The market for banking apps is growing rapidly. That’s a fact. However, this also makes it more competitive. It’s no longer enough to simply draw customers in. To have an advantage over the competition, you need to prioritize retaining the customers you already have. Studies reveal a success rate of 60-70% when selling to existing customers, compared to a mere 5-20% for new ones. Additionally, acquiring new customers can be five times more expensive than retaining existing ones.
The numbers are clear: keeping your existing banking software users satisfied is crucial for long-term success. It’s simply a much more cost-effective approach. But how do you achieve this loyalty? While an exceptional user experience, top-notch customer support, and robust security are crucial, these are the basics the majority of apps already have.
The key lies in providing the functionalities your users truly crave. Which features, then, should you incorporate into your mobile banking app to gain a competitive edge?
How to maximize mobile banking app’s potential?
The landscape is shifting. According to Insider Intelligence’s Mobile Banking survey, 89% of respondents prefer the convenience of mobile banking to traditional in-person visits. What’s more, 40% of consumers are open to switching to a digital-only provider, and experts predict that neobanks (those operating solely online) will have a user base of 377 million users by 2027.
Thus, to thrive in this competitive market, banks need to provide the basics. And also offer something more to capture the hearts and wallets of customers. To truly stand out, your mobile banking app must address what really matters to your users and deliver an experience that keeps them coming back for more.
Enhance security and privacy
Have you ever wondered why some people still avoid mobile banking? Often, the answer comes down to one key concern: security. Almost 74% of customers are concerned about security issues with banking apps. Many users, especially those new to digital banking, might feel a natural sense of anxiety. They may worry about things like: “What if someone hacks into my account and steals my money?”. As an app developer or owner, it’s important to understand these fears. Building trust by providing top-notch security and fiercely protecting user funds should be your top priority.
That’s why it’s critical to conduct regular security audits and updates to address all sorts of vulnerabilities. Employing robust security measures such as encryption, two-factor or multi-factor authentication, is also crucial.
Focus on User Experience (UX)
A user-friendly and intuitive application is no longer something exceptional. A survey conducted by the User Experience Professionals Association (UXPA) found that 75% of customers see UX as highly important when engaging with digital products. Short onboarding, clear design, easy navigation, and fast loading times—this is what users simply expect to get these days. They want to be able to conduct everyday tasks with minimal effort and maximum efficiency. If it’s not possible, they’ll go elsewhere. So, only if a good user experience is provided will they be interested in more advanced options like financial insights or budgeting tools.
Provide top-notch customer support
Building trust and fostering loyalty also go hand-in-hand with providing top-notch customer support. This means offering multiple channels for users to reach help, like phone lines, secure in-app chat, and email options. But it’s not just about accessibility. Support representatives should be knowledgeable, patient, and empowered to resolve issues efficiently.
Some banks started to utilize AI-powered chatbots to handle basic inquiries and offer initial troubleshooting steps. Although still in the early stages, the use of AI chatbots looks promising.
Offer a comprehensive range of features
For a mobile banking app to stand out, it needs to provide a wide array of features. But what exactly should these features entail? Let’s take a look.
Must-have features that will make a mobile banking app stand out
Besides handling fundamental banking functions, modern apps should offer much more. If you aim to differentiate your mobile banking app from competitors right from the start, consider incorporating these features into your application.
Integration with wearable devices
Checking your account balance with a flick of your wrist, or initiating a payment without ever pulling out your phone? As wearable devices, such as smartwatches, are becoming more popular, banks are taking notice. Even though wearable integration in mobile banking is still evolving, several banks already offer some functionalities through their apps. This gives users on-the-go access to their finances, allowing them to easily check balances, receive alerts, and even make transactions right from their devices.
Crypto exchanges and payment
While still uncommon, a highly sought-after feature in mobile banking apps is cryptocurrency integration. With this option, users don’t have to juggle multiple applications to manage their crypto investments and holdings. They can do it directly within their banking app.
Users can keep an eye on their cryptocurrency portfolio, buy and sell different cryptocurrencies easily, and transfer them between accounts—all in real time. Some apps also provide access to useful resources like live market data, price charts, and cryptocurrency news feeds, making managing crypto even easier.
A digital banking pioneer—Monzo, supports cryptocurrencies. While it doesn’t offer direct crypto trading, customers can link their accounts with cryptocurrency exchanges, allowing them to monitor holdings in the Monzo app. The app also facilitates faster payments and direct debits to crypto exchanges for easier fund management.
Automated savings and budgeting tools
Many people don’t have enough savings. A Bankrate report found that 66% of respondents are concerned they couldn’t cover living expenses for a month without their main income. This lack of savings often leads to relying on credit cards, loans, and other debts, which can hurt long-term financial health. That’s why mobile banking apps are focusing on automation features to help users save effortlessly. These features might include automatic transfers to savings accounts, micro-saving options (rounding up spare change), and budgeting tools with personalized goals.
