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Must-Have Features of Online Banking Apps

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Must-Have Features of Online Banking Apps

Published: 2022/11/28

Updated 16/08/2023

9 min read

Nowadays, people’s lives revolve around their smartphones. By the end of 2022, there will be approximately 6.5 billion smartphone subscriptions  worldwide, according to Statista. Mobile devices are used in everyday activities, from communicating with friends and following the news to managing finances. 

Thanks to recent advancements in digital technology, online banking is experiencing an upsurge in popularity. Financial institutions are rapidly transforming their offerings to keep up as online customers demand more efficient online banking services with financial software services. 

Read more: What is branchless banking?

Mobile banking provides, what traditional banking can’t

Banking apps are great for those who can’t commute to the bank during traditional business hours. When choosing a mobile banking application, customers should choose among the most-reputable banks to ensure that the app is safe and has compatible features. 

What online banking features give customers

Online banking apps give customers the ability to: 

  • check their account balances  
  • pay bills and transfer money  
  • receive text alerts on their mobile devices 

Online banking apps allow you to bank from anywhere

Most people today are constantly on the go and rarely have time to go into a physical bank branch to conduct their banking activities. Banking online, however, offers a great deal of convenience and flexibility. 

Read more: AI in banking

Banking on the go

Digitization means anyone with a smartphone or tablet can bank on the go. This means that customers can: 

  • access their bank account online 
  • open a savings account online 
  • receive account alerts 
  • make mobile check deposits obtain fraud alerts 

Basic requirements for an effective online banking app

An online account is easy to sign up for and brings numerous benefits. As well, banks are happy to provide services to online banking customers, as it saves them money in the long run. Though  features will vary, certain factors make for an excellent banking app. 

What makes an app widely accepted?

For a banking app to deliver a rewarding experience, it must meet the following criteria: 

  • Easy sign-up process: The last thing you want is for customers to get frustrated with your sign-up process and give up before they even start using your app. Make sure your sign-up process is quick and seamless, with minimal required information. 
  • Intuitive design: Your app should be clean and straightforward, with an intuitive interface that users can easily navigate. Everything should be easy to find, and all online banking features should be clearly labeled.
  • Dependable security: Security features are essential to finance apps to protect against unauthorized transactions. 

The essential features of banking apps

One of the great things about online banking apps is that they are incredibly convenient. Along with convenience, every successful mobile banking app has a few must-have online banking features. 

Read also: Custom Apps Development

Apps must provide the ability to track transaction history to work effectively. Customers must be able to log in to their bank account and transfer money to their friends and family members at times of need. 

Standard features for managing your finances

Some of the must-have features of banking apps: 

  • Account Balances: The ability to check your transaction history and account balances without logging in to your online banking website is a must-have feature of any good online banking app. 
  • Money Transfers: The ability to make transactions between accounts. 
  • Bill Payments: Paying bills directly from your app is a huge time-saver and a great way to avoid late payments. 
  • Financial Management: Many online banking apps help you track your spending, and budget better and stay on top of your finances. These tools can be beneficial for corporate customers.

What else should you look for in a banking app?

With the increasing pace of people’s daily lives, it’s no wonder banks are increasingly offering mobile apps that make it easier to do banking on the go. But with so many different apps on the market, it can take time to know which one is right for you. 

Read more: Omnichannel banking: definition, trends and benefits

Look for an app that offers more than the minimum

Online banking apps should always offer standard features to make managing finances more accessible, but when choosing an app, customers should leverage additional features that provide added convenience. 

Additional online banking features

  • Mobile check deposit: Making mobile deposits via your smartphone is highly convenient. No more having to travel to the bank to deposit a check. 
  • Push notifications: Stay on top of your finances by setting up alerts for low balances, new transactions and upcoming bills. 
  • Fingerprint login: This relatively new feature is quickly becoming standard on many smartphones. With a fingerprint login, you can quickly and easily access your account without having to remember a long password. 
  • ATM locator: Customers use this tool to find ATMs worldwide.  By simply typing in their location, they can obtain a complete list of all nearby ATMs. 
  • QR Code Payments: A QR code is scanned from a mobile app to complete a transaction using a contactless QR code payment method. This is an alternative to employing a payment terminal to conduct an electronic money transfer at the point of sale. 
  • Peer-to-peer payments: P2P payments let you send money directly to another person. P2P payment systems — also known as money transfer apps like Venmo, PayPal and Cash App — give users the ability to send and receive money from their mobile devices through a linked bank account or card. 
  • Intelligent Chatbots: Chatbots are conversational technologies that effectively complete repetitive activities. They are popular because they enable people to complete certain chores quickly, freeing up time for high-level, strategic and exciting activities that call for human qualities that robots cannot copy. 

Utilize as many security measures as possible

There are a few key features you should look for in an app. First and foremost, consider your needs. What type of account do you have? Which feature will you use regularly? What services do you use most often? Once you know what you need, research the security measures in place for each app. 

Various tools and security features available:

  • Encryption: Apps should encrypt all information sent between a customer’s device and a bank’s servers. 
  • Biometric authentication: Mobile banking apps now include fingerprint authentication. Facial and voice recognition technologies are additional biometric security measures. These verification techniques are simple to use and difficult for hackers to copy. 
  • Firewalls: Block unwanted access and halt traffic from dubious internet sources by screening data entering and leaving computer networks. 
  • Multi-factor authentication: Features like multi-factor authentication are needed to protect customers when they log into a mobile device over an unsecured network or public Wi-Fi to transfer funds. 

