According to Statista, the number of digital banking users will reach 3.6 billion in 2024 and is expected to continue growing. There are multiple reasons for this trend, the main ones being the ease of use of online banking and increased accessibility of banking services. In the light of this, it’s safe to say that banking app development is a highly profitable niche worth considering. If you need examples of mobile banking, think of the Bank of America app or Capital One – these are one of the most well-known banking apps.
It is important though to design your app with the latest trends in mind so it remains relevant and competitive. Below, we list the biggest trends that are predicted to shape the future of online banking and how you can incorporate them into your software product.
Main things to consider during banking app development
Before discussing the future trends in mobile banking, let’s first quickly review the main considerations. Since mobile banking design and development is a complex software product that requires rigid security, it is recommended to partner with an experienced software development company that provides high-quality development services. In this way, you can rest assured that the final product will correspond to your business requirements and industry standards and will provide value to customers. Our banking app development company SoftTeco has over 16 years of experience developing robust and enterprise-grade software solutions, including mobile banking design for the fintech and banking industries.
When designing the application, it is important to include all core features but do not overdo the functionality. Too many features might confuse users and negatively affect user experience. Hence, you need to find the balance between usability and value while also maintaining several features as unique selling points. It is also important to pay attention to API development and design to ensure secure and seamless integration with all needed services. In case your current systems are updated, it’s recommended to optimize or replace them so they can support modern tech solutions.
And now, let’s turn our attention to the biggest future trends in mobile banking!
Increased focus on security
The first thing on the list of trends in mobile banking is security. While security has always been a priority in software development, it is especially relevant and critical for software products within the financial industry. We can expect that in the near future, developers of banking apps will pay extra attention to security, ensuring that the apps comply to required regulations and are secured against potential attacks.
The two main regulations to comply with are GDPR and PSD2. Both are aimed at protecting the customers’ data through robust security measures and strong customer authentication. As for security measures, it is recommended that app development follows secure coding standards and uses latest technologies to resist evolving attacks and threats.
Improved personalization
One more thing on the list of mobile banking trends is personalization. Personalization is among the main benefits of mobile banking and in the future, we’ll see even more of it. Before, bank clients received common services and the process of selecting personalized ones was rather cumbersome. With mobile banking, users can easily tailor their banking experience to their preferences and financial goals. Banks, on the other hand, use advanced technologies like Artificial Intelligence to analyze user behavior and propose only relevant products and services.
In the future, banks plan to provide even better personalization through more accurate customer segmentation, addition of new features, and multiple channels to choose from. In this way, customers will be having everything they need in a single banking app and can independently configure the app to best match their needs.
Advanced functionality
Though banking apps are highly popular today, many of them still have limited functionality and offer only essential services. However, developers are working towards making banking apps even more user-centric and feature-rich, so people don’t have to visit physical bank branches for specific services. Some of the things users want to see in their banking apps, according to online surveys, include easy management of recurring transactions, easy and granular configuration of notifications, and categorisation of transactions.
Some of the banks already implement these features in their apps but there is still a vast area for improvement. An important thing to remember though is that the app design should be kept clear and user-centric as the variety of features might easily overload it.
Open banking
Open banking is one of the biggest innovations in the industry and is aimed at making banking services more accessible and diverse. Open banking implies providing control and access to the customers’ data to third-party service providers – think of fintech startups as an example. In this way, a third-party fintech app is integrated with the bank and can provide services, based on the customer data. Banks use open APIs to share the data and third-party providers, in turn, become a single platform for a wide range of services. Such collaboration leads to better customer experience and helps banks adjust their services to evolving market needs.
The biggest consideration for open banking is its security. Since sensitive data is shared between the organizations, it is vital to pay extra attention to the API security and make sure that both banks and third-party providers adhere to security standards of the industry.
Artificial intelligence and smart bots
AI is steadily becoming an integral part of the financial industry due to the numerous benefits that it brings. With the help of AI, banks can automate and optimize a number of processes, including such complex ones as credit scoring or fraud detection. In banking apps, AI is often used for better personalization due to its ability to quickly analyze massive amounts of data. In this way, banks are able to provide more relevant and personalized recommendations, thus significantly improving user experience. We will also most probably see more smart bots that serve as virtual assistants and help users perform certain operations, answer their questions, and even provide advisory services. The use of chatbots can greatly speed up the customer service process since users instantly get the required information and don’t have to wait for the bank employee to respond.
One more use case for AI in banking is the introduction of voice commands to the apps. That means, users can use their voice commands to pay for services or confirm transactions. This adds another layer of user experience and convenience to the overall app usage.
ESG compliance
One more trend that banking apps will most likely follow in the future is ESG compliance. ESG stands for Environmental, Social, and Governance compliance and implies that businesses function in a sustainable and more inclusive manner. For banks, it means that their services should be accessible to everyone, including users with disabilities and elderly users. Another thing for banks to consider is the implementation of an option to check one’s carbon footprint from the purchases via the app. In this way, customers can become more educated about sustainability and can better understand the environmental impact of their purchases.
Since ESG compliance consists of multiple layers, banks should approach it with a well-crafted strategy and plan it gradually. As more and more businesses are becoming more sustainable and accessible, banks should follow by reviewing their current processes and adjusting them correspondingly.
Summing up
The development of a banking application can be highly profitable since online banking is in great demand today. However, banks and financial institutions need to remember that their software products should be user-centric at their core, meaning that every feature should bring value to users. And obviously, security should be implemented at the beginning of the development process to protect your app from potential threats and minimize potential vulnerabilities from the start. We hope our list of future trends in mobile banking was useful and inspired you to design your unique solution!
