26 Best Mobile Banking App Features to Stand Out in the Market

Mobile banking apps have become the heartbeat of modern living, seamlessly orchestrating our personal, professional, and financial worlds with unmatched convenience. This is pretty obvious in today’s tech-savvy scenario. How? We live in a digitally connected world where we rely on mobile devices not just to do our daily tasks but also to manage business and finance.

From paying bills and monitoring credit scores to managing investments and tracking expenses, banking apps have transformed how we interact with our finances, making it faster, easier, and more secure to handle money on the go.

Let’s understand the dominance of mobile banking apps through some impressive figures because numbers don’t lie.

• According to the American Bankers Association, more than 70% of consumers prefer to manage their bank accounts using a mobile app.
• This dominance extends to younger generations, with 74% of millennials and 68% of Gen Z preferring digital banking over traditional bank units.
• Around 79% of the customers think that digital innovation in the banking sector has made banking services easily accessible.
• The rise of mobile banking has led to the closure of over 2,500 bank branches in the US in 2023, as most Americans prefer digital banking.
• 48% of consumers have at least 3 finance apps on their phones.
• According to Statista, the global digital banking market is projected to reach a market volume of $2.09 trillion by 2029, growing at a CAGR of 6.86% from 2024-2029.

These figures are staggering, representing a transformative shift in how users access and manage their economic well-being. Now, the trend of visiting a bank to handle specific needs, like checking balances, transferring funds, depositing checks, etc., has become obsolete. Mobile applications empower users to do all these things and so much more from anywhere, anytime, with unmatched convenience.

So, if you are an emerging startup that has not yet leveraged the power of mobile banking applications or an established enterprise that wishes to expand its existing solution, now is the time to do so and stay ahead of the trend. However, to make a successful application, you need to evaluate the right features that can make your app a big hit in the market and meet evolving customer needs.

In this blog, we will discover the best mobile banking app features that keep users engaged and enhance convenience, keeping your banking apps stand out in the BFSI market. So, let’s dive in!

A Compiled List of the Best Mobile Banking App Features

In today’s digital landscape, banking app features are key to success. These features are the fuel that breathes life into your banking applications. To help you chalk out the best mobile banking app features, we will explore the essential and advanced features that can elevate your mobile banking apps.

From foundational functionalities to cutting-edge advancements, these features testify to how your app can meet evolving users’ expectations and drive engagement.

Essential Features to Include During Mobile Banking App Development

Essential digital banking features form the foundation of a mobile banking app, enabling users to perform everyday banking tasks with ease and security. These core mobile banking features offer a reliable, user-friendly experience that has made mobile banking apps indispensable in managing finances on the go.

1. Account Management

Account management is the bedrock of mobile banking. Today’s users want a seamless, real-time view of their accounts, including balances, recent transactions, and statements. These mobile banking app features are not just about access; they are like your financial control center, which empowers you to manage your accounts without stepping into the bank branch.

2. Fund Transfers

Gone are the days of tedious bank transfers with long processing times. Fund transfer features in mobile banking apps have made the process easy, allowing users to send money to their own accounts or others instantly with just a few taps.

3. Customer Support

When financial issues arise, users need prompt attention to their queries. In-app customer support features like voice chat, call support, or chatbot bridge the gap between users’ questions and real-time solutions, offering quick responses to a wide range of queries and complaints. This top mobile banking feature is like a lifeline for users when things go wrong, ensuring that they are never left in the lurch.

4. Bill Payments

Life gets busy, and bills can easily slip through the cracks. However, bill payment features help users streamline this essential task by allowing them to manage and pay recurring bills directly from the app. They can receive reminders, track due dates, and view payment histories—all of which reduce stress and increase engagement with the app.

Also Read: A Comprehensive Guide to P2P Payment App Development

5. Alerts and Notifications

Alerts and push notifications in an app serve as a financial guardian, ensuring users never miss an important update. From balance alerts to security warnings and upcoming payment reminders, this feature keeps users informed of various account activities in real time.

6. Security and Compliances

Security and compliance are non-negotiable in banking. Essential security measures like biometric techniques, two-factor authentication, and data encryption protect users’ information from potential thefts and threats.

