Mobile Banking App Development in 7 Steps + Features | 2025

Mobile banking app development is the process that financial institutions use to create unique software that serves customers. But users expect sleek design and bulletproof security, so if your bank fails to develop a user-friendly and safe app, you’ll struggle. 

Fortunately, developing your own banking app doesn’t have to be as difficult as passing a course on financial derivatives. We’ll show you how to simplify banking app development by covering the following: 

• What mobile banking app development is and how it’s grown in popularity

• Types of mobile banking apps and their core features

• How to build a banking app in 7 steps 

• Security requirements and technology

• How traditional app development and no-code approaches compare

• Common development challenges and future trends

Disclaimer: Mobile banking app development costs, features, and compliance requirements may change over time. This guide provides general information and should not replace professional advice. Always verify technical specifications with vendors and consult your legal, compliance, and IT teams before building or deploying a mobile banking app.

What Is Banking Mobile App Development?

Banking mobile app development is the process that financial institutions follow to create secure mobile applications, allowing customers to manage their finances from their phones. These apps provide users with convenient and secure access to services such as fund transfers and bill payments.

A banking app requires strong security and compliance standards that go beyond what general apps need. These apps must comply with strict security and regulatory frameworks to safeguard financial data. 

Core security requirements include PCI DSS for payment data and U.S. regulations like FFIEC and the Gramm-Leach-Bliley Act (GLBA). Many fintech apps obtain SOC 2 certification to show secure handling of customer data, though it’s voluntary. Without compliance, financial institutions risk data breaches, fines, and loss of customer trust.

Types of Mobile Banking Apps 

Several types of mobile banking apps are available, each catering to a specific need. Before we discuss building one, let's explore the key types of banking and finance apps:

• Personal Banking Apps: These are the classic apps that come to mind when you hear the term “mobile banking app.” You can check your bank account balances and transaction history, send and receive money, deposit checks remotely, and pay bills. Common personal banking apps are the Bank of America and Wells Fargo apps.

• Business Banking Apps: By offering features like invoice approval and payroll processing, business banking apps let owners manage their company finances. These apps can also help simplify expense tracking and tax preparation. An example is Chase Business. 

• Investment and Trading Apps: These apps let you manage your investment portfolio, buy and sell stocks, bonds, and other assets with just a few screen taps. Investment and trading apps inform users with real-time market data and analysis tools. Examples are Charles Schwab and Robinhood.

• Payment and Transfer Apps: When it comes to sending and receiving money, payment and transfer apps let users send and receive money in seconds. They often integrate with mobile wallets for contactless payments at stores and let users split bills with friends or pay for services instantly. Examples of payment apps include Zelle and Venmo. 

Market Growth & Importance

Mobile banking app development continues to grow as more customers opt to use these tools. According to the American Bankers Association, 48% of Americans prefer using mobile banking apps from their phones or tablets, while only 8% make trips to their local bank branch. 

The same survey found that 96% of users rated their digital banking experience positively, with most describing it as excellent, very good, or good. This shows strong satisfaction and trust in mobile banking app developments across the U.S.

With features like biometric logins, account dashboards, and instant payments, mobile apps give clients both convenience and security. Instead of driving to a branch and waiting in line, users can simply log in on their phone and complete transactions in seconds.

It’s clear that mobile banking apps will remain central to the future of financial services.

Core Features of Banking Mobile Apps

What features should your banking app have? Let’s break down the essentials:

Secure User Authentication

This feature forms the first line of defense for protecting user accounts. Strong authentication methods go beyond simple passwords. 

Here are some common secure user authentication options:

• Multi-factor authentication (MFA): This feature requires a second verification after you enter a username and password. It may require you to confirm a one-time code sent via SMS or email or answer a security question.

• Biometric authentication: Fingerprint scanners and facial recognition technology offer a convenient yet secure way to access the app using unique physical attributes.

Account Management

Mobile banking apps can serve as a command center for users’ financial situations. Here's what a powerful account management system should provide:

• Account balances and transaction history: Real-time access to account balances and detailed transaction history allows users to monitor their spending and income.

• Multiple account viewing: The ability to view all linked accounts, including checking, savings, credit cards, and investment accounts, provides a consolidated view of one's finances.

