5 Trends in Banking Application Development That You Need To Know

Banking Application Development – For majority of history, financial history has remained more or less the same. However, past 100 or so years have completely changed it.

You see, when the modern technologies and computers were first introduced, financial industry was the first one to use them for innovation. That’s how we first got credit cards and internet backing back in 1980s and 1990s.

Now, some 30 years later, in 2023, with industry 4.0, financial industry or what we call is fintech industry undergoing innovative changes again. While there are lots of fintech solutions like loan lending app development, banking application development holds a special place.

With more and more people developing investing in banking application development, they are asking, what are the current trends in banking fintech industry?

Well, if you are one of these people, this blog is for you. Here, we shall be discussing everything related to trends in banking application development. In addition to this, we shall also be discussing how to develop a successful application and reason to invest in this opportunity. But before that, let’s start with an introduction to banking application development.

Introduction To Banking Application Development

What are mobile banking applications? This is one of the first people ask as there are various who are still not familiar to the concept.

Well, as the name suggests, banking applications refers to mobile based solution that allow users to access banking services through their own mobile phone. These mobile apps allow the user to:

• Check account balance
• Transfer money
• Edit/update account information
• Consult bank teller
• Apply for cards
• Apple for financial products

And many more things.

If you have a bank account and a smartphone, there are high chances that you are already using a banking mobile app. One of the most popular example of such apps is Bank of America’s App.

Well, the rest rise in use of these apps is resulting in more and more clients going for banking application development.

Moving on, let’s see why so many people from across the world are investing in these solutions in next section.

Why Create A Banking Application?

Why are so many companies and financial institutions investing in banking application development? And should you?

These are some of the big questions that every potential investor asks when first to this opportunity. Therefore, in this section of the blog, we shall be looking at these reason. They are, as mentioned below:

• Growing integration of fintech solution in our society calls for more and more digital banking solutions, causing growth in mobile banking app development
• When compared to traditional banking system, mobile banking apps are much easier, much more convenient to use, and saves a lot of time. Thus, people prefer using banking app solution rather than going to bank.
• Mobile banking application aren’t just beneficial for customer, but it also saves a lot of money and time on the side of bank. Thus, more and more financial institutions are pushing for banking app development.

With this out of the way, it’s time to discuss the current trends in banking application development. Let’s do it in detail in the section below:

Current Trends in Banking Application Development

Trends are what drives innovation in industry and vice versa. So, what are the digital trends in retail banking app development that are driving growth?

Well, it is a good question because incorporating trends in banking apps can give you an edge over competition while also helping you capture more customers.

Speaking of which, let’s look at the current trends in mobile banking application development. These are, as mentioned below:

Mobile-First Approach

The very first and very obvious current trend in fintech is, mobile first approach.

With the increasing popularity of smartphones, banking applications are now focusing heavily on mobile-first development.

Banks are investing in creating user-friendly and intuitive mobile apps to provide customers with seamless access to their accounts, transactions, and banking services.

Moreover, Mobile apps are being optimized for different platforms (iOS, Android) and devices, ensuring a consistent and responsive user experience.

Enhanced Security Measures

As cybersecurity threats continue to evolve, banking applications are implementing advanced security measures to protect user data and transactions. And that’s what makes this trend a must include in every banking app development.

Moving on, Biometric authentication methods such as fingerprint scanning, facial recognition, and iris scanning are becoming common in banking apps.

Additionally, two-factor authentication (2FA) and encryption techniques are being used to reinforce the security of transactions and user information.

Personalization and AI

Personalization is a mega trend in industry 4.0, and it doesn’t come as a surprise when it is seen in banking application development too.

You see, Banking applications are leveraging artificial intelligence (AI) and machine learning (ML) technologies to offer personalized experiences to users.

AI algorithms analyze customer data and behavior to provide tailored recommendations, financial advice, and product offerings.

Virtual assistants or chatbots are also being integrated into banking apps to provide instant support and assistance to customers, enhancing the overall user experience.

Open Banking and APIs

Open Banking is a concept that promotes the sharing of customer data securely between financial institutions and third-party service providers through Application Programming Interfaces (APIs). This technology is driving force behind mobile payment technology.

Banking application development solutions are adopting APIs to enable seamless integration with other financial services and third-party applications.

This allows customers to access a wide range of services, such as account aggregation, budgeting apps, and payment solutions, from within their banking app.

Blockchain and Cryptocurrencies

Well, well, we all knew that these names were going to show on the list sooner or later. Though it is not one of the latest trends in banking, it is clearly the largest.

Blockchain technology is gaining traction in the banking sector due to its potential to enhance security, transparency, and efficiency in financial transactions.

Some banking applications are exploring the integration of blockchain technology to enable faster and secure cross-border payments, identity verification, and smart contracts.

In addition to this, the rise of cryptocurrencies has prompted banks to consider supporting digital assets within their applications. Thus, allowing customers to manage and trade cryptocurrencies alongside traditional currencies.

So, these are the current trends in banking application development that we are seeing today. With this out of the way, let’s move to next section.

Banking App Development, How To Do It Right?

With banking app development growing so popular, you need to do things differently if you want to stand out.

Now, we know there are lot of questions related to the concept that you want to ask. What is banking app development cost? How long does it take? And so on.

But that’s not important.

Therefore, we shall be focusing on some best practices that you should be doing differently if you want to create a success mobile banking application. These are, as mentioned below:

• Create a tech stack that compliment your app’s goal
• Always cross-check the idea before going in to development
• Choose fintech app developers carefully
• Explore multiple options
• Maintain clear communication with developers, throughout development

These are some of the best practices that you should follow. And with this, we have come to the end of our blog.

Conclusion

With the mobile banking application development growing popular and industry going through yet another revolution, there are a lot of people looking for current trends. Well, they are right in their approach as using these trends can lead to better results. Now, if you want to learn more about the same or create your own app, it’s highly recommended that you consult a banking app development company.

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