How to build a Mobile Banking Application in 2024

calender April 8, 2024
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Ravi Ranjan

Flutter & Android Developer | Agile Leader

Going mobile is not just a trend but a necessity in business, with the banking and finance industry being no exception. The ease that modern day digital users have gotten used to at the back of the convenience, speediness mobile app provides, is something that has rippled down to the process of how they manage their finances as well. Mobile banking has become increasingly popular over the last decade, especially on the front of transforming how people manage their finances.

Mobile banking apps have revolutionized the way we manage our finances. They have made it easier for people to access their bank accounts, transfer money, and even pay bills from their smartphones. However, with so many mobile banking apps in the market, it can be challenging for banks to stand out and retain customers.

To stay ahead of the competition, banks must offer unique features that add value to their mobile banking apps. This article will discuss in detail how to create a mobile banking app, features to include in them, challenges faced by banks and mobile banking app development, and finally, how Ailoitte can be the perfect development partner. But before we go further; let us see why you should build a banking app before we see how to develop an online banking application.

 Why You Should Build a Banking App

Mobile banking allows customers to conduct financial transactions remotely, and the app can satisfy their need for 24/7 access. From a business point of view, developing a mobile app can give you a competitive edge over top banks that are still on the edge of the true capabilities of a feature-rich, innovative financial application.

The following are some benefits that banking mobile apps can offer

Fast access to accountsCompetitive advantage
Easy money transferEasy A/B testing
24/7 access to accountsHigher user engagement
User-friendly UIMaximal value through push-notifications
Spending trackerCost saving
CashbacksEasy customer analysis
Better functionalityPersonalized services 

Also read: How To Build a FinTech App: Types, Cost, Process & More

Steps to Create a Mobile Banking App

Given the increasing demand for online banking; building a mobile banking app is wise for any financial institution seeking to stay relevant and competitive in today’s digital world. You can follow the steps below to create a mobile banking app.

Step 1: Research, Define the Purpose and Scope of the App

Step 2: Choose the Platform

Step 3: Decide The Features

Step 4: Design the App

Step 5: Choose the Right Tech Stack and Develop the App

Step 6: Integrate Security Features and Test

Step 7: Submit the App to the App Store/Play Store

Step for Building a Banking App

Step 1: Research, Define the Purpose and Scope of the App

Research the target market and analyze the competitor’s offerings. Next, define the key problems that users face and generate ideas on how you plan to solve them through your banking application. Once you finish the research, you get a brief idea of the following.

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

Now define the purpose and scope of the app, which involves identifying the specific services that the app will offer, the target audience, and the technology platform that the app will be built on. Some of the services that the app could offer include account management, bill payments, fund transfers, loan applications, and balance inquiries.

Step 2: Choose the Platform

The next step is to choose the platform on which the app will be built. There are two primary platforms to choose from: iOS and Android. Both platforms have advantages and disadvantages so the choice will depend on your target audience and budget.

iOS is a popular platform among affluent users, while Android has a larger market share. Also, if your target audience is both, you can consider building a hybrid app that provides a native feel for both.

Step 3: Decide The Features

Mobile banking apps have revolutionized how we manage our finances. Some key mobile banking app features must include the following.

Account management

Customers can manage their accounts from the mobile app, including viewing account balances, transaction history, and account details.

Bill payments and transfers

Allow customers to pay their bills and transfer funds directly from the app, including setting up recurring payments, transferring funds between their accounts or to other people’s accounts, and scheduling payments in advance.

Card management

Customers can manage their debit or credit cards from the mobile app, including activating and deactivating cards, setting spending limits, and reporting lost or stolen cards.

Alerts and notifications

Your app should allow customers to set up alerts and notifications for various account activities, including deposits, withdrawals, and low balances.

Savings goals

Mobile banking apps should allow customers to set savings goals and track their progress toward those goals.

Personalized offers

Banks should be able to use customer data to offer personalized offers and promotions through the mobile app, helping customers save money and earn rewards.

Chat and customer support

Customers should be able to chat with customer support directly from the mobile app, making it easy to get help when needed.

Voice banking

Some mobile banking apps now offer voice banking capabilities, allowing customers to perform banking tasks using voice commands which you can include.

Credit score monitoring

You can offer credit score monitoring, allowing customers to monitor their credit score and receive alerts when there are changes.

Loan management

Customers should be able to manage their loans, including viewing their loan balances and payment history and making loan payments.

Branch Locator

Customers must be allowed to find nearby branches and schedule appointments with bank representatives when needed.

The following are other nice-to-have mobile banking app features you can include in the banking app.

Biometric Authentication

Your banking app can offer biometric authentication, which allows customers to log in to their accounts using their fingerprint, facial recognition, or iris scan as an added layer of security.