• Account statements downloading: Offering the option to download account statements in a secure format (like PDF) allows users to maintain offline records for personal budgeting or tax purposes.

Funds Transfer and Bill Payment

The ability to move money in seconds is a core function of mobile banking apps. Here are some key aspects for user convenience:

• Easy transfer between accounts: This feature lets you transfer funds between your own accounts with just a few taps.

• Secure third-party transfers: Sending and receiving money should be a smooth and secure process. This often involves features like payee management and transfer scheduling.

• Bill payment integration: Simplifying bill payments is a major advantage. Users should be able to schedule one-time or recurring payments to various billers directly within the app.

Real-Time Notifications and Alerts

Keeping users informed about their finances is vital. Banking apps that send real-time notifications and alerts update users as changes happen. Here are some key features:

• Transaction alerts: Apps send instant notifications for every debit or credit card transaction immediately after they occur. This feature helps keep records and identify potential fraud. Users can customize the types of alerts they receive.

• Low balance warnings: These alerts notify you when your account balance falls below a certain threshold (which you can set). These help you avoid overdraft fees.

• Account info updates: The app should be able to send notifications about important account information, such as upcoming bill payments or changes to terms and conditions.

Integrated Customer Support and Chatbots

Having access to help and support within the app is crucial. Here are two common options for user assistance:

• Live chat support: The ability to connect with a customer service representative directly through the app allows users to get real-time assistance with questions or issues.

• AI chatbots: Chatbots can provide immediate answers to frequently asked questions and basic troubleshooting steps, offering 24/7 support without waiting on hold.

How to Create a Banking App: Step-by-Step

By offering a banking app, you increase the chances of success for your financial institution, but you need a clear plan to develop your own mobile banking app. Here’s a roadmap outlining the key stages of successful banking mobile app development:

1. Conduct Market Research and Analyze Requirements

First, you’ll need to understand your target audience, their needs, and existing banking app trends. Research your current clients and discover their needs through surveys. Use the results as inputs when you start mapping your app.

Next, conduct a competitor analysis to see which features top banking apps already offer and where they fall short. This helps you spot in-demand capabilities like digital wallets or AI-driven chat support, while also highlighting areas where your app can stand out. 

2. Design the User Interface and User Experience

Here's where the app's look and feel come to life. Use your survey results and competitor analysis to guide your user interface (UI) design. You’re creating this app for your clients, so build a UI that’s visually appealing, intuitive, and easy to navigate. 

User experience (UX) goes beyond aesthetics because it focuses on how users interact with the app. So, make sure you have a well-organized menu with a smooth flow of actions, clear instructions, and quick access to key features.

3. Select the Appropriate Technology Stack

The right development tools and programming approach are essential to building a secure and scalable banking app. If you choose a no-code approach, secure platforms like Blaze.tech offer compliance features that are well-suited for financial services. 

Another option is hiring a development agency or an in-house team to build your app with custom coding. We’ll discuss both methods below.

Factors such as app complexity, target platforms (iOS, Android, or both), and desired features will shape the ideal tech stack. At this stage, security and scalability should remain top priorities, as they pave the way for long-term success in mobile banking app development.

4. Develop Features

At this stage, you’ll develop features such as support messaging, secure payment gateways, biometric authentication, spending analytics, and push notifications. These core capabilities strengthen customer engagement while keeping transactions secure.

These features also help your app run smoothly by enabling essential banking tasks such as account management, transaction history, and money transfers.

5. Implement Security Measures

Security is a top priority in mobile banking app development. This stage requires incorporating security measures such as multi-factor authentication, advanced data encryption, and secure login protocols to protect sensitive customer information.

6. Test and Iterate

Rigorous testing is essential before launch. This stage includes functional testing to confirm features work as intended and performance testing to guarantee stability under heavy loads.

Security testing is equally critical, serving as a safeguard to prevent leaks of sensitive financial data and to ensure compliance with frameworks like PCI DSS and SOC 2.

Test all these areas by running beta tests with a limited user group, which can help identify improvements based on real-world usage. Beta testing also helps refine your app before wider release.

