How to create a mobile banking app in 2023-2024: Key features, tech stack, and common pitfalls

Ins and outs of banking app development in 2023-2024

The mobile banking market is heated nowadays, but some entrepreneurs may fear its complexity. And it’s not for nothing — there are many competing apps, law restrictions to follow, and a lot of features to include in the interface.

In this article, we’ll try to make banking app development less scary and explain what features any banking app needs to have, what difficulties you may encounter on this path, and what unique ideas you can implement in the process of mobile app development.

Current statistics as the key reason to embank on banking app development

Simply put, a mobile banking app is software designed for mobile devices that gives users the ability to perform financial transactions and access banking services remotely. These types of apps enable customers to check their account balances, transfer money, pay bills, deposit checks, and more with a few taps on their devices. There are a few stats that give a few points in favor of banking app development.

The rising number of smartphone users

To begin with, the overall number of smartphone users rises annually. As of 2023, the smartphone user base is expected to reach at least 5.1 billion users, and the number is projected to grow and peak in 2028. No wonder more and more people are switching to getting more digitized services that can be leveraged with the help of their smartphones.

The growing popularity of mobile banking

Mobile banking has seen a surge in prevalence. Numerous banking clients have recognized its benefits and consequently altered their banking habits: They enjoy an opportunity to save time and the convenience of conducting banking transactions from any location, at any time, using a smartphone or computer with no need to go to a bank branch within its operational hours.

With its rising popularity, the uptake of online banking has significantly increased in recent years and is projected to continue expanding. Usage rates are particularly high in East Asia and Europe, and a steady increase in adoption is also anticipated in the United States. Projections suggest that by 2025, the number of mobile banking users in the U.S. could reach 217 million.

Tech-savvy generations actively adopt mobile banking

Mobile banking has become a habit of young tech-savvy generations. Many members of Generation Y and Z choose purely digital banks as their primary banking facility. In 2021, a study conducted by FDIC showed that 75% of citizens aged 15 to 24 reported mobile banking as their primary banking choice. At the same time, only 15.3% of those 65 or older report using mobile banking apps primarily.

Age groupPercent who primarily use online bankingPercent who primarily use mobile banking
Here’s the table presenting banking methods that people from different age groups primarily use

Neobanking is a trend

Neobanks are banks that function online and don’t have brick-and-mortar branches that customers can visit. Their advent brought a change to the industry of traditional banks and inspired them to gain online and mobile presence more actively to withstand competition with neobanks.

In 2022, the most established traditional banks held on to their top ranks, with banking apps from financial giants such as Capital One, JPMorgan Chase, and Bank of America garnering a substantial number of downloads. Concurrently, there has been a swift growth in the adoption of neobanks. Chime is one of the most striking neobank examples. It emerged as the preeminent mobile banking service provider in the United States, boasting 5.8 million monthly active users.

Quick summary

Mobile banking entered the lives of people from countries from different parts of the world. The new coming generation is also moving towards using mobile banking apps more. That’s why, in our opinion, now is the right time to delve into banking app development. On the other hand, this path may not be easy due to considerable competition in this field. Therefore, the startupper who is to enter this heated market will need to offer a product with outstanding and unusual features as well as a unique business model.

Essential features to pay attention to during banking app development

We may spend hours guessing what functionality users expect to see in the typical banking app or have a look at the survey provided by Statista, where banking app users enumerated key reasons for using this type of software. Based on this graph, let’s create a list of key features that can be used in the process of banking app development.

Banking app development: A graph that reflects what users usually leverage their mobile banking apps for
Here’s what users usually leverage their mobile banking apps for

Account management

Following a swift and secure login, most users will expect to land on the home page where they can access key information about their account. The account management flow should provide users with an opportunity to view their balance, see the history of recent transactions, and allow users to edit their information. These features are of great importance, as more than half of users come to the app to check their balance and understand what they spend money for. To give them this opportunity, there is a need to work through this flow in the process of banking app development.

KYC procedure

KYC is essential for most brick-and-mortar and digital finance organizations. The meaning of this procedure is to verify the customer’s identity and let them prove that they’re the ones who they claim to be. This is a crucial procedure that helps to fight off financial crime and money laundering, and you won’t be able to omit it when embarking on a path of banking app development.

Different countries have different requirements for KYC but in most of them, a user will be required to verify their identity by providing their ID number, verify their phone number, email address, information about their employment status, home address, annual income, and many other details.

