In recent years, the number of fintech startups has increased dramatically. All of them aim to satisfy high customer expectations in a fast and effective manner.
Open Banking and the Revised Payment Services Directive 2 (PSD2) have accelerated the competition in the market and made it easier for smaller fintech companies to enter the market. They also aim to end the monopoly held by large traditional banks.
Open banking, in this context, is helping to transform the implacable competition between fintech and banks into a potential alliance that will lay the foundation for better customer products.
Recent has accumulated all of its knowledge regarding app ideas for banking to help you better understand the types and challenges that have flooded this market.
Before you begin looking for an attractive business model and how to make a mobile banking application, you must ask what problem you are trying to solve.
When discussing the future trends in mobile banking, it is essential to remember that customers increasingly seek fast and multifunctional Remote Banking UI Designers for managing their finances.
In 2018, 60 digital challenger banks were operating worldwide. However, this number has quadrupled to more than 250 live neobanks. Many more are in the pipeline.
Neobanks provide solutions to make financial management easier and more favourable for customers. Lower fees because they reduce the costs of maintaining physical branches, better customer service (users with bad credit histories can open accounts in minutes) and better technology (conservative or bureaucratic banks are slower in applying innovation).
Additionally, neobanks do a fantastic job of catering to different segments of society. Chime, for example, is the most important neobank in the US.
Its mission is to offer a range of services to all customers, not just the top 25-30%. Chime is a financial service that helps Americans feel more confident about their finances and money. It charges no transaction or monthly fees, and users can receive their salary up to two days in advance.
Chime charges account fees instead of taking a percentage of transaction fees. Visa charges merchants for customers who use Chime's debit cards.
Revolut, a well-known fintech startup based in London, has set out in its vision to eliminate foreign exchange transaction fees.
With a service allowing users to spend overseas at the actual exchange rate and without fees, it gained popularity. Many customers well received this idea. The company recently added several new features to its app, including cryptocurrency trading, business accounts, and more.
The choice of a business model is crucial for mobile banking development. Five business models are globally leading when it comes to Neobanks:
Interchange-led. In this business model, a neobank receives the largest share of the revenue from interchange fees.
A neobank is paid every time a customer uses the card of a neobank as a payment method. This business model is used, for instance, by Neon and Chime.
Credit-led. Uses a credit-first approach, providing credit cards or similar offerings and then opening a bank account.
Brazil's Nubank is an excellent example of a credit-led business model.
Ecosystem-led. With this business model as the base, Challenger bank makes money by integrating every service in one place.
You can bring in the most important and valuable services within your bank, which increases profit potential. Monzo and N26 are the best examples.
Asset-led. This model allows neobanks to make money by offering savings accounts and acquiring deposits at competitive rates like Goldman's Marcus or Beam.
Product extensions. This business model is focused on product extensions that eliminate the barriers between financial domains (Robinhood and Wealthfront).
Some forecasts indicate that the largest drivers will be product extensions by larger tech companies like Square Cash App.
We are currently witnessing the second wave of new banks, which are more targeted and target-specific opportunities.
For the agricultural community, this could be freelancers, SMBs or companies specializing in e-commerce.
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Let's not just focus on the mobile banking trends but also on how they relate to product features and technologies.
Now let's examine another critical challenge entrepreneurs face when developing banking apps: compliance with regulations. This is particularly important for small fintech startups, which pay more attention to product and engineering. Sometimes there's a lack of knowledge about managing risks and complying with multiple regulations to avoid penalties from regulators.
Fintech compliance regulations are not yet drafted and are constantly evolving. Fintech companies, like banks, should communicate with regulators to stay informed about the latest compliance developments to ensure that consumers have access to the best digital financial services and products.
Here are some key regulations that affect fintech companies:
US anti-money laundering (AML) regulations: Bank Secrecy Act (BSA) and US Patriot Act. These measures measure the involvement of fintech in authorities' efforts to combat money laundering.
Gramm-Leach Bliley Act or the Financial Modernization Actin requires financial institutions to inform their customers about how their data is being shared and to take steps to protect their sensitive information.
2012 Jumpstart Our Business Startups Act is designed to increase security for crowdfunding platforms by introducing maximum fundraising amounts and disclosure requirements.
Fair Credit Reporting Act sets up methods to protect information collected from consumer reporting agencies, such as credit bureaus and medical information companies, or tenant screening services.
Truth in Lending Act (TILA) contains consumer protection provisions for credit card holders. These are intended to improve credit card disclosures, rate increases, and payment allocations.
Security Act and Exchange Act regulate Initial Coin Offerings.
Depending on their business, there are several US licenses that fintech products must have.