7. Deployment and Ongoing Maintenance

Once testing is complete, you’ll launch your app to the app stores (iOS App Store and Google Play Store) as well as the web for download as a Progressive Web App (PWA). 

However, the work doesn't stop there. You’ll need to schedule ongoing maintenance that addresses user feedback, bug fixes, and security updates. And, you’ll also need to periodically introduce new features to keep the app fresh and engaging.  

You’ll also need to implement ongoing protection measures by executing regular security audits and penetration testing. These practices help identify and eliminate vulnerabilities early.

Tech Stack for Banking Mobile App Development

Your banking app’s tech stack directly affects performance, compliance, and user trust. The tech stack is the collection of frameworks, programming languages, APIs, and security protocols that power your app. Here’s a list of a typical tech stack’s components:

• Frontend frameworks: Cross-platform tools like React Native and Flutter let developers build banking apps for iOS and Android with one codebase. For apps needing maximum performance and security, native development with Swift (iOS) and Kotlin (Android) is also common.

• Reliable backend language support: Technologies such as Node.js (JavaScript runtime), Java, and Python power the logic that runs mobile banking apps. These technologies handle authentication, transaction processing, and business logic.

• Databases and APIs integration: Databases securely store financial data, while APIs enable safe data transfer and system integration. Strong database design, combined with reliable API connections, keeps your app running smoothly.

• Third-party integrations drive functionality: Third-party integrations, such as payment gateways, fraud detection, and KYC services, expand app functionality while staying compliant with PCI DSS and AML standards. These tools extend the functionality of your app while reducing development time.

• Secure and scalable setup: Your app’s setup needs to be both safe and able to grow as more users join. Using cloud platforms with built-in encryption, security standards, and load balancing helps keep banking apps protected, reliable, and fast for everyone.

If you choose a no-code platform, you won’t need to worry about backend coding, frameworks, or third-party libraries because the platforms include them in their system. However, advanced functionality may still require custom-coded APIs or external services.

Compliance and Security Requirements

Compliance and security are crucial to banking mobile app development because customers expect constant protection of their sensitive financial data. Non-compliance can lead to financial and legal penalties. To build consumer trust and remain competitive, you must maintain robust security and privacy standards. 

Here’s a list of required compliance standards and security requirements:

• Regulatory compliance: Regulatory compliance is a cornerstone of banking mobile app development because it enforces strict standards on how sensitive data is managed. Here are the standards banking apps must comply with:

• PCI DSS (Payment Card Industry Data Security Standard): This standard establishes security requirements for handling and processing cardholder data, reducing risks of fraud and theft.

• GDPR (General Data Protection Regulation): GDPR applies to apps that handle data of EU residents, regardless of where the company operates, by requiring strict data privacy controls, collecting and processing user data transparently, with user consent, and the right to be forgotten.

• SOC 2 (System and Organization Controls 2): This standard is a voluntary auditing framework that evaluates how companies manage customer data across five trust principles. They include security, availability, processing integrity, confidentiality, and privacy.

• HIPAA (Health Insurance Portability and Accountability Act): HIPAA applies only if the app handles protected health information (PHI), such as medical billing or insurance-related transactions.

• Data encryption and secure API practices: Strong encryption and secure API practices keep data protected during storage and transfer, making it unreadable to unauthorized parties.

• Authentication and authorization methods: Authentication verifies a user’s identity (e.g., biometrics, Multi-Factor Authentication), while authorization defines what resources or data the verified user can access (e.g., role-based permissions).

Meeting these standards is not a one-time task. Once you develop your banking app, you’ll need to continually test your features to confirm they maintain strong security.

Mobile Banking App Development Costs

Understanding mobile banking app development costs matters because budgets shape security features and long-term scalability. You can select between 2 separate development methods — using traditional coding or building your app with a no-code platform. Here’s a breakdown of both methods:

Traditional Development 

Traditional banking mobile app development relies on hiring engineers, designers, and QA specialists to build from scratch using code. 

This method provides complete customization and scalability but can cost in the $10,000s to over $100,000, especially for apps requiring compliance, advanced security, and cross-platform deployment.