Pros and cons of online banking apps

Like every other element of our lives, online banking offers advantages and disadvantages 

Benefits of online banking apps

Online banking enables customers to do everything from getting quick loans to paying utility bills on the fly. Other benefits include: 

  • Accessibility: One of the factors contributing to the use of internet banking is its accessibility. Customers can send, receive and check their funds 24 hours a day. 
  • Control: You can manage your accounts and funds online. It is simple to automate payments, reverse them, check bank statements and validate payments on the go. 
  • Features: Both individuals and companies can benefit from features on banking websites and mobile applications. At a physical branch, some of these features are not readily available. 

Who doesn’t enjoy quick services? Instead of standing in line and filling out lengthy paperwork, online banking gives you the benefit of quick financial services. You can seamlessly access online banking services like loans, loan repayment and more. 

Drawbacks of online banking apps

Unfortunately, like all tools, there are a few distinctive drawbacks. These include: 

  • Network issues: As the name implies, this banking depends heavily on network providers, so a network outage might prevent transactions from being completed. 
  • Security: There is a chance that unauthorized individuals could access your banking information, hack into your account and steal your money. Because of this, online banks are careful to invest in security measures that guarantee their customers’ funds are secure at all times. 

Why online banking apps are a must

Online banking offers a lot to its users. Knowing which app to use can be challenging, with many different features offering diverse functionalities. Customers want apps with the best online banking offers. Uncertain customers look for apps backed by reputable banks with a good customer service record. 

When developing an online banking app, businesses should offer secure platforms with multiple features. To be successful in this aim, they must find a strong software development partner to build competent tech teams capable of taking any and all engineering steps. 

Teaming up with an experienced and skilled financial software development partner is the fastest way to grow your fintech business. If you want to learn more about this kind of partnership, or discuss your situation, use this contact form – our experts are happy to help you find the best solutions.

FAQ section

What is the difference between mobile banking and online banking?

The main difference between mobile banking and online banking is connected to the devices you use, both in terms of services and accessibility. Online banking involves utilizing a bank’s website through a desktop or laptop computer. By accessing their accounts via a web browser, users can perform various tasks such as checking their account balances, transferring funds, and paying bills online. Meanwhile, mobile banking refers to using smartphones or tablets and dedicated mobile banking applications provided by banks. These apps offer similar functionalities to online banking but are designed to be used on smaller screens and touch interfaces. With mobile banking, users can effortlessly access their accounts, make transactions, and even deposit checks, which makes banking more convenient and accessible, particularly on the go.

How do features of mobile banking compare to traditional banking methods?

Mobile banking offers several more features than traditional banking methods. Firstly, it provides unparalleled convenience and saves time, since users can access their accounts, transfer funds, and pay bills, without needing to visit physical bank branches. Moreover, mobile banking apps often come with advanced security features such as biometric authentication and real-time transaction notifications that enhance the overall safety of financial activities. Additionally, mobile banking provides a faster and more efficient way to manage your accounts and perform instant transactions compared to traditional banking methods, which often involve paperwork and waiting in long queues. Although conventional banking methods still have their benefits, the speed, accessibility, and security of mobile banking make it a preferred choice for many modern consumers.

Are there any unique features of mobile banking that aren’t available in traditional banking?

Mobile banking introduces several unique features not available in traditional banking methods. What are they? Let’s start with mobile wallet integration, which enables users to store payment information, make contactless payments, and use their smartphones for online purchases. Security is taken to another level with biometric authentication methods such as fingerprint and facial recognition. With location-based services that utilize GPS, mobile banking users can find nearby ATMs. If switched on, real-time notifications allow for instant push notifications about every transaction activity, thus raising a user’s awareness about all operations with their account. In specific markets, clients can take advantage of mobile check deposits and take photos of paper checks using the mobile app and deposit them digitally. With all existing and evolving features, mobile banking has become the pillar of the modern economy.

How do online banking features cater to global travelers or those living abroad?

Online banking features cater to global travelers and individuals living abroad by offering real-time access to accounts and transactions from anywhere worldwide and enabling travelers to monitor their finances, pay bills, and transfer funds remotely. What exactly are some of those features? Solutions like multi-currency support allow users to conduct transactions in different currencies, a critical solution when traveling abroad. With the ability to transfer funds globally, users can wire money between accounts while traveling. It’s also worth mentioning that online customer support enables travelers to resolve banking issues anywhere and anytime. In short, online banking features empower users to take advantage of the modern solutions provided by the digital age.

About the authorSoftware Mind

Software Mind provides companies with autonomous development teams who manage software life cycles from ideation to release and beyond. For over 20 years we’ve been enriching organizations with the talent they need to boost scalability, drive dynamic growth and bring disruptive ideas to life. Our top-notch engineering teams combine ownership with leading technologies, including cloud, AI, data science and embedded software to accelerate digital transformations and boost software delivery. A culture that embraces openness, craves more and acts with respect enables our bold and passionate people to create evolutive solutions that support scale-ups, unicorns and enterprise-level companies around the world. 

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