Mobile Banking App Industry Trends That Are Shaping the Future Of Industry

• By Kailash Kaswa
• 14-04-2023
• Mobile Apps

With the techno revolution, the mobile banking app industry has significantly transformed over the years. Mobile banking apps have made the banking process easier, user can perform banking tasks anywhere and at any time. This is the reason behind the popularity of banking app development.

According to Statista, the number of digital banking users in the US is expected to grow to roughly 197 million users in March 2021 and reached almost 217 million by 2025.

This growth can be attributed to the increasing penetration of smartphones and the growing demand for convenient banking services that can be accessed anytime, anywhere. As the industry continues to evolve, various trends are shaping its future, transforming the way people bank and manage their finances.

In this blog, we will explore the latest mobile banking app industry trends that are paving the way for its growth and shaping its future. So, whether you are a banker, a financial expert, or a user, read on to gain insights into the industry stats and trends that are transforming the mobile banking app industry.

So without wasting time, let’s begin!

Brief about the mobile banking app industry

The mobile banking app industry is a rapidly growing sector that has been transforming the traditional banking landscape in recent years. With the advent of smartphones and the increasing demand for convenient and secure banking services, the mobile banking app industry has been experiencing significant growth.

These apps have become an essential tools for customers to manage their finances, transfer funds, pay bills, and monitor their account activity.

With mobile banking apps, there is an increase in the adoption of mobile payments, which have become more popular in recent years. Mobile payment options such as mobile wallets, person-to-person payments, and mobile check deposits have made banking services even more accessible and convenient for users.

In addition, mobile banking apps have become an integral part of the banking industry which enables customers to access banking services securely from their mobile devices. The main source of mobile banking app revenue is driven by various factors such as:

• Transaction fee
• Commissions
• Subscription charges
• Foreign transaction fees
• Account maintenance fees

There are several best online banking apps available in the market like Chase Mobile, Bank of America mobile banking app, Ally mobile, and many more. Let’s discuss the types of mobile banking apps in the next section.

Types Of Mobile Banking Apps

It is essential to know the types of mobile banking apps before starting banking app development and also take care of banking app trends. With this, you can easily pitch your mobile banking app ideas to mobile banking app development companies.

Here are the types of mobile banking apps such as:

Lastly, there are mobile banking future trends that are affecting the mobile banking industry let's look at them in the next section.

How to enhance the security feature of the mobile banking app?

With the techno revolution in the mobile banking app industry, there is an increase in security issues in online banking. To enhance the security feature of a mobile banking app, it is essential to protect the sensitive financial information of the users.

Here are some steps that can be taken to enhance the security of a mobile banking app:

• Implement strong authentication

For enhancing the security feature integrates two-factor authentication (2FA) or biometric authentication like fingerprint or facial recognition can be added to the login. The process to ensure that only authorized users can access the app.

• Use encryption

The data transmission between the app and the server should be encrypted to prevent unauthorized access to sensitive information. You can find this security feature in every mobile app.

• Monitor for fraud

Another great way to enhance the security features of the app is to integrate fraud detection tools in mobile payment technology. With these tools, you can identify unusual account activity and alert users of suspicious transactions.

• Regularly update the app

Regularly updating the app with the latest security patches and bug fixes to prevent security vulnerabilities. For this, you have to keep the app updated with the latest technology features for updating.

• Conduct security audits

Another way to enhance the security of mobile banking apps is regularly conducting security audits to identify and address any potential security weaknesses in the app.

• Limit access to sensitive information

With limited access to sensitive information, restrict access to sensitive information such as account balances and transaction history to authorized users only.

• Educate users

Educating users on the importance of security and encouraging them to create strong passwords, and avoid sharing their login credentials. And also report any suspicious activity.

By implementing these security measures, you don’t have to worry about security issues in online banking. All you have to do is hire expert mobile banking app developers so that they can enhance the security of the app and protect users' financial information.

How do trends affect the Mobile banking industry?

With the revolution in mobile payment technology, mobile banking trends have emerged and impacted the mobile banking industry, as they shape consumer behavior and expectations.

Here are some ways that trends can affect the mobile banking industry:

• Increased adoption of mobile banking

As more consumers adopt mobile banking, the future of the mobile banking industry will need to keep evolving with demand and ensure that their apps and services are user-friendly and secure. This may require investment in new technology and infrastructure.

• Changing consumer expectations

Consumers are increasingly expecting more personalized and intuitive mobile banking experiences. This means that mobile banking apps will need to offer features such as predictive analytics, chatbots, and biometric authentication to keep up with consumer demands.