Once you launch your app, ongoing expenses include hosting, bug fixes, and regulatory updates. Traditional builds require dedicated teams to manage servers and publish frequent updates. They’ll also keep your app compliant with evolving standards, but these maintenance services will come at a cost.

No-code Development

No-code mobile banking app development allows teams to create apps faster and at a cheaper cost than traditional builds. Platforms like Blaze offer prebuilt templates, integrations, and compliance-ready features. With just a little training, nearly anyone can create, launch, and maintain their banking app without the need for hiring large technical teams.

However, to build a banking app, you’ll need a compliant platform. These often charge higher subscription fees than regular, non-compliant no-code tools. Maintaining your app will typically involve paying ongoing subscription fees and storage fees. 

Fees typically start at several hundred dollars per month for compliant small-business banking apps and can reach several thousand for enterprise solutions. And, upkeep and maintenance costs are often lower than in traditional development models.

Challenges in Banking Mobile App Development

Building a secure mobile banking app presents unique challenges because financial data is a prime target for cybercrime. Be aware of the following bottlenecks when developing your banking app:

• Security and regulatory compliance: Security remains the top challenge in banking mobile app development because financial data is a prime target for cyberattacks. Adhering to PCI DSS and other regulatory frameworks, while adopting SOC 2 as a best-practice standard, helps apps meet compliance expectations.

• Data privacy: Protecting customer information is central to banking app development. Strong encryption and secure APIs prevent unauthorized access, while transparent privacy policies build confidence in how data is handled.

• Performance and UX expectations: Customers demand fast, reliable apps with an intuitive design. Developers must strike a balance between strong security protocols and a pleasant user experience to avoid losing customers.

• Building user trust and adoption: Trust is critical because customers must feel confident that their accounts and data are protected. Features like biometric login, clear communication, and reliability reinforce credibility and encourage adoption.

Before building, you should determine what you want your app to achieve. By aligning business goals with user needs, you can select the most suitable mobile banking app development approach, minimize risks, and launch a cost-effective build process.

Future Trends in Mobile Banking App Development

In a few years, current banking AI tools will evolve into predictive banking assistants that anticipate customer needs and automate financial decisions such as bill payments or savings transfers.

Blockchain and digital wallets will become increasingly widespread, offering secure and transparent payment options to customers. Expect to see more embedded finance apps, which integrate banking services into non-financial applications, providing rapid access to payments, loans, or investments.

Overall, mobile banking apps of the future will offer more convenience and functionality than those available today. Banks that neglect to develop their own banking apps will most likely struggle.

Build Your Banking Mobile App with Blaze

Want to develop your own mobile banking app? Choose Blaze, a simple, no-code enterprise app builder that supports the rapid development of banking apps or finance software. Here’s how Blaze can help:

• Large library of finance-related templates and elements: Find pre-built app screens and components like loan application portals, risk assessment tools, and reporting dashboards.

• Enterprise security and compliance: Blaze offers 2-factor authentication, advanced encryption, and compliance with HIPAA and SOC 2. 

• Support all the way: Blaze’s implementation team will help you create your banking app and walk you through using the platform. When you finish, the team will help publish your app without any headaches. They’ll also keep it maintained and running smoothly, too.. 

Set up a demo today with the Blaze team.

Frequently Asked Questions

How Much Does Banking Mobile App Development Cost?

Banking mobile app development costs range from $30,000 for basic apps to over $1,000,000 for complex builds. In comparison, no-code banking app development offers predictable, cost-effective pricing, from a few hundred to a few thousand dollars per month based on features and compliance.

How Do You Make a Mobile Banking App Secure?

Implement multiple layers of protection, like multi-factor authentication and advanced data encryption, to make your mobile bank app secure. Compliance with frameworks like PCI DSS for payment data and SOC 2 or FFIEC for broader data security ensures sensitive financial information remains protected and trusted by users.

What Compliance Standards Apply to Banking Mobile Apps?

Mobile banking apps are subject to a complex, overlapping set of legal, regulatory, and industry standards. In the U.S., this includes GLBA (Privacy, Safeguards rules), FFIEC guidance and banking examiner expectations (e.g., authentication, mobile-app risk, layered controls), as well as BSA/AML if the app handles payments or transfers.