Banking app development: An example of how the KYC procedure may look like
The KYC procedure can be a part of onboarding as users need to verify their identity before using the app

Transaction management

After checking the balance, users may want to engage in transferring their assets. That’s why when stepping on a complicated path of banking app development, don’t forget to work through the transaction management flow that provides the freedom to transfer funds internally and to third parties, the convenience of setting up recurring payments, and the ability to pay bills promptly. It’s important that transactions are supported by clear notifications or receipts, and that the app provides an easy-to-use transaction history for keeping track of personal finances.

Card management

Users should be able to effortlessly navigate the cards they have attached to the account. Card management flow allows users to activate new cards, set or change PINs, report lost or stolen cards, and monitor card-specific transactions. It is also here that they may enable or disable foreign transactions and set up transaction alerts. To add, in case app users use multiple cards within one account, they should be able to quickly switch between them and always understand which card they are operating with. The significance of this flow is in providing users with the ability to be in full control of their cards, operations, and security settings.

Banking app development: how card and transaction management flows may look
Here’s how card and transaction management flows may look

Customer support

Also, consider getting robust customer support features in the process of banking app development. Users should promptly locate robust customer support options in the app. This segment of the app allows for direct communication with the bank’s support team, access to a comprehensive FAQ for resolving common queries, and the utilization of in-app messaging or chatbots for instant assistance. It’s crucial that customers feel supported at all times, with options for escalating more complex issues to phone or email support.

Additional features you may consider getting in the process of banking app development

We have enumerated the basic features for banking app development above, let’s have a look at the list of nice-to-have features that will make the in-app experience extra cool.

Spending tracker

Many users who visit the app want not only to make payments and money transfers but also to see detailed analytics of their income and expenses. That’s why it’s one of the features to consider.

Alternative methods of payment

To make users fall in love with your app, it should provide as many conveniences as possible, that’s why it’s worth implementing payments with QR-codes and NFC-based payments that became especially popular in post-pandemic times.


Once our team ran a design workshop and a survey among our Ronas IT employees to adjust the app’s interface to the preferences of potential users. During the survey, we found out that many people feel that most of the apps lack a bill-splitting option, and this issue concerns most of the app types including delivery and taxi apps. That’s why bill-splitting might be another great feature to add to your banking app development project.


The cashback feature in a mobile banking app serves as an attractive incentive for users, encouraging frequent use of the app for various transactions. As a tangible benefit that customers can accumulate and either withdraw or apply to future payments, cashback can effectively drive higher transaction volumes and strengthen the user’s relationship with the banking institution.

Voice-based features

Adding voice control for tasks such as balance inquiries, fund transfers, or bill payments through voice commands, the app appeals to users who value a hands-free and efficient experience. This kind of feature may add inclusivity to the app and make it easier to use during dark hours or cloudy weather. It might add inclusivity to the app as well since it would be easier for people with visual impairments to use the app on a daily basis.

And what’s with the admin panel?

Even if you are developing a banking app for mobile devices, you can consider getting a web admin panel as it will display a lot of statistics that are more convenient to read on a PC screen. In essence, the admin should be able to control all the instances of the app, that’s why the admin panel should be extra secure. It may include the following:

  • User management features — the administrator needs to be able to view, edit, or delete users’ accounts.
  • Transaction info — provides an administrator with the ability to monitor transactions and ensure that they are processed correctly. These may include features for solving user disputes and issuing refunds.
  • In-app analytics — generates detailed reports on app usage, transaction volumes, user demographics, and other vital metrics that inform decision-making and app improvements.
  • Security and fraud elimination — this can incorporate tools for detecting suspicious actions as well as potential fraud and responding to them.
  • Content management — the administrator needs to be able to add and edit FAQs, articles, and info about upcoming bonuses and updates to provide users with the most up-to-date info.
  • Tools for customer support — the more quickly users get answers to their queries, the more loyal they are. That’s why an admin needs to have tools for communicating with the bank’s clients.

The admin panels usually display plenty of numerical data. That’s why in terms of UI/UX design it’s better to make it minimal. In our opinion, a similar style could match a web admin panel.

Banking app development: How admin panel of the banking app may look like
Here’s an example of a finance dashboard concept that our team designed and posted on Dribbble

Are you planning to engage in banking app development soon? Our team can lead your mobile banking app from idea to release!

Unusual ideas to implement within banking app development

Although the online banking market is growing and people of upcoming generations tend to use it more frequently when you enter this competitive market, you will need a feature that will make you different from your rivals and that will win the hearts of potential users. In this part of the article, we have collected unusual ideas to implement in your banking app and provide you with some inspiration.