Personalized Financial Insights

Mobile banking apps can provide personalized financial insights that help customers understand their spending habits, identify areas where they can cut costs, and set savings goals.

Budgeting Tools

Including budgeting tools in banking, apps allow customers to create and track budgets, set spending limits, and receive alerts when they are about to exceed their limits.

Mobile Check Deposits

This form of mobile cheque has become popular, where customers can take a picture of their cheque and deposit it into their account without visiting a branch.

Card Control

Customers must easily block and unblock their debit or credit cards. This feature provides added security and peace of mind to customers who misplace their cards.

P2P Payments

Peer-to-peer (P2P) payments are becoming increasingly popular, and your app should allow customers to send and receive money without using a third-party app.

Contactless Payments

They are becoming the norm in today’s world and the app can provide customers the ease to make purchases using the integration of technologies like NFC and Beacon.

Savings and Investment Opportunities

Mobile banking apps should offer savings and investment opportunities that allow customers to earn interest on their money. These features can include high-yield savings accounts and investment accounts.

Integration with Personal Finance Management Apps

Many customers use personal finance management apps like Mint, YNAB, and Personal Capital to manage their finances. Integrate these apps with your banking app to give customers a more comprehensive view of their finances.

Customer Service Chatbots

AI-enabled chatbots can provide quick and efficient customer support. It can handle routine inquiries, leaving customer service representatives to focus on more complex issues.

Loyalty Programs

It can be used to reward customers for using your services. These rewards can include cashback, discounts, and exclusive offers.

Branch and ATM Locator

Offering a branch and ATM locator that helps customers find the nearest branch or ATM can be especially useful for traveling customers needing access to their accounts.

Multi-Language Support

Mobile banking apps should offer language support that allows customers to use the app in their preferred language. This feature can be especially useful for customers who speak languages other than English.

Step 4: Design the App

The app’s design is a critical aspect of the development process. It is essential to create a user-friendly interface which is the face of your application and the first thing that users see after they open the app.
It must be intuitive, easy to navigate, and provide a seamless mobile banking user flow. Moreover, it should also be consistent with the branding elements of the financial institution. A good design should include the following elements:

  • Simple and clean layout
  • Clear typography
  • Intuitive navigation
  • Consistent color scheme
  • High-quality graphics and images

Step 5: Choose the Right Tech Stack and Develop the App

Once you have completed the design, the next step is to choose the tech stack based on the mobile banking app architecture, business goals, mobile banking trends, and budget.

  • Setting up the development environment: It involves installing the software and tools required to develop the app.
  • Developing the backend: This involves developing the server-side components that will handle the app’s data processing and communication with the financial institution’s systems.
  • Developing the frontend: Includes developing the user interface with which the end-users will interact.
  • Integrating third-party services: Integrating third-party services such as payment gateways, SMS providers, and email providers.
  • Testing the app: This involves testing the app to ensure it works correctly and meets the requirements.

You can choose the tech stack depending on your platform and the features you wish to implement. The right tech stack will help lower costs, shorten financial app development time, and speed up the time to market.

The following is the tech stack you can choose to develop the app.

Tech Stack for Mobile Banking App

Objective C
Development Tools
Android Studio and Android Developer Tools (ADT)
Jetpack Compose
Xcode IDE

Step 6: Integrate Security Features and Test

Mobile banking apps handle sensitive data, including personal and financial information, making security a crucial consideration. Therefore, the app must have robust mobile banking security features to protect user data. Some security features the app should have to include:

Two-factor authentication:

This involves requiring users to enter a second form of identification, such as a password or fingerprint, to access their accounts.


All data transmitted between the app and the server should be encrypted to prevent unauthorized access.

Biometric authentication:

This involves using biometric data, such as fingerprints or facial recognition, to authenticate users.

Secure socket layer (SSL):

SSL encrypts data during transmission.

Test the application once you build a module or two. Running regression and unit testing also helps before you release the app to a large audience. Ultimately, test the application with a small, controlled group of users before you submit the app or launch it for the masses.

Step 7: App Submission and Launch

Once you have completed the development process and integrated the security features, the next step is to submit the app to the App Store for iOS apps and Play Store for Android apps approval. Launching the app on Google Play Store and Apple App Store has specific guidelines to meet before it can be published.

Decide an official release date and do active marketing and advertising of the mobile app to attract users and get feedback. You can market the app in multiple ways, and it must be an obligatory point in your app budget.

Step 8: Support and Maintenance

Maintenance and updates are a crucial step and a post-development phase you cannot miss for ensuring its reliability and security. The costs, which include ongoing monitoring and testing to identify and address any security vulnerabilities, compatibility with the latest devices and operating systems, bug fixes, and performance optimization, should be accounted for in the mobile banking app development estimate well in advance.