Money Service Business Registration is required by all market participants susceptible to fintech AML risk and subject to the BSA reporting requirements and compliance rules.
This includes digital wallets, mobile payments systems and peer-to-peer transfer systems.
A money Transmitter License is required by all businesses that transmit money. The activities that fall under this category in the US vary from one state to the next.
In some cases, obtaining coverage can be costly and time-consuming.
Offerings through Reg A. Offerings through Reg A. The SEC still applies to federal and state jurisdictions.
Similar frameworks exist for smaller companies (Reg D) and private placements (Reg A). Fintech companies offering new security products must register and adhere to these requirements before launch.
Firms that are involved in cryptocurrency transactions will require BitLicense. The New York State Department of Financial Services (NYSDFS) issues the document.
Businesses learn more about their users and their needs to improve their design and features. Let's look at the key aspects of mobile banking development.
App security is a growing concern due to the increased use of mobile devices to manage daily financial operations.
Hired Banking UI Designers can be vulnerable to data theft and breaches, even the most sophisticated. Customers use them to store and manage sensitive financial information. Mobile operating systems are also susceptible to viruses, bugs, and malware.
These many open doors for cybercriminals.
Users often have to take extra steps to ensure safety. Users become more frustrated the more steps they have to take.
The ideal app can provide multiple steps of seamless authentication (including biometrics). This will ensure maximum security and minimal friction.
Most bank apps are known for their clunkiness. Because it is difficult to transfer the backend complexity onto an interface and ensure a bug-free user experience, banking and mobile financial services generally adapt slower to change.
Revolut's UK-based online bank app and the bank takes the user experience to a new level. It's simple to navigate the app, it's easy for users to find specific features, and it looks nice.
Design thinking could be a great solution to many problems mobile banking app development presents regarding interface design and user experience.
Banking UI Designers and business owners can use design thinking to better understand their audience's needs, which they can then apply in fintech software development.
This approach focuses on communicating with users rather than speculating what they want. Software solutions meet certain criteria, such as being desirable (it adds value for customers while ensuring great customer service), technical feasibility (all functionality is available to perform different tasks) and economic viability (expenses to develop banking apps are reasonable).
Our team has extensive experience in applying design thinking methodology. In our other article, we will give a detailed account of two cases where we used design thinking in finance software projects to assist our clients.
A mobile banking app that is the best should be able to offer everything a branch bank can offer. One example is the rise in popularity of neobanks: Since entering the global fintech market, these challenger banks have continuously improved their apps and expanded their features to make them attractive enough to completely replace brick-and-mortar banks.
The services offered by neobanks are available to different customers and can benefit them. There are no transaction fees; they offer instant access to all features and faster customer service.
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Although we recommend consulting a business analyst to help connect the dots between your existing business processes and app development scope, some work can be done by you on your own.
According to their latest mobile banking app trends research (2025), Statista researchers identified the top features of banking apps as multi-layered access and onboarding.
They also highlighted customizable dashboards, deposit checks, card management, cardless ATM access, notifications and account balance/transactions historical.
Let's take a closer look at each one of these features:
Multi-layered transaction protection and access
Your users should be able to quickly log in with their biometric data, such as fingerprints, FaceID, and PIN codes.
A user should be able to mix these security methods, with one step inactive while active.
Onboarding
Use guides and highlighting to show the user key features and locations. It can be difficult to use an online or mobile banking app.
However, keep the steps to a minimum. It is a good idea to keep initial registration fields to an absolute minimum.
Customizable dashboards
Imagine creating your main page dashboard using widgets that display exactly what you need at a glance. Even though this feature is not part of the core system functionality, it will add significant value to your app.
Check deposits
Customers should be able to deposit checks directly into their accounts from home without the need to visit the branch.
Simple.
Card management
Virtual or physical - The best mobile banking app must allow you to set cashback programs and issue, close or change PINs.
Mobile payments
You can pay bills, service charges, mortgages and loans. It's all about making it easy to access information. For example, you can store the account number for a service or the mobile number to locate the correct bank account.
You should also include exchange rates, the ability to use Apple Pay or Google Pay to make payments, and QR code scanning.
NFC payments and ATM access with a cardless ATM
Your unique value proposition can include the ability to eliminate plastic, which is a distinct advantage over other financial services and banks.
Notifications
You can integrate text, email, and push messages. Highly configurable and convenient notifications are the best choice - users can choose when and how they want to receive them.
Balance and history of transactions/tracking
This is a must-have tool that can be used to help you plan your expenses, budget planners, bill-splitters and other per-month stats.
You can also use pie charts, spending filters and more. Allow users to see how much they spend on what.