Banking and climate awareness

The eco-friendliness trend hasn’t been passed by the banking app development field. Tomorrow Bank provides most of the usual banking facilities while focusing on eco-friendliness and rational consumption. When users make transactions bigger than €10, some part of the sum is used for financing a project dedicated to saving nature in South Africa. This money is used for planting and taking care of spekboom sprouts which are an essential part of the ecosystem. After each user makes a transaction, a calculator counts how big the user’s contribution to this project is.

Banking app development: An eco-friendly calculator from Tomorrow Bank

Extra conveniences for delayed flights

Cool bonuses are another specialty you can implement within banking app development. Revolut banking app encourages users to subscribe to their premium account by providing an extra convenience: giving customers a pass to lounge in the airport in case the flight is delayed. The app user can enter the lounge alone or together with 3 extra people.

Banking app development: A flight delay facility from Revolut banking app
To use the feature, a user needs to register the flight in the app 2 hours before the departure

Providing gifts

The bunq mobile app created a wheel of fortune where users can win valuable prizes by spinning the online wheel. Each day a user receives one opportunity to spin the wheel, to get more of them a user needs to fulfill in-app tasks like inviting a friend to the bunq.

Banking app development: A wheel of fortune from bunq mobile app

Changing the card after the transaction

Curve banking app allows users to change the card they made a transaction with. If you have bought something expensive with the wrong card, for instance, using a card from a joint account with your relatives or a partner, you can change the card from which the money is charged. Users can change cards for transactions made within 120 days from the day they were committed.

Banking app development: Changing cards feature from Curve banking app

Help with credit building

Monese is a neobank that offers the Credit Builder feature, specifically designed to enhance customers’ credit ratings. This unique offering especially benefits younger individuals by providing them with a pathway to establish solid credit profiles, which are crucial when they need to secure financing for significant commitments like mortgages or personal loans.

At a modest fee of £2.50 per month, customers have the opportunity to substantially improve their credit scores within a year. They also have the choice to hasten this progress by taking out £600 loans and repaying them monthly — an appealing option for young adults and newcomers to the UK looking to quickly establish financial credibility.

Targeting your app to specific groups of people

If there are no unique features left that you can implement within banking app development, consider targeting your app to a group of people. Nowadays society is divided into many groups and classes, so you can try to help a certain group of people by providing app features that will specifically target their pain points. You can even create a money app for children.

One example of such an app is Pockit. Pockit focuses on delivering financial services to those without traditional banking access. Migrants, refugees, individuals receiving benefits, and those with poor credit scores all stand to benefit from Pockit’s offerings. The platform offers a way for users to migrate away from cash dependency, enabling them to have their paychecks and benefits directly deposited into their accounts. Additionally, Pockit allows for the facilitation of transfers, the convenience of saving, and the perk of receiving cashback on purchases.

Issues that you may encounter during banking app development

The actions in the financial sphere are restricted by many regulations, which is why several problems connected to this arise. Also, some things are technically hard to implement. Let’s discuss all the issues below.

The need to comply with regulations

Except for creating KYC procedures within your app and providing extra security, your application will need to comply with several law regulations during the banking app development. They are essential for all FinTech apps and organizations. Here we enumerate some of them.

  • GDPR Compliance — The General Data Protection Regulation is a comprehensive data protection law in the EU that sets the standard for data privacy. It requires that banking apps implement data processing protocols, provide transparency to users about how their data is used, and ensure users have control over their personal information.
  • PCI DSS Compliance — The Payment Card Industry Data Security Standard is a set of security standards designed to ensure that all companies that accept, process, store, or transmit credit card information maintain a secure environment.
  • SEPA Compliance — The Single Euro Payments Area aims to simplify bank transfers denominated in euros, making cross-border transfers within Europe as easy as domestic ones. Banking apps offering services in the Eurozone need to be SEPA-compliant.
  • PSD2 Compliance — The Revised Payment Services Directive is an EU directive that regulates payment services and payment service providers throughout the European Union and the European Economic Area. PSD2 compliance means banking apps must enhance user security through Strong Customer Authentication, provide third-party access to financial data with user consent, and ensure transparent communication with users.

The need to connect with API providers

Luckily for developers and their customers, many API providers allow leveraging their processing infrastructure for many online banking services like KYC procedures, card management, cashback, money transfers, and many others.