Estimate for Banking App Development by Ailoitte

Mobile Banking Development Challenges

Despite its potential benefits, developing and implementing a banking app may face numerous challenges that must be addressed to ensure its success. Financial institutions face the following significant challenges while developing banking apps.

Security and Data Privacy

The primary challenge that financial institutions face when developing a banking app is ensuring that customer data is secure and private, which they expect. Any data privacy breach could lead to a significant loss of trust in the bank. Therefore, banks must invest in robust security measures such as encryption, multi-factor authentication, and biometric authentication to ensure the security of customer data.

Compliance and Regulation

Banks must comply with various laws and regulations, such as the General Data Protection Regulation (GDPR), Anti-Money Laundering (AML) regulations, and Payment Card Industry Data Security Standard (PCI DSS). Failure to comply with the above regulations could result in paying hefty fines, loss of reputation, and legal action. Therefore developers must ensure that the app meets all regulatory requirements.

Integration with Legacy Systems

Most banks have legacy IT infrastructure incompatible with modern mobile app development technologies. Legacy systems are often complex and require considerable resources to integrate with a mobile app. Therefore, banks must find ways to modernize IT infrastructure without any system downtime while ensuring existing systems function correctly and offer seamless integration with the mobile app.

User Experience

Banks must invest in UX design to ensure a good mobile banking app user experience and meet customer expectations. Customers expect to complete transactions quickly and efficiently, and any delays or glitches in the app could lead to frustration and customer churn. The app should be designed to provide a consistent customer experience across all devices and platforms.

Performance and Scalability

Mobile banking apps should perform well and handle significant transactions without experiencing downtime or performance issues. To back this up, banks must invest in robust infrastructure and testing to ensure their mobile app performs well and meets customer expectations. On the other hand, developers must optimize the app’s performance and speed to provide a smooth experience.

Cost of Developing a Mobile Banking Application

The overall mobile banking app development cost can vary anywhere from $30,000 to $300,000. The cost may go higher up or down depending on the complexity of the app, tech stack used, platforms are chosen, features you wish to include, developer skill, experience, and location. The cost can further increase or decrease depending on the app’s overall complexity and the feature list.

The following are the costs(estimated) to develop a banking app

Banking App TypeEstimated CostTime Frame
Simple App$30,000 – $60,0003 to 6 Months
Medium Complex App$70,000 -$120,0006 to 9 Months 
Complex Feature Rich App$150,000 -$300,0009+ Months
Custom Mobile Banking App Solution by Ailoitte Technologies

A standard team to develop a mobile banking app includes:

  • 1 Project Manager
  • 2-3 Backend Developers
  • 2-3 iOS/Android Developers
  • 1-2 Designer
  • 1-2 Quality Analysts

The following are the hourly rates of mobile app developers with the US being the highest, closely followed by the UK and Latin America.

CountryHourly Rates
Latin America$35 -$50

Why choose Ailoitte to create a Banking App

With the right approach, mobile banking apps can transform the sector by providing customers with fast, secure, and convenient access to financial services.
If you wish to build a mobile banking app, you are at the right place. Ailoitte is a leading banking app development company that builds cutting-edge banking apps. We have extensive experience developing highly secure and scalable banking applications that use the latest technologies and industry best practices to ensure that apps meet the highest security, reliability, and performance standards.

With our skilled team of developers, designers, and project managers, we work closely with clients to ensure the banking app is designed to integrate seamlessly with existing banking systems and technologies. This means that businesses can easily integrate the app into their existing infrastructure and provide their customers with a seamless experience across all channels.


How do mobile banking apps work?

Mobile banking apps allow a user to access their account 24/7 and conduct financial transactions using a device, anywhere and anytime.

What are the user requirements for mobile banking apps?

Some key user requirements for a mobile banking app are having a simple yet user-friendly design, advanced security with alerts, offering core banking features, personalized money management, accessible customer service options, digital payments, and mobile wallet payments, etc.

How much does it cost to develop a banking app?

The cost of developing a banking app starts at $30,000 for a simple app with basic features, and for a feature-rich app, it starts from $1500,000.

How do mobile banking apps make money?

Mobile banking apps make money by charging customers for account subscriptions, offering premium accounts, providing marketplace services, interchange fees, extending credit cards, offering SME/OD accounts, providing loans and mortgages, etc. 

How long does creating a mobile banking app take?

It can take 5 to 10 months to build the MVP, around 700 hours. A full-fledged banking app takes about 1250 hours, which is around 8 to 12 months for a simple app, and may extend to more time depending on the functionalities of the app.

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