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App development can be done in many ways, each with its benefits and drawbacks. There are two options for mobile banking app development: cross-platform and native.
Native development centres around an operating system. Android and iOS are two examples. Native apps can only work on the platform they were designed for.
The package is specific to that system and delivered to the phone's memory.
Native development requires a deep understanding of the platform's code and framework. You will need to create two apps to make an app for iOS and Android.
They will be similar in their functionality but different in the backend. Android apps are typically made with Java and Kotlin, while iOS apps are made with Objective-C and Swift. A naive approach is used when developing complex apps that require high performance, security, quality, and overall product quality.
Cross-platform development can often be confused with hybrid development. Although both approaches offer code sharing as a benefit, they are not identical.
Cross-platform apps use a single codebase that can run on Android and iOS. Hybrid apps are created with web technologies (HTML5, CSS and JavaScript). Cross-platform apps can often offer a near-native user experience as they use the native rendering engine of each platform.
The cross-platform approach is becoming more popular and widely recognized as one of the most important mobile banking industry trends.
Popular frameworks for cross-platform development are Flutter and React Native. These frameworks were provided by Google and Facebook (based on Dart languages).
I was assigned to create the first version of a business application in the context of a smart bank concept. Our team of developers was able to create an app that meets all requirements, despite being limited in time.
We paid special attention to mobile banking app security. To improve security, we converted Dart code from a human-readable format to make it more accessible to all users. This is a critical step in cyberattack resilience, as it significantly complicates reverse rendering.
React Native, Java, Kotlin, and Kotlin offer greater security.
We strongly believe microservice architecture can be used in mobile banking app development to maintain high-performance software systems.
This will make the app more resilient to external and internal issues. This approach was used to develop the Rosbank app. It made the product more resilient to all faults and ensured high availability and scalability.
Rosbank could offer new functionality and customizations quicker due to its improved deployment speed and facilitated infrastructure maintenance.
If there is no structure for approaching the development process, it won't be easy to get one completed on time.
Here are the steps for developing a mobile banking application. The steps may vary depending on the project. This is the development framework that we use.
This is the most important step. This is the most important step. You will be less likely to be disappointed or tricked into paying more for a project that is not finished.
An essential step in the development process is to create a minimum viable product version. An MVP is a minimum viable product version with enough features and design to appeal to customers.
This will help you validate the app's market fit and overall concept. It is important to get feedback from users at this stage. Your MVP will give you more confidence that your app will succeed.
This step requires additional checks by you and the developers. You can't compromise app security or save money by ensuring the security features mentioned above are in your app.
Your reputation will be destroyed if you have a data breach or money stolen from users.
Developers need to combine physical security with server security. This includes good security processes during onboarding, code obfuscation and encryption traffic.
They also need to add functionality such as transaction verification and biometric ID.
Keep an eye on the delivery milestones and the deliverables. You can also keep track of the app delivery process.
This step can take quite a while. This new app will need to be tested, analyzed and given extensive feedback. Some things may change.
It's time for you to paint the app once it is complete. You will be able to complete at least half the interface work on your app by this stage, but you still need a UI designer to make it look really good.
It is now ready for shipping. Any other work on the app will not affect its course. Plan API (Application Software Interface) allows two apps to exchange data.
You can also integrate with other apps such as document sign software, third-party expense trackers, accounting software, etc.
All you need to do now is to listen to your customers, fix any bugs that may have made their way to the top, and provide the best possible user experience.
You should have all documentation about app features that is accessible and easily usable by your users. It will save you money on support by having help articles, chatbot advice, etc.
There are two options when it comes to finding the right developers for your app's mobile banking app: either hire Banking UI Designers for full-time or outsource.
Outsourcing development can mean a contracted development company manages the entire development project. Both in-house and contract-based employees need to have the same requirements: the ability to develop fintech expertise, the same values and work culture, and the ability to use the latest technology.
Each approach has its pros and cons.
Outsourcing app development allows you to get the best mobile banking app development talent at reasonable prices.
Hiring an external contractor can also save your HR department and management from many problems. The third benefit of outsourcing is that a professional development team works on client projects and considers that the project may be handed to another team.
They aim to make the internal structure, code, and other features easy to understand by other developers.
Outsourcing development, on the other hand, has its risks. In-house development is more controlled and involved, but outsourcing has fewer pitfalls.
Internal employees are more likely to share your core values and better understand your business needs than external contractors.
However, it is important to consider the unique features and limitations of your product as well as the budget and complexity of the app before making a final decision.
A good banking app is built on security and good design. It also has access to bank services and products. It is important to plan the features required for each app iteration and ensure that the MVP helps identify any design flaws or product-market fit issues.
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