• The emergence of new technologies

With emerging technologies, there is an increase in security issues in online banking. This made blockchain, AI, and the Internet of Things (IoT) likely to have a significant impact on the mobile banking industry. For example, blockchain technology can be used to improve security and reduce transaction times, while AI can be used to offer personalized financial advice and recommendations.

• Increased competition

As more companies enter the mobile banking space, competition will increase. This will put pressure on mobile banking providers to offer more innovative and competitive mobile app development services in London, which could lead to further investment in technology and infrastructure.

• Regulatory changes

Changes in regulatory requirements can also have an impact on the mobile banking industry. For example, new regulations around data privacy and security may require mobile banking providers to make changes to their apps and services to ensure compliance.

Mobile Banking App Industry Trends That Are Shaping the Future Of Industry

When you start custom fintech app development, trends have a significant impact on the mobile banking industry as it provides better mobile banking services.

Here are the mobile banking app industry trends that are shaping the future of the industry includes:

• Biometric Authentication:

Many mobile banking apps now offer biometric authentication options such as facial recognition or fingerprint scanning, providing customers with a more secure and convenient way to access their accounts.

• Personalization

Mobile banking apps are becoming more personalized, with customized features that cater to individual customer needs. This includes personalized alerts, notifications, and budgeting tools.

• AI and Chatbots

The integration of AI and chatbots is becoming increasingly common in mobile banking apps. These tools can assist customers with tasks such as account inquiries and money transfers, providing a more efficient and seamless banking experience.

• Mobile Payments

Mobile banking apps are also enabling customers to make payments directly from their mobile devices. This includes person-to-person (P2P) payments and mobile payment options such as Apple Pay and Google Wallet.

• More Robust Security Features

With the rise of cyber threats, mobile banking apps are implementing more robust security features to protect customer data. This includes two-factor authentication and real-time fraud detection.

• Voice Banking

Mobile banking apps are now integrating voice assistants to enhance customer experience. With voice banking, customers can use voice commands to check their account balances, transfer funds, and pay bills.

• Augmented Reality (AR)

Some mobile banking apps are using AR to provide customers with a more immersive banking experience. For example, customers can use their phones to scan a check and deposit it into their accounts.

• Gamification

Mobile banking apps are using gamification techniques to encourage customers to save money and reach their financial goals. This includes rewards, badges, and challenges.

How much does it cost to build a mobile banking app?

The mobile banking app development cost can vary widely depending on several factors such as the app's features, design complexity, development platform, and geographic location of the development team.

Typically, building a mobile banking app from scratch can cost anywhere from $50,000 to $100,000, while a more advanced one can cost $500,000 or more.

However, it's essential to note that creating a robust and secure mobile banking app requires a significant investment of time and resources to ensure it meets industry standards and regulations.

To get a better estimate of the cost of building a mobile banking app, it's recommended to consult with a reputable mobile app development company or freelancer and provide them with a detailed project brief outlining the app's specifications and requirements. The development team can then provide a more accurate estimate of the total cost and time needed to build the app.

Conclusion

The mobile banking industry is continuously evolving and experiencing significant growth due to the increasing demand for convenient and secure banking services. With the emergence of new technologies, changing consumer expectations, and regulatory changes, it's vital for mobile banking providers to stay up-to-date with the latest trends to remain competitive in the market.

Custom fintech app development and mobile app development services are crucial to creating innovative and user-friendly mobile banking apps. They can help mobile banking providers meet the changing needs of consumers and ensure that their apps remain secure and up-to-date with the latest industry standards. We hope with this blog, you can start your mobile banking app development.

FAQs

• What are the latest trends in the mobile banking app industry?

The latest trends in the mobile banking app industry include the integration of artificial intelligence and chatbots, the adoption of biometric authentication, the use of blockchain technology, and the expansion of mobile payments and digital wallets.

• How are mobile banking apps changing the way we manage our finances?

Mobile banking apps are changing the way we manage our finances by providing convenient, on-the-go access to banking services, enabling us to track our spending, transfer money, pay bills, and manage our accounts from our smartphones.

• What steps are mobile banking app developers taking to improve the security of their apps?

Mobile banking app developers are implementing measures such as:

1. two-factor authentication
2. biometric authentication
3. encryption
4. real-time fraud monitoring
5. conducting regular security audits

• How much does it cost to build a mobile banking app?

The cost of building a mobile banking app depends on various factors, such as complexity, features, platform, and location. A basic app can cost $50,000 to $100,000, while a more advanced one can cost $500,000 or more.