Mobile Solutions for Banks

Mobile banking is a system that allows customers of a particular bank to conduct a number of financial transactions via a mobile device or tablet. Such terms as m-banking, m-payments, m-finance mean a set of applications that allows people to use their mobile phones for managing their bank accounts.

Nowadays the banking sector is one of the most dynamically developing in the sphere of new technologies. We can’t imagine communication with a bank without various mobile apps or SMS commands. For developed countries such apps are signs of prestige, for developing world they are tools of accessibility and affordability.

There is no universal form of m-banking: every institution develops a special product and offers a variety of financial functions. As a rule quality mobile apps for banks contain the following features:

- Payments in a few clicks;

- Remittances;

- Currency exchange;

- Blocking a credit card;

- Viewing of bank news and offers;

- Paying for utility services;

- Maps with the closest ATMs and offices;

- Access to support service.

Mobile banking systems allow customers to make transactions through mobile devices with access to the Internet. In the linked article we expand on mobile banking by analyzing how to create a mobile banking app. Using remote banking services you can carry out transactions on your accounts without visiting bank branches! It’s highly profitable not only for customers, but for business owners too. Such way of interaction with clients allows bankers to reduce costs for rent, employees’ salary and so on.

 Trends in Mobile Banking Solutions

The demand for payment services will increase, which includes BNPL services when the purchase price is divided into equal parts and paid within one to two months, peer-to-peer payments.

Audience segmentation

Segmentation is a global fintech trend that will intensify this year. The business strives to offer a narrow audience a solution created specifically for their needs. For example, family budget management services and children's banking.

Artificial intelligence

AI is far from a new technology in banking. It is actively used by banks to optimize business processes and improve the quality of service. For example, customer scoring, financial monitoring, and voice assistants.

But it is assumed that the heyday of technology is yet to come. From scoring, we have already moved on to personalizing services and evaluating emotions. 

ML technologies recognize behavioral patterns in the transactions and clients' interests in the bank's services in a mobile app almost in real-time.

Сybersecurity 

In 2022, the number of cyber attacks on the financial sector has increased. This year, banks will continue to improve the quality of anti-fraud procedures and establish anomalies in customer behavior using AI and related technologies - machine learning, big data collection and processing, and open APIs.

Low-Code

The trend towards Low-Code is becoming more and more noticeable - an approach that makes it possible to release full-featured solutions quickly and with a minimum amount of written code. 

In fact, the mobile banking development process becomes similar to building from a kit, in which all the parts fit together. Gartner predicts that by 2024, more than 65% of applications will be built this way.

M-banking trends 2023

Today, a mobile application is the main means of attracting and retaining users. More than half of customers prefer to use the bank's services through the application. Therefore, the main task of the company is to increase functionality using innovative banking technologies.

Personalization

Gartner analysts expect digital office personalization to grow in 2023. Banks will continue to expand their analytics capabilities to get to know the user better. 

Collecting customer data to create customized offers and improve user experience, transferring interactions with the bank and the functions of a physical office online, and the formation of an ecosystem approach is among the main trends in the segment.

Chatbots

According to the Chatbot Rank 2022 study, the number of requests successfully processed by chatbots has increased by an average of 9-15% per year for each block of user scripts. 

Chatbots still have a reputation as a tool for solving simple problems, and when it comes to a complex issue, the user does not even try to entrust it to a texting robot and immediately asks to switch to a human operator - despite the fact that the bot can quite cope.

In 2023, banks will further develop chatbots that mimic a conversation with a real person and aim at an instant response to a request.

Stories

Banks within their applications form content platforms with informational messages, individual offers, and useful services. The trend will continue to grow in 2023.

Banks promote their products through stories, talk about useful features, and introduce new features. And some successfully integrate not only financial but also non-banking services - air tickets, insurance, tickets for events, sale of goods.

Digital Accessibility

Access to financial services is an important part of adult life. Everyone can face limitations - injury, driving, and a small child in their arms. 

By creating accessible mobile applications, banks cover the needs of half of the country's population. This is not only a social responsibility for the bank, but also a competitive advantage.

Open Banking API

• In the last two years, one of the fintech innovations has been the Open Banking technology. It opens up many opportunities for banks:
• Improves customer engagement and retention rates. It gives you the opportunity to collect and analyze more information about customers and offer them personalized services.
• Deeper scoring allows banks to issue more loans at favorable rates, which can attract an additional audience.

For users of banking services, Open Banking means, first of all, improving the quality of services. For example, speeding up processes and friendlier interfaces, expanding the product line and conveniently finding great deals.

Best Mobile Banking Software

Do you want to bring your bank online? There is a proven software solution. It will provide you with all the classic banking functionality online. We collect the best mobile banking software that will suit your needs.

Sopra Banking Platform

A cloud banking and component-based platform include a broad range of capabilities. No matter whether local or global, large or small, you can choose the components from a broad catalog. You can deploy ready-to-use solutions for sellers. 

