Blog / Business / fintech

How to Build an Online Banking App

  • Rating — 4.9 (88 votes)
  • by Elena
  • Updated on September 03, 2020
  • Read —
    6-7 minutes
How to Build an Online Banking App

Hundreds of papers to fill in, long queues, unfriendly personnel, uncomfortable opening hours – all this stuff is a pain of any bank client. Modern people are too busy to waste time on offline banking operations and prefer to manage their finances online.

Wells Fargo WFC +1.64% & Co. agreed to pay $1 billion to settle federal claims of misconduct in its auto and mortgage lending businesses. (Vox)

Another financial tendency is paying via banking card anywhere. Do you remember the last time you paid in cash? It must have been a long time ago, right? Now we are used to taking our credit card only, and leave the huge wallet at home. Cashless payments have gone even further and we can now pay via smartphone using Apple Pay or Google Pay. That means we don’t even need a credit card to buy something.

Banks realize the customer’s needs and try to move online and digitalize their work. But they often suffer from bureaucracy and the work moves not that fast as it should. For that reason, financial startups receive a head start as they can deliver online banking solutions rapidly. They implement the latest technologies and provide users with seamless experience the classic banks can only dream of.

Now, the era of mobile-only banking begins. Wait, what? Mobile only? How is that possible? Read the full article to be informed.

  1. What is online banking?
  2. Types of online banking
  3. How to start using online banking?
  4. What is mobile-only banking?
  5. Features of mobile-only banking app:
  6. App-only bank development tips

What is online banking?

Online banking is a remote service of the common bank. In other words, it’s a website or an app where users can manage their finances and perform different operations. But… there is always a but. Users need to have an account opened in this bank. That means they need to go to the bank and open it offline. However, one visit will be enough and clients can further benefit from using the online version.

So, what can you do with online banking?

  • Check the balance.
  • Utility bills, fines and credits payments.
  • Make transfers to other banking accounts.

online banking software development

Types of online banking

There are various types of online banking, that can be developed to succeed in a prosperous fintech field. For instance:

Mobile banking – allow users to manage their banking accounts via smartphones or tablets using a special banking app. Such apps are available 24/7.

Client-banking – the PC-based service for corporate clients. The banking software is installed on a PC and opens the access to the bank’s system, database, and allows to make payments.

Internet banking app – works directly in a browser and allows users to manage their accounts online.

How to start using online banking?

The first thing you need is to open an account by concluding an agreement with a bank. Upon signing the documents you’ll get the instruction on how to enter your online bank account. Generally, you need to enter your account data such as name, password and a digital banking key that is usually given when signing a contract. It’s recommended to use three-factor authorization for security reasons.  

Download an app or open a bank website. Some banks have already developed their own apps for both iOS and Android, while some only possess a website.

Log-in. At this step, you’ll be asked to enter your personal data and the digital key.

Make a payment. After the successful sign-up, you can use all the functions of the online banking.

Ask for support if needed. Even if the bank doesn’t have the physical offices, there is always a support team at your disposal.

mobile banking app development

What is mobile-only banking?

Now, when people don’t even have time to visit a bank to open an account, the mobile-only banking appeared.

Mobile-only banking doesn’t have the offline offices, hence, it gets rid of such expenses as rent, armed security, office appliances, encashment, etc. The service of mobile-only banking is just an app that is downloaded on user’s smartphone.  

Features of a mobile-only banking app

Low cost of the banking services. As we mentioned above mobile-only banks have fewer expenses thus the fees for their services are lower too.

Grace period. Some mobile banks offer client longer grace period in order to attract new clients.

Higher deposit rates. As well as a grace period, higher rates for deposits are made to get more clients.

Discounts. Mobile-only banks can become partners with bars, shops, cinemas or any other businesses and offer discounts for their clients. These mutual offers are both profitable for two sides.  

Generally, mobile-only banks can serve only individuals, since entities require complex legal documentation to operate with a bank. Nevertheless, having only those clients who use an app-only bank for their personal needs has its own benefits.

For example, digital-only bank customers are usually more financially literate compared to usual bank clients. Studies have shown that people, using banking apps at least once a week are more aware of their finances than those who don’t use such apps.


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banking software development company

App-only bank development tips

Software development of the banking apps requires a skilled team of experts in a fintech field. Nevertheless, as a business owner, you need to understand the rough plan of banking software development and be aware of the process.

For that reason we prepared a short list of must-haves for the banking apps:

Banking APIs. Whether you are going to develop an app for an existing bank or you want to launch a mobile-only banking app, you need to use APIs of the banks. In the first case, they are required to make an app work and make it possible to manage banking accounts. In another case, you should be familiar with banking technologies to build a secure and functional mobile-only banking app.

Security. This is the main and most crucial feature of banking apps since users entrust banks their money and personal information. Banking app must correspond to the local government and have all the needed licenses. Talking about the technological side of the security, consider adding encryption system, electronic signatures support, and tokenization of the data. Don’t allow users to create weak passwords and implement multi-factor authentication.

Clear UI/UX. Though the typical users of online banking are young people who are familiar with the modern technologies, your app design should be comprehensible to anybody.

Personalization. That can be changing the color scheme, personal notifications or personalized money management advice. Modern customers like feeling special, so allow them to do it.

How much may cost the development of the mobile banking app?

World’s leading banks spend approximately $300,000 for the development of mobile banking app from scratch. The middle-sized outsourcing company will charge you for the solution of this kind between $60,000 and $120,000, which can help you gain maximum benefits for a very reasonable price.


Digitalization of business is inevitable and banking sector is not an exception. Banks do all their best to improve the service and retain clients who become more and more demanding. Therefore, if you don’t want to stand behind your competitors, it’s time to develop your own online banking software! Or, you can make a breakthrough in the mobile-only banking sector and launch your own digital bank without boring offices and tons of papers!

Ready to impress your clients?


Elena Elena is the business analyst passionate about everything connected with startups, business ideas, and analytics. She’s aiming to find the solution for every challenge, young companies meet on their way.

Comments (3)

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Sedrick Dugue
Dec 13, 2019 at 7:34 AM

Thanks for sharing those information. I hope other country in America or Caribbean will be able to have online banking

Bo Technologies
Apr 16, 2019 at 1:58 PM

Thank you for shedding light upon how to build an online banking application. Truly when it comes to developing the Banking application security is given top priority.

Sep 21, 2018 at 12:27 PM


Thanks for the wonderful blog. will be waiting to see more blogs like this which is very much useful.


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