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What Are The Benefits of Mobile Banking?

18.11.2022

#App Development
#Fintech

The world is rapidly moving to mobile. Mobile banking opens up new opportunities for bank customers and financial institutions. Postal services, utilities, and, of course, banks already have their applications. Therefore, if you still don’t have it, we advise you to develop your software for a banking system.

Why Should Banks Have an App?

According to the latest research, Bank of America alone had almost 30 million mobile users of its app in 2019. For comparison, in 2012, the number of mobile users barely exceeded 10 million users. These statistics show that more and more people are using smartphones not only as a tool for making calls but also as a work tool and a pocket computer. Therefore, you need a mobile version to avoid losing customers. 

First, you need to understand what advantages mobile banking provides to users of such a service. Their list includes:

  • Quick access and financial management. If you compare how payments were made 10-15 years ago with how financial transactions are made now, you will notice a significant difference. If not so long ago, a person had to be physically present in a bank branch. But now, most financial transactions can be carried out using a website or application. This significantly speeds up both business processes and personal client financial transactions.
  • Mobility. You are no more being tied to a place. Your customers can pay for the necessary goods at home, in the office, and even on the other side of the world on vacation. This, in turn, increases customer loyalty to your bank.
  • Convenient statistics. Modern mobile banking apps independently sort expenses by categories and can give the user reporting in quantitative and percentage terms. A person will see how much money was spent on goods, services, medicine, and other categories of expenses.
  • Advantageous offers. Usually, mobile banking gives a lot of space for remarketing and personal offers for customers. It will be beneficial for users of such an application to participate in such promotions and receive cashback, favorable interest on loans, or other promotions. This will allow the bank to earn additional funds or increase customer loyalty.

And these are only some of the advantages of mobile apps for a bank. But thanks to each of these points, you can attract additional customers to your institution. Also, this tool allows you to make communication with customers more personalized. Remember the analytics of user behavior — you can easily collect this data after creating your company’s mobile banking software.

What Are The Types of Mobile Banking?

This is a rather tricky question because there are different classifications by which we can judge the types of mobile banking. 

Some people distinguish between online banking and mobile banking. The first refers mainly to websites — on such resources, customers can conduct various operations with finances, track the dynamics of their balance on the card, and more. Large financial institutions often choose websites with a long history of existence. However, websites sometimes have a mobile version, which immediately reduces the site’s usability for mobile users. On the other hand, mobile banking mainly involves the presence of an application that the user can install on a smartphone. Such applications often repeat the site’s functionality but are optimized for mobile devices.

Some people divide bank software, taking into account the main functions that this software should perform. But due to the latest development trends, resources often try to make the most multifunctional. Therefore, there is no need to create applications separately for payments, tracking statistics, and other financial transactions.

It is reasonable to divide by the type of clients. For example, it may make sense to develop separate applications for business clients — large companies or legal entities — and individuals. After all, the conditions for these two types of customers are often quite different.

In any case, during the development, first of all, it is worth starting from the needs of your financial institution.

What to Consider When Developing a Mobile Banking Application

Many subtleties should be taken into account when developing software for banking. However, we decided to focus only on the main pillars on which the mobile banking market rests.

  • First of all, we are talking about security. During the development, it is necessary to consider the multi-level protection of customer data. This applies to both data protection on the application side – the level of data storage security — and safety on the client side. At the very least, a modern application should have two-factor authentication, saving customer funds if a person loses his phone.
  • Reliability. The user must ensure that the application they install will meet their requirements, work smoothly and 24/7, and allow them to carry out the necessary financial transactions easily and quickly.
  • Convenience. Make sure that the user flow software for the bank is clear, logical, and reasonable from the point of view of your users. Each button, each section, and each menu should be located in a convenient place for users and contain only the necessary functions. No wonder UI/UX designers of mobile applications are so crucial for modern development.

Where to Order Mobile Banking Software Development?

There are quite a lot of mobile banking software providers on the market, but only some of them guarantee the development of really high-quality software. Magnise offers a highly qualified team of developers, designers, analysts, and other specialists who will create an application for your bank from scratch.

We have experience in mobile banking software development and can develop full-fledged software for a financial company, which will include

  • Client banking service
  • Information management system
  • Well-designed interface
  • Reliable data storage 

And other necessary components of a multifunctional application.

To create the perfect software for banking, we can also develop an MVP, with which we will test the main functions of the leading software and get feedback from real users. Before starting work, we will conduct user testing and consider your company’s needs.

To learn more about the development process, sign up for a consultation. Our experts will meet with you, and you will be able to discuss all the critical needs of your institution, and we will offer solutions for your application.

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