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How to Build an Online Banking App

  • Rating — 4.9 (91 votes)
  • by Elena
  • Updated on January 13, 2021
  • Read —
    15-16 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. Here is what statistics shows:

mobile wallets usage

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 a 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.

What is online banking?

online banking app

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.

Speaking about online banking, it is necessary to mention that there are several types of them. Depending on your business needs and requirements, you can choose a solution that will be a perfect fit for you and invest in its development.

Mobile banking
This handy solution allows users to manage their banking accounts via smartphones or tablets using a special banking app. Such apps are available 24/7 which makes them utterly convenient for users. On top of that, such solutions may offer instant support in chats powered by AI.
Client banking
This is the PC-based service for corporate clients. The banking software is installed on a PC and it offers an access to the bank’s system, database, and allows clients to make payments. This banking solution is less convenient than mobile one, since the clients need to have PC or laptop at their hand.
Internet banking
This kind of solution works directly in a web browser and allows users to manage their accounts online. It is perfect for busy people, since they can use internet banking anytime and from any device. All they need is to have a reliable browser and stable Internet connection.
Have your own banking app in mind?
Our specialists can help you shape your idea, write specifications, select necessary tech stack and build an app from scratch.

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.

After you’ve done everything mentioned above, you will be able to proceed with further steps:

  1. 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. So choose the most suitable option for you and get started.
  2. Log-in. At this step, you’ll be asked to enter your personal data and the digital key. After you’ve logged-in, just check all app options, sections, etc. to understand what is located where, and use it effortlessly in the future.
  3. Make a payment. The procedure of paying should be very intuitive, and you will probably see some tips provided within the app.
  4. Ask for support if needed. Even if the bank doesn’t have the physical offices, there is always a support team at your disposal. So if you haven’t figured something out or the payment failed for some reason, don’t hesitate and write to support.
Importance of banking apps
Read about the necessity and importance of creating of banking app in the articles “Why Building Mobile Banking App is Important?” and “Why Should Every Bank Have a Banking App?” on our blog.

Functions of the online banking app

Mobile banking apps gained wide popularity and continue to get high rates because these applications provide a large specter of functions and operations. Customers do no event need to leave their houses and interrupt doing the routine to pay bills, manage the account and credit card, get tips or support from online banking assistants, and many other options. We would like to highlight the main features that should be included in the online bank application.

Peer-to-Peer payment systems
This feature gives the ability to send your money from your account to others` bank account or card personally. There is no need to go to the bank department or look for a terminal to do this operation. You independently manage your funds online.
Voice recognition payments
It is the ability to perform various banking operations with the help of voice assistants like Siri. Of course, this unique feature is available only for online banking. Although, implementing this technology is not much distributed yet in many banks.
Budget and savings tracker
It is a great option for people who use only cards and bank accounts to pay for everything they buy using no cash at all. This feature lets to track your spendings and current balance to control the monthly budget.
It is a great option that provides an excellent customer experience. Depending on the location of the customer, the banking app can show special offers at that place – food and beverage discounts, various coupons to buy something. Moreover, you can pay for these offers with the help of your banking app. Images recognition It is a great feature that makes your bank fully virtual. If you want to create an account or a new card, all you have to do is take a photo of your documents and send it to your bank assistant. the function of image recognition will read all the necessary info about you.
It implies not only typing a common password to your account in the banking app. Mostly you can use Touch-ID or Face-ID instead of putting the password every time you log in. It brings simplicity and a higher level of security. The not really wide-spread option is voice recording logging in. It can give great security but harder to implement into the application.
This option is made to simplify the searching for the nearest ATM or bank office and show the direction to it. Also, the app can include the current info about cash availability, opening hours, etc.

Ready to develop your own banking app?
We can provide you with a free consultation and a quote. Or we can become your development team and build your top-notch solution from scratch.

Great examples of banking  apps

If you are still looking for an inspiration and compare the most popular solutions to make yours even better, then keep reading this block. We have explored an online banking market and discovered the most popular and frequently used solutions. And we’d like to share some info about them with you. That information may help you with the selection of the feature set and app type. So, without further ado, let’s see what apps we’ve found.

Ally Bank


Ally Bank is a mobile-only banking app that provides better conditions like lower commissions and fees. Today this online bank is considered to be the best one on the market as it has 43000 ATMs and offers checking accounts. Also, it provides the function of savings and other common features like paying bills, available transaction history, deposits, ATM locations just like any other bank.

On top of that, you can use your touch-ID to unlock the account without typing a password every time you need to log in. Moreover, Ally Bank provides you with the latest stock market news. It is available for Android as well as iOS. 

Bank of America

banking app

Image source: Bank of America

Bank of America is a large national bank that provides its clients with 16000 ATMs all over the country. As it is national. it has a high level of trust among the clients.  It provides common banking operations as well as great saving modern tools. This app is secure and detects every suspicious action o your account and send a notification. Also, bank of America provides the possibility of cashback for some activities. This app has paid maintenance and the rate is $14 every month.

Capital One

capital one app

Image source: Capital One

Capital One is a highly rated banking application. It provides an excellent customer experience, high-yield savings, and great APY. All your cards from this bank can be held in this application and available for your management 24/7. Capital One app is available to download in Play Market as well as App Store.

