Banking App image

How To Create A Banking App: Steps, Technologies, Pro Tips

Digitization has made it possible for people to have everything at their fingertips, from instant cash transfers to having food delivered to their doorstep.

The banking sector hasn’t been left behind; the industry is fully leveraging the power of technology to enhance customer experience by taking everything digital and making physical banking a fallback. 

Currently, there’s a surge in demand for mobile banking app development as most financial institutions want to make it possible for their customers to transact remotely and at their convenience. 

This article covers everything you need to know about banking app development, from the trends and tech stack required to the development steps and estimated cost. 

Mobile Banking Market Statistics

With extreme competition and high demand in the target sector, trends in mobile banking today demonstrate a lot of ambition, a drive for evolution, and steady growth potential in the future of mobile banking.  

The main highlights of the mobile banking trends to keep in mind include the following: 

  • It’s estimated that 1.9 billion people globally use online banking, which is expected to grow to 2.5 billion by 2024.  
  • According to a recent study, 97% of millennials use mobile banking, while 9 out of 10 Baby Boomers and Gen Xers prefer online banking over the conventional model. 

In 2021, the phone banking app market generated more than $693 billion.

Types of Mobile Applications For Banks

Mobile banking apps can be generally classified into the following categories.

Personal Finance Management Applications

Personal finance management apps allow users to get organized with their finances and give them more control over their financial management goals. These apps are built with various finance management tools and have multiple personalization features that allow users to track withdrawals and deposits and pay bills.

Robo Advisors

These applications offer users investment management features and financial advice online. Robo advisors provide users with financial advice based on algorithms designed by data scientists, investment managers, and financial advisors. 

Bitcoin and Blockchain Apps

These applications verify, process, and facilitate transactions made on distributed ledger systems or blockchains. 

Digital Banks

This software allows users to access banking services through the bank’s platform on a mobile or desktop app. Users can log into their accounts to check their balances, pay bills, and apply for loans. 

Tech Stack for Mobile Banking App Development

When building any customized software in the banking and financial sector, choosing the right tech stack is essential to guarantee the app’s efficiency, stability, and security. 

During mobile app development for banks, developers can utilize the following technology solutions: 

Front-end tech stack

The front-end stack is the technology used to develop the part of the app that users interact with directly. Front-end app development uses a combination of JavaScript, CSS, and HTML. Javascript adds dynamics, such as interactive forms, to the user interface. 

HTML is used to structure page elements like headings and paragraphs, while CSS is used to style the feel and look of documents created using HTML. Developers also use frameworks — pre-built solutions that help developers build an efficient app architecture — during front-end development.

All programming languages support a specific framework; popular frameworks for mobile development include Flutter and Ionic, while those for web development include React and Angular. 

Back-end tech stack

Your application’s back-end or server side is responsible for data processing and storage. Back-end app development uses various programming languages; some of the languages used in the Fintech sector include Ruby, C#, C++, Python, Kotlin, and Java. 


The more users your application has, the greater the load it’ll have. A good database must handle these workloads and offer efficient and fast user query processing. Some popular databases in the Fintech sector include; Oracle, MySQL, MongoDB, and PostgreSQL. 

Besides databases and back-end and front-end technologies, the tech stack for developing a banking app also includes APIs, hosting sites, servers, and any other technologies needed for the collective work of all your app elements.

Steps to Creating a Mobile Banking App

If you’re racking your brain trying to figure out how to build a banking app, here’s a step-by-step guide to all the processes involved: 

Step 1: Conduct a research

This is a crucial stage involving market research to identify competitors, look for alternative solutions available on the market, and learn what’s popular with your target audience. 

Conducting research will help you understand your prospective customers and know which features to include in your app and offer unique solutions to their needs. Research also helps you determine all the strengths and weaknesses of your competitors. 

This information will help you develop an application that’s better than your competitors, thus giving you an edge in the market. 

Step 2: Create a prototype (MVP)

An MVP is a simplified final product version, including the design, structure, and logic. It lacks the aesthetics, stability, and functionality that the final product will have, but it offers developers an effective way to validate the app’s functionality, design, and usability. 