Furthermore, compliance with industry regulations such as PCI-DSS, GDPR, etc., strengthens this security framework, ensuring every transaction and data interaction is protected. These mobile banking security features add additional layers of safety, protecting users from potential fraud by turning their phones into highly secure digital vaults.

7. Mobile Check Deposit

Mobile check deposit has transformed traditional check handling. Instead of visiting a branch, users can snap a photo of their check and submit it via the app. For users with multiple checks or business deposits, such mobile banking features save time and hassle, making it a favorite tool, especially for professionals and busy users who dread the bank queue.

8. Budgeting and Tracking

A budgeting tool goes beyond mere expense tracking; it’s a financial mentor in a user’s pocket that helps analyze spending patterns, set up budget categories, and track progress. This core mobile banking feature empowers users to take control of their financial well-being and stay financially disciplined, all without feeling overwhelmed.

For instance, the tech experts at Appinventiv developed Mudra, a financial management app that offers intuitive budgeting tools. This app enables users to gain a clearer perspective on their finances. With its cutting-edge Internet banking features that simplify the budgeting process, Mudra empowers users to take control of their financial well-being and stay disciplined.

9. Advanced Account Insight

Imagine knowing exactly where every dollar goes—this feature offers just that. These features of mobile banking applications provide deeper insights into users’ spending habits, cash flow, and potential savings. Users appreciate this feature for its transparency and the way it nudges them toward smarter financial habits.

10. Integration with Third-Party Services

The ability to integrate with third-party services like investment platforms, payment gateways, and tax filing apps transforms a banking app into an all-in-one financial hub. Users appreciate having these services within arm’s reach, as it reduces app-switching and creates a centralized ecosystem where everything they need is just a tap away.

Advanced Features of Mobile Banking Apps

Advanced features in mobile banking apps go beyond basic functionality, providing users with enhanced security, personalized experiences, and smart financial tools. These features make banking seamless, secure, and tailored to individual needs, setting modern banking apps apart in a competitive market.

1. Unified Payments Interface (UPI)

UPI works like a digital wallet app, offering a seamless payment platform for instant transactions across bank accounts. By linking accounts through UPI, users can instantly transfer funds, pay bills, and do much more across different banking systems. This feature is especially popular for its speed and ease, eliminating the need to navigate multiple payment gateways.

Forbes Advisor Survey reveals the facts that around 53% of US consumers prefer using digital wallets to traditional payment modes.

Also Read: UPI Payment App Development Cost – A Complete Guide

2. Credit Score Tools

In a world where credit scores can impact everything from loan approvals to job applications, users appreciate the convenience of monitoring and improving their credit. This feature educates users on credit health by providing insights and actionable tips for increasing their scores.

3. AI-Driven Analytics

AI-driven analytics take financial insights to the next level, enabling users to see exactly where their money goes and guiding them in optimizing their savings. By using artificial intelligence and machine learning technologies, the feature breaks down monthly and annual trends, highlights unusual expenses, and even predicts future spending. With AI’s ability to detect nuanced behaviors, users receive personalized recommendations, making it easier than ever to make informed financial choices.

4. QR Code Payment

QR code payments add speed and convenience to everyday transactions. Users can simply scan a merchant’s QR code to make payments instantly. In a world where touchless interactions are gaining popularity, this feature appeals to users for its ease and practicality.

5. Bill-Splitting Functionality

Bill-splitting functionality removes the awkward math from shared expenses, whether for group dinners or vacations. Users can input a bill, divide it among friends, and even send payment reminders—ideal for the “I’ll pay you back later” crowd.

6. Crypto Exchange and Payment

With cryptocurrency gaining momentum worldwide, users are more inclined to trade and spend digital currency. The ability to buy, sell, and pay with crypto in a banking app makes it easy for users to explore this space securely. This feature attracts tech-savvy users and offers banks a way to tap into the expanding crypto market.

You may like to know: Cryptocurrency Exchange App Development Cost

7. Cardless Cash Withdrawal

With the rise of digital banking, cardless cash withdrawal has become a highly sought-after feature. This allows users to withdraw money from ATMs without needing a physical debit or credit card. Instead, they can authenticate their withdrawal via mobile banking apps using QR codes, PINs, or biometric verification (like fingerprints).