Let’s take Ally Bank’s app as an example. Its “Surprise Savings” tool analyzes spending habits and automatically transfers safe amounts to savings. Varo’s app, on the other hand, employs “micro-saving” by rounding up debit card change and moving that amount into a savings account. Varo’s app also enables customers to choose a percentage of their direct deposit to be moved into their savings account each month.
Increased financial security and transparency
Keeping track of all your subscriptions, apps, services, and accounts can be overwhelming. Mobile banking apps, however, can assist in organizing and monitoring this data for you.
For instance, Wells Fargo’s mobile app offers various features that give customers more control over their bank details and provide security recommendations. Users can easily track recurring payments, linked accounts, and the devices connected to their cards. This level of organization and transparency can significantly boost users’ financial awareness and potentially identify any security vulnerabilities.
Gamification
It’s not a new concept for banks to offer cashback and other incentives for using their debit and credit cards. However, incorporating rewards directly into mobile apps makes earning and redeeming rewards easier than ever.
Bank of America, has a dedicated platform within its app called BankAmeriDeals. This platform lets users browse stores and deals that offer cash back when they pay with a BofA debit or credit card. This way, customers can easily check for rewards on the go and maximize their cash back while shopping. They can also track all their earned rewards right within the app.
U.S. Bank also offers points-based reward systems. It allows customers to redeem points for various options like statement credit, merchandise, gift cards, and even travel—all directly through their mobile app. A simple tap takes users to the rewards section where they can redeem points with ease, no matter where they are.
AI-powered assistants with voice recognition
Many banks have started implementing voice recognition features in their apps for two-way authentication. Some banks have taken it a step further, allowing customers to transfer money using voice commands through AI-powered assistants. Mobile banking apps were among the earliest sectors of fintech to embrace the chance to integrate voice payment technology.
The US Bank offers a Smart Assistant feature in its app, making it possible for users to use voice-activated virtual assistant services. With this feature, you can monitor transactions, analyze spending, and manage business operations simply by speaking commands. For instance, you can easily instruct it to schedule a payment or ask about your past grocery store expenses.
Bill splitting
The best features of mobile banking apps are designed to make your life easier, and this one stands out, especially if you dine out often, share a flat, or travel in larger groups. The bill-splitting feature quickly calculates everyone’s share, eliminating the need for manual math. All you need to do is enter the total amount, and the app takes care of the rest, sending automatic payment requests to selected users. Some apps even let you adjust owed amounts or add additional debts to ensure accurate payments.
For example, several US banks provide this feature to their customers through their iOS mobile apps. These include Chase, Ally, PNC, Citibank, Bank of America, TIAA Bank, TD Bank, and Citizens Bank. They all offer the Split the Bill functionality.
Cardless ATM withdrawals
Cardless ATM payments are definitely worth mentioning when discussing top mobile banking app features. Although being in the early days, some banks have already introduced this feature into their ATMs. Using this feature will reduce or eliminate the need for debit cards in the future, providing a more integrated and user-friendly experience. Consumers can withdraw cash from ATMs without a physical debit card through QR codes and NFC (Near Field Communication).
Major US banks like Chase now offer cardless ATMs, enabling cash withdrawals using NFC technology. You can link your debit card to your mobile wallet with accounts like Chase Total Checking or Chase Secure Banking, then tap your phone at the ATM to withdraw cash. Other banks allow you to schedule withdrawals from their app.
Stricter biometric authentication
Based on a Visa survey, 65% of consumers prefer using biometrics in banking to safeguard their payment data. And 62% of American banking and financial institutions already use biometrics. This indicates a shift away from traditional security methods. Biometric authentication is becoming a standard in banking, as it offers more secure ways to verify identification. This technology uses physical features like face recognition, fingerprint scanning, voice recognition, and retina recognition to authenticate users.
For example, HSBC’s app provides facial and voice recognition as well as biometric fingerprints as optional login methods. The bank considers biometrics the safest way to authenticate customers. From a customer’s point of view, HSBC sees biometrics as a way to eliminate the need to remember security passwords or PINs.
Conclusion
With new mobile banking apps emerging every month, staying relevant can be challenging. While many apps come and go, those with standout features often stand the test of time. If you’re planning to develop a fintech mobile app, consider incorporating the features mentioned above and partner with us at Neontri. Our expertise in banking app development and access to innovative technologies can help your app succeed.
Continue Exploring Now
5 Reasons Why Mobile Banking is Popular
Mobile Banking App Development: Essential Steps For Success