FinCell

With FinCell developed by Baltic Amadeus, it's possible for financial institutions to make the transition into the mobile world in just weeks. 

FinCell values collaboration, and works side by side with conventional banks that specialize in everyday banking activities along with functional separation where a particular segment is served by its respective bank. 

Their mission is to deliver a streamlined user experience that incorporates comprehensive pre-designed features empowering customers to effectively manage their financial resources, including balance checkups along with payment processing for multiple services such as card management or loan application.

TimveroOS

TimveroOS is a modern lending operating system that addresses the contemporary needs of banks by effortlessly consolidating and customizing their end-to-end credit business workflows, and the measurable improvements we've made are due in part to utilizing the xAI analytics and financial engineering module. 

Using this platform enables banks to quicken their decision-making process twelvefold and see a ten percent rise in their average loan profits.

NOMADIX

With NOMADIX you can enhance the in-branch experience by removing transaction barriers and creating retail-friendly client interactions. Qualified staff can do the bigger part of branch transactions utilizing a simple teller interface on a device that is integrated with the banking core.

KYC Portal

Complete automation of KYC & due diligence processes in the back-office is what this system strives for, and it saves time due to its feature that allows clients to directly submit all required documents for onboarding. 

The automation of risk calculation by KYCP with pre-defined dynamic parameters ensures instant handling of the application.

RTA

Cash handling security is improved through RTA system which stores all transaction requests in a queue and waits until the requesting associate enters their unique one-time PIN into a PIN pad before dispensing funds.

5 Features that Users Need in Banking Solutions

Mobile banking applications can significantly improve the customer experience in a bank. However, in order to maintain their services at a high level, banks need to constantly update their applications with the latest innovations emerging in the mobile development industry.

1. Advanced Security and Fraud Warnings

Advanced security never goes out of style, especially when it comes to mobile banking apps. A successful banking application requires strong security features that go beyond simply logging in with a PIN or password. 

In addition to security, the subscription process should also be quick and easy. This is why many companies are building multi-factor authentication and biometrics into their applications.

Multi-factor authentication and biometrics are the most popular solutions for banking applications. However, they can also be hacked by hackers. To improve the security of your applications:

• implement encryption and hashing of PIN and password;
• store PINs and passwords on the server instead of the source code;
• use cryptographic key and certificate stores, such as Keychain for iOS and Keystore for Android;
• use two-factor authentication via SMS for payments from outside the application;
• limit the number of login attempts;
• start a new session each time the user logs into the application.

2. Basic banking functions

The CORE Banking System is a unified and centralized back-end platform that enables banks to quickly perform key banking operations such as accessing bank accounts, processing transactions, updating user accounts and other financial records, managing customer relationship management (CRM), and more. 

Many banks have adopted this system because it allows many banking transactions to be completed quickly and can process a large volume of transactions, ensuring the smooth functioning of banking products. 

3. Payments with QR code

QR technology is rapidly spreading across industries, including banking and retail. Now customers can instantly purchase any product they like and do it contactless. 

4. Mobile checking deposits

Traditional banking is gradually becoming a thing of the past. 

The FinTech industry provides banks with portable scanners based on OCR (optical character recognition) technology for mobile checking deposits. 

Using a mobile device camera and handheld scanner in a banking app, users can scan their checks and send documents with a digital image and recognized text to their financial institution. 

The deposit data goes straight into the user's account, and he does not need to spend half a day visiting a bank branch to complete this simple task.

5. Peer-to-peer payments

Peer-to-peer (P2P) payment is a convenient way to transfer funds to someone else's account through a mobile application. 

Using this technology, users do 't need to withdraw cash from an ATM to share it with their family members, they can simply split the bill at a restaurant or pay for any service. 

There are many systems that offer P2P payments, such as PayPal, Venmo, Facebook Pay, and others that make it easier and faster to transfer money between accounts.

P2P payments with blockchain-based cryptocurrencies allow you to quickly transfer funds between bank accounts from different parts of the world at a much lower cost. 

P2P payments using cryptocurrency is a recent innovation that is currently being tested by various finance-related businesses.

FAQs

1. What can mobile banking do?

You can get more out of day-to-day transactions by using mobile banking services anywhere that allow for fund transfers between accounts as well as bill payment options, to check text-based alerts on accounts, statement balance, cash flow, and much more.

2. What are the benefits of mobile banking solutions?

Gone are the days when you have to leave home in order to pay your bills due to the advent of mobile banking, which allows for simple tracking and viewing of all financial transactions in a centralized location. With electronic banking, you can avoid the hassle of physically updating your bank statements.

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

An app with a basic list of features will cost $30,000- $70,000 with a time frame of 3 to 6 months. Medium-complex banking applications with extensive features will cost $70,000-$130,000 with a time frame of 6 to 9 months. This includes everything from adding features to making MVPs and prototypes, etc.So we’re sure that mobile banking systems are one of the most promising directions of the mobile market.