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, businesses need to prioritize retaining the customers they already have.
Keeping existing banking software users satisfied is crucial for long-term success. It’s simply a much more cost-effective approach. But how to 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 banks and institutions incorporate into mobile banking apps 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. While the terms are often used interchangeably, understanding the precise differences between mobile and digital banking is crucial for strategizing in this evolving financial landscape.
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, a mobile banking app must address what really matters to clients 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 in banking 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.
More and more digital banking solution providers now support cryptocurrency transactions. The Velmie digital banking platform offers seamless crypto management, allowing users to track their portfolios, execute transactions, and access real-time market data – all within a single app.
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