Yalantis will conduct market research, select appropriate technologies, and offer an effective software development approach.
The statistics prove the attractiveness of digital banking for consumers. According to Statista, the number of online banking users in the US is projected to significantly increase between 2021 and 2025. There were 197 million such users in spring 2021 and is predicted to reach nearly 217 million by 2025. The global digital banking platform market is developing by leaps and bounds. Study by Grand View Research points out that the market size was estimated at more than $20 billion in 2021 and is going to grow at a CAGR of 20.5 percent from 2022 to 2030. All these facts and those provided below assure financial organizations of the expediency of creating a banking app.
Why develop a digital banking application
Digital banking applications can be an excellent tool for banks to increase their revenue and customer loyalty. For example, by providing customers with information about their spending habits, banks can help them save money by showing how they can make better spending decisions.
In general, banks have a lot to gain from digital banking applications:
- Customers will be able to access their accounts anytime, anywhere on any device.
- Customers can make payments and complete other transactions through their mobile devices, which means more opportunities for you to sell products or services.
- Bank employees can effectively manage customer interactions with digital customer service agents.
As you see, it makes sense to go for banking app development. To know how to create a cutting-edge banking app and get started on the right path, check out these five steps to follow.
5 Steps to Digital Banking App Development
Developing a digital banking app involves more than just creating a functional application though; it also needs to be user-friendly, secure, and scalable. To release a product of such high quality, make sure you’ll do the following.
1. Prioritize requirements for MVP development
Once you have a clear understanding of your digital strategy, you can start prioritizing the requirements for your first Minimum Viable Product (MVP). Keep in mind that a successful MVP should:
- Be built with a minimum of functionality. The more functionality the app has, the more difficult it will be to support and maintain.
- Be simple and easy to use, even if that means cutting out some features that are important to you personally.
- Be a product consumers will be willing to pay for, even being not ideal yet. If it’s free, then you’re relying on users telling others about your app so they can spread the word about how good it is.
2. Find a development partner with FinTech expertise
Take this step if you decide to outsource software development and keep in mind that your choice of such a partner is key. The process can be complex and lengthy, but if you choose the right team, the results will be worth it.
A good partner should have a thorough understanding of the FinTech industry, including how digital banking is changing and what customers want from their financial services providers. Read reviews to make sure your future partner provides development services of high quality, on time, and within budget.
3. Decide on main features and consult with the team
This will help you understand the team’s ideas and develop an effective strategy for each feature. Take into account the target audience when creating a digital banking software solution. For example, if you want to target young people then you would have to make sure that your app has features that appeal to them.
As soon as you have decided on the key functionality, proceed to creating mockups for all features. This will help you visualize how each feature will work before you start developing it.
4. Take part in architecture design and technology stack selection
At the heart of development of mobile banking software are the choice of the technology stack and a proper architectural design.
The technology stack should be based on modern, scalable, and secure technologies. It should also be easy to manage, maintain, and scale. A sophisticated architecture design will contribute to developing a robust and secure software solution.
5. Supervise the development process to ensure it aligns with your needs
Supervise the entire development process to ensure that it aligns with your needs, from design and architecture to development and testing.
In case you choose to cooperate with a third-party development provider, here are some tips on how to supervise digital banking app development:
- Define what you want before you start looking for developers
- Set clear goals and expectations with your developers
- Review the progress of your project regularly
Conclusion
As digital payment technologies and systems advance, the idea of taking advantage of these advancements for a business is becoming increasingly popular. Companies can now take advantage of mobile payments, mobile banking with contactless purchases, and other advanced payment systems. These technologies are on the rise, and thus banks need to be prepared to engage in cooperation with other businesses and technology companies.