Huntington Bank

huntington bank

Image source: Huntington Mobile 

Huntington Bank app responds to all banking requirements – simple to use, excellent customer experience, friendly design, a wide range of functions and provides customer support. It proposes to set notifications about all actions taken on your bank account. Also,  it is not very easy to find the ATM for Huntington Bank.

Wells Fargo

Wells Fargo app

Image source: Wells Fargo Mobile

Wells Fargo is a huge financial facility that has a wide network of 13000 ATMs. It offers low fees on checking accounts that are easily waived if you have a $1,500 minimum daily balance, direct deposits of $500 or more per month. You can easily pay any type of bills using this app, set your Touch-ID, or Face-ID to simplify the logging in process. Also, the Well Fargo app provides quick commands to know the balance,  review transaction history, look at credit card info, etc. 

What is mobile-only banking?

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

Since this solution will be frequently used by people, it should be very convenient and intuitive and offer a set of benefits. Here are some of them:

  • 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. That is why more people prefer these kinds of solutions
  • Grace period. Some mobile banks offer clients a longer grace period in order to attract new clients. This strategy works like a charm since people manage to understand how everything works and what are the real pros of mobile banks.
  • Higher deposit rates. What bank client would not like to get higher rates for deposits? This option is made to expand client base, and increase clients loyalty greatly.
  • 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.

For EIN verification your bank can accept these IRS documents: a 147c letter, Form CP 575, or a completed and returned Form SS-4.

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.

Mobile-only bank development tips

Software development of banking apps requires a skilled team of experts in the fintech field. It is better to outsource the development of you solution since this will help you to save a lot of time and costs. When looking for a team to build your online banking app, make sure that it will have the following specialists:

  • Business Analysts;
  • Web developers;
  • Mobile developers;
  • Designers;
  • System Administrator;
  • Designers;
  • QA engineers;
  • Scrum Master.

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 shortlist of must-have things for the banking apps:

Reliable 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.

High level of security

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

Intuitive and clear UI/UX

Though the typical users of online banking are young people who are familiar with modern technologies, your app design should be comprehensible to anybody. Everything should be visible, readable and easy to comprehend and find. The color scheme should not be aggressive and too bright. The buttons, sections logic, loaders – all these elements are crucial and should be taken care of.

Customization options

That can be changing of the color scheme, setting personal notifications, or providing clients with personalized money management advice. Modern customers like feeling special, so allow them to get what they want. By offering personalized approach you will gain clients loyalty and appreciation.

How much the development may cost?

The development of the mobile banking app is a complex procedure. It includes several important steps that cannot be missed. Among them will be:

  • Discovery phase – when you with the help of Business Analysts will shape your idea, explore the competitors solutions and identify the functional requirements along with the desired feature set.
  • Specifications phase – when all your requirements will be structured, well formulated and written in the document for further usage.
  • Development – on this stag the tech takes will perform coding, integration of various services and APIs and addition of all features of your app.
  • Testing – QA engineers will thoroughly check every little detail starting with the app functionality and performance and ending with its components and integrations connectivity. A manual and automated testing will be used.
  • Design – This is when your app will get its unique look. The designers will take care not only of UI but also of UX of your solution so that every user can enjoy your banking experience.
  • Release – The specialists will prepare the solution to being submitted by the mobile stores. They will gather all info, screenshots and double check if everything is okay with the app performance.

So as you can see mobile banking app development requires a lot of effort and work. Therefore it cannot be too affordable. The middle-sized outsourcing company will charge you for a solution of this kind between $60,000 and $120,000, which can help you gain maximum benefits for a very reasonable price.

The world’s leading banks spend approximately $300,000 on the development of mobile banking app from scratch.

The price seems enormous, however if it exceeds your budget you should not put your banking app idea aside. After all, it is a great option – to build an MVP and test the market. You can add the most important features to your app MVP and see whether the clients like it and what you should keep adding further. It is a great option at affordable price\quality ratio.

Creating a banking app from scratch is a complex and scrupulous process that demands deep expertise in this industry. There are several main steps you need to do initially:

1. Make research on the market

2. Define your target audience

3. Choose the type of app

4. Define the type of monetization

5. Build the business and marketing strategy

Our Business Analyst can help you with solving all these questions and requirements, so feel free to contact us as soon as possible.

The development of a banking app requires the work of a team of specialists where each of them will be responsible for a particular part of building the solution. To make accurate estimations of your projects with its peculiarities, please contact us.
As the financial industry is complex and has a lot of law details and peculiarities, developing the banking app is a long-lasting and complicated process that can take several months. It all depends on the range of functions and features your solution will include.

To wrap it up

The digitalization of business is inevitable and the 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!

Time to develop
Ready to start the development of your own banking app and get a consultation with our specialists?


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.
Alexandra Rostovtseva Being a proficient leader with over 10 years of experience in Project and Product Management, Business Development and Sales, I have strong skills in Negotiations, Crisis, Client and Risk management. Being an outstanding communicator I’m also a good mentor and leader in the tech industry. Experience and expertise are the key foundations in my ability to provide deep insights into the industry and as result I’ve also been published or was a contributor to several tech and business articles.

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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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