8. Peer-to-Peer Lending Integration

This is one of the most loved mobile and online banking features that connects users with peer-to-peer (P2P) lending networks, allowing them to borrow from or lend to other users directly through the app. By adding P2P lending, banks can provide users with alternative financing options and potentially higher returns on their savings.

9. AR for Location-Based Services

Sometimes, users need nothing but a physical branch or an ATM, and the locator feature makes it easy. Using Augmented Reality (AR) in banking apps, users can locate nearby ATMs, bank branches, or relevant offers by scanning their surroundings with their phone camera. This mobile banking application feature uses GPS to enable users to find physical banking resources or personalized offers around them.

10. Personal Financial Management (PFM)

The PFM feature turns a banking app into a virtual financial advisor. This feature analyzes users’ spending patterns, offers personalized financial advice, and nudges them to spend more vigilantly. It is like having a savvy financial guru by your side.

An example of this in action is the Edfundo app, which promotes financial literacy and money management for young users from an early age. Edfundo empowers users with insights into their spending, budgeting tools, and tailored advice, fostering financial responsibility from a young age.

Emerging Mobile Banking App Features, Redefining the FinTech Realm

As technology evolves, many features emerge, redefining mobile banking app development, especially for enterprises aiming to offer an enhanced user experience. Here are a few cutting-edge banking app feature ideas gaining traction in today’s digital BFSI market.

1. Instant Card Issuance and Control

This is one of the most innovative mobile banking features, allowing users to request digital versions of their debit or credit cards instantly within the app. It enables users to manage essential card settings—like spending limits, lock/unlock and PIN reset—right from their mobile devices. With instant card issuance, users can immediately access digital cards for online transactions, even before their physical cards arrive.

2. Robo-Advisory Services

In banking apps, robo-advisors use algorithms to provide personalized investment advice, creating portfolios based on user profiles, goals, and risk tolerance. For businesses, developing a robust robo-advisor platform can elevate their app’s capabilities, offering automated, data-driven advice that makes investing easy and approachable for users who may not have considered it otherwise.

3. Fraud Detection and Financial Crime Alerts

Machine learning algorithms in mobile banking apps analyze transaction data in real-time to detect anomalies, alert users of potential fraud, and safeguard user accounts. This feature adds a layer of security and peace of mind, especially for enterprise-level users who manage substantial financial transactions on the go.

4. Carbon Footprint Tracking

With sustainable banking on the top of mind, this feature calculates the environmental impact of a user’s spending based on their transactions, providing insights into their carbon footprint and enlightening them to make environmentally conscious decisions. This feature demonstrates a commitment to social responsibility for banks and attracts users who prioritize eco-friendly banking options.

5. Identity provider (IdP)

Since banks already leverage blockchain to carry out KYC (Know Your Customer) processes to verify their customers, mobile banking apps can integrate the features that serve as trusted identity providers. This means customers could use their banking apps for authentication across other services.

For example, if a merchant needs proof of address, the banking app could securely generate and share this information, streamlining verification without additional steps.

6. Gamification

Who said banking can’t be fun? The gamification features of online and mobile banking add elements like rewards, points, and milestones to financial activities, making users more engaged to reach savings goals and turning financial management into a rewarding journey.

For instance, customers who use the banking app to make a specified number or value of payment transactions within a given time frame could earn rewards such as points, coupons, or cashback.

Banking App Features Comparison: How Top Mobile Banking Features of the US Stand Against Canada and the UK

While mobile banking apps globally share core functionalities like account management and security, subtle differences arise regarding additional features catering to each market’s needs.

For example, when it comes to “view account balance,” US consumers rank it at No. 3, but for Canadian and UK consumers, it takes the top spot at No. 1. This illustrates a shared preference for basic functionalities and highlights some key regional differences.

Let’s examine these differences in more detail in the table below, highlighting the unique priorities and preferences across these regions.

Real-World Examples of Popular Banking Apps

Here is a look at some top banking features examples of the world’s popular apps, which stand out for their unique functionalities and user-focused design. These mobile banking apps set high standards for digital banking experiences worldwide.

Capital One

Capital One is one of the most popular banking apps in the US, known for its intuitive design and comprehensive banking services. From account management to credit card control, users can perform almost every banking activity right from their mobile.