Plaid and Bond are API providers we have experience working with. The key advantage of using them for banking app development is that they provide solutions that already match all the above-mentioned law regulations, that’s why it’s crucial to use them.

It’s really important to choose the right provider with well-developed features. That’s because banking apps need to be extra secure and have no bugs at all, so users would always feel that their resources and personal data are safe. In case APIs supplied by the provider are raw, they will bring IT engineers much hustle and need to fix loads of bugs, which will result in development delays.

We’d love to add that we have good experience in working with APIs provided by Plaid since their features are well-developed and significantly shorten the development timeline.

Another problem is that sometimes you need to use multiple API providers, and each of them has different terms of use and pricing, and sometimes you will need to contact the customer support of these services manually to be able to use APIs in your app or fix bugs. Unfortunately, this will prolong the banking app development.

App Store’s requirements for apps

Except for law regulations, the banking app development team will need to comply with the list of requirements provided by the App Store and Google Play. These concern app performance, safety, design, and many other issues. One of the points concerns the following:

“Apps used for financial trading, investing, or money management should be submitted by the financial institution performing such services.”

That’s why before embarking on a complicated path of banking app development, you will need to register as a financial organization first.

If you have any questions concerning banking app development, fill in the form and forward them to our team!

Native vs. cross-platform approach: what’s better for banking app development

When developing a banking app, one of the first decisions to make is whether to use a native or cross-platform approach. Native app development involves building separate apps for each operating system, typically using Swift for iOS and Kotlin for Android. This approach can lead to highly optimized apps that take full advantage of each platform’s features and capabilities. In contrast, cross-platform development allows for a single codebase that can run on multiple operating systems, often using frameworks like React Native.

The team at Ronas IT recommends opting for the cross-platform approach for banking app development, specifically using React Native, for several compelling reasons:

  • A shared codebase — React Native allows developers to write code once and deploy it on both iOS and Android platforms, resulting in faster banking app development and easier maintenance. This unified codebase accelerates bringing the app to market and simplifies ongoing support.
  • Availability of development talent — it’s generally easier to build a team around a single cross-platform technology than to hire separate teams for iOS and Android development. With React Native, you can have one cohesive team instead of managing two different teams for Kotlin and Swift.
  • Inclusivity of different user segments — banking apps cater to a wide range of users, each with varying types of smartphones, including older models. React Native is compatible with Android versions starting from 4.1, which means it can provide support for interfaces that work on older smartphones. In markets where your target audience may not always have access to recent devices, this inclusivity is crucial, as it ensures a broader user base can utilize your banking app without barriers.

A step-by-step plan for building a mobile banking app from scratch

Building an app from scratch is a long and complicated process that requires the help of contractors from various spheres, including UI/UX designers, coders, QA testers, and project managers. To add, it’s a strategic process, which means that it’s better not to dive head into development the moment you have an idea, you need to analyze the market first and gather the reliable project team first. Let’s take a closer look at each step of banking app development.

Step 1: Conducting market research

The first step in banking app development is to thoroughly analyze the market. Conduct competitor research to comprehend the services they offer and to pinpoint existing gaps that your app could fill. This is crucial for identifying unique value propositions and understanding customer pain points. Look at industry trends, customer reviews, and feature sets of popular banking apps. By understanding what’s already available, you can identify opportunities where your app can stand out and better meet user needs.

Step 2: Looking for a development team

After aligning your market strategy with business goals, the next step is to assemble your banking app development team. Your options include hiring freelancers, building an in-house team, or partnering with an outsourced development agency.

You’ll need expertise in various areas such as UI/UX design, front-end and back-end development, quality assurance, and project management to oversee the development lifecycle. Platforms like Goodfirms, Clutch, or Design Rush can be invaluable resources for finding reputable professionals and agencies with the specific expertise you need.

When the team is found, you need to start working on the application itself. Let’s tell you how we would handle banking app development at Ronas IT. Our workflow proved to be effective for many projects and app types, that’s why we are eager to share it with you.

Step 3: Discovery phase

At this stage, our analyst who also plays the role of project manager will form the requirements for the app with you and create the list of features of the future app in the format of user stories. At this stage, we will also find out what technologies are to be used in the process of banking app development, as this will directly affect the timeline and cost of development.

Banking app development: User stories help to outline the functionality of the future app and create an estimate
Here’s how the list of user stories with estimates looks in our company

By the end of the stage, our customer will get a detailed and refined list of app features and a cost and timeline estimate of the project. At the same time, the project team and the customer will also form a common vision of the project, so no pieces of work need to be redone in the process of app development.

