7 Must-Have Mobile Banking App Features

7 Integrated Mobile App Features

#1 Robust Security

Cybersecurity is recognized as one of the main considerations when it comes to choosing a digital product. And it’s not a surprise that financial institutions are among the most targeted for cyberattacks. According to Contrast Security, more than 60% of global financial organizations with at least $5 billion in assets were hit by a range of cyber attacks over the past year. In terms of fraud trends, these are the most popular in the industry:

There are some important steps that banks and financial institutions can take to ensure that their systems are protected against the aforementioned security threats:

1. Multi-factor Authentication. The implementation of multi-factor authentication, for example, a combination of passwords, security tokens, and biometric authentication, will help banks to ensure that only authorized users can access sensitive financial data.
2. Encryption. Encryption of stored on servers and transmitted data also helps to prevent data breaches and unauthorized access.
3. Regular Assessment and Updating Security Protocols. Banks must regularly assess their security protocols and conduct periodic security audits to identify vulnerabilities in their systems.
4. Intrusion Detection and Prevention Systems. Intrusion detection and prevention systems allow banks to monitor their networks for suspicious activity and block any attempts at unauthorized access.
5. Employee Training. Banks should regularly invest in employee training on how to identify phishing emails, protect sensitive data, and how use security software.

#2 AI-Powered Chatbots

Chatbots have been around for quite a few years now. Today, more and more banks and credit unions are deploying AI-powered virtual assistants to automate tasks that used to be completed by talking to a human. According to Forbes, 70% of millennials report positive chatbot experiences and 69% of consumers prefer to use chatbots for the speed at which they can communicate with a brand, according to Salesforce.

Banking chatbots help to provide a faster and more accurate service compared to human operators. They offer immediate help during non-banking hours, save time, reduce bank employees’ engagement in administrative and mundane query resolution, and process transactions in a matter of seconds.

One of the most famous and most-accessed virtual banking assistants, Erica of Bank of America, has already helped more than 32 million customers with over 1 billion interactions. Erica leverages NLP and its predictive nature can anticipate why customers are reaching out. It also gives customers an ability to switch to a human assistant, letting the agent use information previously collected by Erica. which leads to even more personalized experience.

#3 Peer-to-Peer Mobile Payments

P2P systems facilitate money transfers between individuals by making them fast, convenient, and secure. The technology allows transferring funds directly from one person’s banking or checking account, credit or debit card, or app to another person within minutes.

Some time ago, banks fell short of instant payments. Users had to wait for a few days to transfer money and therefore frequently opted for P2P platforms such as Venmo, CashApp, and Zelle. Today, integration with such platforms is one of the most popular features of mobile banking that makes it easier than ever for individuals to send and receive money without having to use traditional payment methods.

For example, the Chase mobile app and Ally mobile banking allow their customers to send and receive money with Zelle, a popular P2P payment service while Capital One mobile offers P2P payments through its own payment service called "Capital One P2P Payments."

#4 Personal Financial Assistants

Modern banking apps are not just about making payments. With recent innovations in fintech, they have turned into a sort of personal financial assistant always available in users’ pockets.

Financial obligations that people regularly have to make now are delegated to mobile banking apps. For example, users can allow automatic payments for recurring bills such as electricity, water, loans, etc.  They can monitor their credit score and report, receiving an alert about changes and personalized advice for improving credit.

Apps also show detailed information and analyze monthly income and spending, helping users to track their funds and better manage their monthly budgets and can even send notifications when a user exceeds their budget or personalized suggestions for reducing expenses.

#5 Automated Saving Tools

Many households in the US cannot absorb even small financial shocks. According to the Federal Reserve Board, 4 in 10 cannot come up with $400 for an unexpected expense.

Therefore, some banks already offer new mobile banking features to help their customers to save up or allow integration with popular saving apps. Such tools automatically move money into saving accounts at regular time or spending intervals. An application estimates how much money a user can afford to save and moves it into a separate savings account. Usually, it rounds up the purchases to the nearest dollar and automatically puts the change into a savings account.                

#6 QR Code Payments

Another one of the best banking app features to incorporate in your software is QR code payments. Quick response type of barcode was created in 1994 though gained popularity in the 2000s when camera phones became more widespread. A few years ago, mobile platforms enabled their users to scan QR codes with the default camera apps which led to the QR use explosion. 

Although QR codes are not yet as widely used in Europe and the US as in China, the increasing need of cashless payments and the growing popularity of such apps as Venmo and Cash App may soon change the situation. According to Juniper Research, the number of QR code payment users is predicted to exceed 2.2 billion by 2025 while the US market is expected to experience a growth of 240% in user numbers. 

Here are some examples of how QR codes can be used in banking apps:

1. Payment Processing. QR codes can be used to facilitate payments between customers and merchants. For example, a customer can scan a QR code provided by a merchant to make a payment using their banking app.
2. Account Management. Users can get quick and easy access to their account information.
3. ATM Transactions. By scanning a QR code on an ATM screen, users can initiate a withdrawal or deposit without the need to insert their ATM card.
4. Loan Applications. A bank can provide customers with a QR code that, when scanned, takes them to a loan application form that is pre-populated with their personal information.
5. Marketing Campaigns. QR codes can be used by banks to promote their services or products.                    

#7 Alerts and Notifications

Push notifications hold an important place in building users' trust and providing them with guidance and support on the go. 

We have gathered 4 ways to use alerts and notifications to enhance your mobile banking ecosystem:

1. Transactional Updates. Delivering timely, accurate transactional notifications is a key component of any communications plan. Keeping users informed of their transactions, big or small, helps build trust in your brand, strengthen customer relationships, and creates a more seamless user experience. Push notifications can be used to confirm when a transaction has been completed or failed to process, as well as to notify users when a cash withdrawal, mobile deposit, wire transfer, or payment has taken place. Real-time notifications provide users with peace of mind and keep them informed of their spending behaviors, while also elevating the overall customer experience.
2. Security Alerts. By flagging fraud and sending security alerts to keep users informed of any suspicious activity, mobile banking institutions can help users spot fraud faster and take the necessary steps to protect their accounts. To ensure users take immediate action, security alert messages should be formatted with urgency and clarity, and include a clear call-to-action (CTA). Doing so will not only streamline the support process but also give users peace of mind and foster trust in the institution.
3. The Most Important Account Updates. Inform users of daily transactions, and major changes to their accounts, and remind them to routinely monitor their account and investment histories. For example, send reminders to review account statements, track term deposits, review loan or card statements, and access investment statements.
4. Financial Planning and Investment Tips. Mobile push notifications are an effective way to remove friction from users' day-to-day banking activities and communications, as well as to connect them with additional resources such as support content, educational articles, and informational videos. By sending notifications that link to educational content on topics such as loan types, savings best practices, expense management, long-term financial planning tips, and investment advice, you can empower your users and build trust with your brand. 

inVerita’s Custom Approach

inVerita is a software developer in the banking sector with extensive experience in delivering banking applications and solutions for established companies and startups. We help banks, trusts, escrows, and other financial institutions build, scale, maintain, and refactor their banking software. Our portfolio includes banking software applications for online and mobile banking systems, neo banks, B2B payment engines, trading platforms, and more. We understand the importance of security and compliance for software used in the banking industry, so adhere to the latest security and compliance practices.

Final Thoughts

Modern banks are under pressure to add more and more unique features of mobile banking to their software. Many of them have gone beyond adding “conventional” banking features to their apps and started incorporating non-financial services such as booking tickets, shopping, and food delivery into their mobile apps.