Key Features

• No fees for foreign transactions
• Accessibility to online and offline banking
• Fund Transfers
• Mobile check deposits
• Credit score tracking

Varo Bank

Varo Bank is a fully digital bank that operates entirely through its mobile app. It provides a range of banking services, including high-yield savings accounts, no-fee checking accounts, and personal loans. The app is designed with simplicity and transparency, offering a seamless user experience for everyday banking and financial planning.

Key Features

• Comprehensive account management
• In-app chat and messaging
• No-fee Checking and Savings Accounts
• Instant Fund Transfers
• Fast access to cash and safe credit-building

Ally Bank

Ally Bank is a well-known mobile banking app that simplifies and secures your financial life. With its single, easy-to-use platform, you can effortlessly manage your bank accounts, credit cards, investments, and auto or home loans — all on the go.

Key Features

• Savings buckets: save money for specific goals and purposes.
• Automatically transfer excess funds into savings
• 24/7 live customer service.
• Send money to friends and family.
• Mobile check deposits.

Expert Advice: While these mobile banking apps are already packed with essential features, they could elevate user experience further by integrating emerging technologies like AI-driven financial insights, interactive financial guides, gamified literacy tools, etc.

These mobile and online banking features are informative, engaging, and user-friendly, empowering customers to make informed financial decisions.

Develop Feature-Rich Banking Applications with Appinventiv

Appinventiv is a leading provider of banking software development services worldwide, developing feature-rich, fully digital banking platforms for businesses of all sizes operating in the BFSI market.

Being awarded as the No. 1 app development firm by Clutch and many other esteemed organizations, we are your trusted tech partner on the journey to achieving banking digital transformation.

We have a proven track record of delivering 3000+ successful solutions for businesses across industries, including banking, finance, and insurance. From robo-advisory solutions and peer-to-peer lending platforms to financial literacy apps, our portfolio of projects demonstrates a diverse range of FinTech applications, highlighting our capabilities in developing and deploying cutting-edge solutions.

Our team of 1600+ tech evangelists uses industry best practices, agile methodologies, the latest technologies, industry-specific compliances, and a customer-centric approach to build award-winning banking apps that exceed expectations.

Ready to bring your vision to life? Contact our skilled banking app developers and propel your business to new heights in the mobile banking era.

FAQs

Q. What are the most important features to include in a mobile banking app?

A. Here is a list of the best mobile banking app features that can make your product a big hit in the market and bring unparalleled success to your business:

• Unified Payments Interface
• Account Management
• Fund Transfers
• Bill Payments
• Alerts and Notifications
• Security Features
• Customer Support
• ATM/Branch Locator
• Budgeting and Tracking
• Integration with Third-Party Services
• Credit Score Tools
• Advanced Account Insight
• Analytics
• Chatbot
• QR code payment
• Bill-splitting functionality
• Mobile check deposit
• Personal financial management
• Crypto exchange and payment
• Gamification

To gain an in-depth understanding of these features of mobile banking applications, please refer to the above blog.

Q. What are the latest trends in mobile application development for banking?

A. The latest tech trends in mobile banking apps are mentioned below:

• AI and ML for personalized user experiences.
• IoT for enhanced cybersecurity to protect valuable users’ information and financial data.
• Voice command, chatbots, and virtual assistants for customer support
• Biometric authentication to prevent financial fraud and strengthen security
• Blockchain technology for immutable, traceable, and transparent transactions.
• Big data analytics for valuable data insights
• Cloud computing to ensure scalability and flexibility in app development.

Q. What is the cost of mobile banking app development?

A. The mobile banking app development cost ranges between $30,000 to $300,000 or more. However, it is just a rough estimate; the actual cost can increase or decrease depending on your unique project requirements, features of a mobile banking application, and several other factors. For instance

• The development cost of a simple banking app with basic features ranges between $30,000 to $100,000.
• Developing a medium-complex app with moderate features costs between $100,000 to $150,000.
• An advanced banking app with cutting-edge features can cost between $150,000 and $300,000 or more.

Discuss your project idea with us to get a more accurate cost and timeline estimation tailored to your needs.

THE AUTHOR

Sudeep Srivastava

Co-Founder and Director