Step 4: UI/UX design

At this stage of banking app development, we usually create wireframes and a design concept for the future app before creating the full-fledged design. Wireframes help us to think over the UX of the future app, while the design concept shows a few key UI elements, a color palette, and typography. It’s needed to agree on the visual style. These iterations are needed to make sure that our customer gets the design that matches the initial vision.

Banking app development: what wireframes usually look like
Wireframes are skeletons of the future app, they are needed to illustrate the position of the key elements in the interface

Here we’d love to add, that during the UI/UX design stage of the banking app development, it’s really important to care not only about the visual style of the mockup but also about making the interface trustworthy and understandable to users. They should always know when their transaction is being processed when they receive their banking card, or if their account is verified. When it comes to personal finance, every in-app action needs to be extra clear. That’s why in our opinion, it’s better not to work on such a complicated structure with a beginner UI/UX designer and find someone experienced.

Banking app development: users of the app need to always be aware of what happens to their money and account
Leave small tips for users, so they always know what happens to their money and account

Step 5: Coding and building infrastructure

When the UI/UX design is ready, our coders start to create code and build the infrastructure of the app. There are two main approaches to this when it comes to banking app development: building a monolith app or creating a microservice architecture.

Monolith architecture. A monolithic architecture is a traditional model for designing software applications. In this setup, all components of the app — the user interface, business logic, data storage, and more — are tightly integrated into a single, indivisible unit.

This often makes the initial development and deployment faster and simpler, as there are fewer moving parts to manage. Enhancement and bug fixes can be straightforward if the app remains relatively small and manageable. However, as the application grows, a monolithic architecture can become complex and cumbersome, making it difficult to update or scale individual components without affecting the whole system.

Microservice architecture. Microservice architecture breaks down an application into a collection of smaller, interconnected services, each designed to perform a specific business function and communicate via a well-defined interface, such as APIs. Unlike monoliths, these services can be developed, deployed, and scaled independently.

This allows for greater flexibility, as teams can work on different services simultaneously without stepping on each other’s toes. It also enhances the application’s resilience; if one service fails, it doesn’t necessarily bring down the entire app. Microservices are particularly well-suited for the cloud and enable a more efficient iteration and deployment cycle, which can be beneficial in a fast-paced market.

In our opinion, the first approach better matches your goal if you want to create an app with simple functionality, want to prove your idea on the market quickly, and are tight on budget. At the same time, if you are planning to scale your project in the future, it’s better to start off the banking app development with microservice architecture as it’s a more reliable approach.

Depending on project requirements, you will choose an approach during the discovery stage, and our analyst will help you choose what fits your project and budget better.

Step 6: Testing and QA

Another invaluable part of banking app development is quality assurance and testing. This step is not just about finding and fixing bugs; it’s about ensuring the app is secure, user-friendly, and fully functional across different devices and platforms. The more thorough the testing is, the more quickly the app will be reviewed by the app stores.

Step 7: App Store and Google Play review

The launch of any mobile banking app on the App Store for iOS users or Google Play for Android users requires passing their respective review processes. This phase is crucial for ensuring that your app adheres to the guidelines and quality standards set by these platforms before it reaches the public.

The stores usually review the apps over a period of 3 days or 3 weeks, the timeline depends on the load of these services. Our team is aware of all the requirements of both stores, and that’s why we’ll help you to go through this procedure without hassle.

Step 8: Post-release support

The work with the app doesn’t end after the release. You may stay with your team for post-release support and ask developers to fix bugs when they occur or enhance the interface with new features when you gather feedback from the first adopters of your app.

In case you are going to work with an outsourcing team, always ask if it provides post-release support, since you might need help with it after the release.

To wrap up

The landscape of mobile banking is both dynamic and competitive, but with the right strategy, a highly skilled banking app development team, robust testing protocols, and adherence to security standards, startups, and small businesses can rise to meet the growing demand for innovative financial solutions. Another important issue is the features that will make your app outstanding and valuable for users, so don’t forget to think about unique features before launching your project.

Our team can help you at each step of the banking app development. We’ll build a trustworthy interface, develop an infrastructure that will better fit your needs, and successfully launch the app to the stores.

If you are planning to build your mobile banking app soon, you can delegate this task to us!

We use cookies to enable necessary site functionality, to provide the best possible user experience, and to tailor future communications. By using this website, you agree to the use of cookies as outlined in Ronas IT’s online Privacy Policy