The prototype allows developers to gather feedback from prospective users to know what’s working and what’s not and implement the required changes. 

You can start with wireframing to sketch the landing page’s layout and a sketch of personal dashboards and users’ accounts. You can turn the wireframe into a prototype with a graphic presentation of interface components, design, product, micro-interactions, and color schemes. 

Step 3: Develop the security base

When looking to create a mobile banking app, you must understand that it involves working with sensitive user information. This is why you must have the security base in mind before app development begins. 

Here are some security features you should consider incorporating into your application: 

  • Reliable password: Passwords must first be hashed before they’re stored in a database. 
  • Auto logout: Users who are inactive for more than fifteen minutes should be logged off the system automatically. 
  • Data privacy: Developers should have limited access to user information; all data should be stored in secure sites like Okta and 1Password. 
  • Security certificates: Your mobile banking app should have SSL Pinning to ensure data remains secure. 
  • Secure card details: Implement Very Good Security (VGS) to display customers’ card details.

Step 4: The UI/UX design 

The primary purpose of designing UI/UX is to provide users with a seamless experience when interacting with your app. 

Usability plays a critical role in mobile banking app development as it helps attract clients and provides them with an intuitive experience. Graphic designers usually use a wireframe that UX designers develop into a finalized visual representation. 

Creative specialists use specialized design tools such as Adobe Photoshop, Sketch, and Adobe XD to create app features such as the sign-up form, the home page, and the app icon.

Step 5: Choose a tech stack

Selecting the thigh tech stack is key to launching a high-performance mobile application. 

The following tech stack is used for Android development: 

  • Programming Language: Kotlin
  • Database: SQLite, Realm
  • IDE: Android Studio
  • Tools: Android SDK and Android NDK

For IOS app development, engineers typically utilize the next tech scope:  

  • Programming Language: Swift, Objective C
  • Database: SQLite, Realm, CoreData
  • IDE: XCode
  • Tools: Xcode 

Step 6: Develop the app

This is the most time-consuming step and involves turning the prototype into a live application. Development teams use native programming languages that Android and Apple support to have complete control of all aspects of the application. 

Following an agile approach to development facilitates making changes. Each developed feature is thoroughly tested at every development step to remove bugs and check for vulnerabilities. 

Step 7: Release and maintain

After developing the application, you proceed to launch the product. The most popular application marketplaces— App store and Google Play Market, have various minimum standards that apps must comply with to be listed on their platforms.

Accompany the launch with a market campaign to boost the app’s visibility and increase its adoption. You’ll need to constantly support your app’s flawless functioning to ensure users have the best experience interacting with it. 

Step 9: Improve and update

App development doesn’t stop at launching; you must regularly improve and update it—issue regular updates to enhance user experience and security. Ongoing app development and maintenance ensure users enjoy robust security, better user experience, and new in-demand features.

How Much Does It Cost To Develop A Banking App?

Besides wondering how to create a banking app, most financial institutions always want to know how much it costs to develop a banking app. The overall costs depend on various factors related to software vendors and project requirements. 

In general, these requirements include: 

  • The target site (Android, iOS, hybrid  or cross-platform solution development)
  • The number of features and their complexity
  • The selected tech stack
  • Number of developers 

On average, it costs between $50.000 and $250.000 to develop a basic MVP banking app. The cost of a fully-fledged personalized product with features like budget management, virtual assistant, and chatbot starts at $300.000.

Build Your Custom Banking App With 8allocate

Since most users today don’t want the hassle of physically visiting a bank to transact, banks and Fintech companies must prioritize customer convenience by developing banking apps.  

Developing a banking application is a complex process as it involves processes like creating a personalized user experience, incorporating intuitive features, and high-security compliance. 

Partnering with a professional software development firm will help you build a powerful and flawless solution in the shortest time possible. Get in touch with 8allocate to create a cutting-edge mobile banking app that meets your unique business goals and requirements!

8allocate team will have your back

Don’t wait until someone else will benefit from your project ideas. Realize it now.