Best Features of Mobile Banking Applications

The rise of mobile banking is an obvious reaction to modern generations’ altered UX needs, or, in other words, a means of survival for a business in the age of digitization. To compete in today’s rapidly changing fintech environment, banking institutions must adapt quickly by combining long-established capabilities with newer, digitally enabled features that customers now consider essential.

In fact, based on the report by Insider Intelligence, 89% of all respondents and 97% of millennials regularly use mobile banking apps. Moreover, the share of account holders in the US who process banking matters via their phone is 64%, which indicates the prevalence of mobile banking over desktop software or offline branch visits.

In this post, you’ll discover the top 15 must-have mobile banking app features that most financial institutions have already included in their digital products or are about to include. Besides, you’ll review the 4 most innovative banks of 2024 and explore the reasons for moving banking services to an app.

15 Online Banking Features That Matter

Banking institutions tend to adopt innovations rapidly, so no wonder that modern-day mobile banking apps are packed with tons of different functionalities.

You can learn how to create a digital bank from another blog post by DashDevs.

Now, let’s discover what the core suite of features that well-established banks is have already implemented in their product offerings or are about to implement:

#1 Card Management

Card management in mobile banking apps is what offers comprehensive control over debit and credit cards. With it, users can:

• Activate new cards
• Set and adjust spending limits
• Lock/unlock cards
• Request replacement cards

Basically, the card management feature can be considered core functionality, which to the largest extent, defines how useful the mobile banking app is for users. It also lies at the cornerstone of convenience and security in card usage.

#2 Real-Time Transaction History

Real-time transaction history provides users with immediate updates on their account activities, often complemented with push notifications, which we’ll delve into in the below sections. Real-time transaction monitoring features enable users:

• Monitor spending in real-time
• Detect unauthorized transactions
• Make informed financial decisions
• Access a range of other functionalities, like spending monitoring tools or report management

It’s often when the history of transactions serves as the second main functionality. It can be enhanced with gamification options or integrated seamlessly with other features that a mobile banking app has to offer.

#3 Budgeting Analytics and Expense Tracker

Budgeting analytics and expense trackers help users manage their finances by providing insights into their spending habits. With them, users can:

• Categorize expenses
• Set and track budgeting goals
• Visualize spending patterns
• Lock particular amount of funds preventing it from spending or notify about reaching spending limits

Budgeting analytics and expense trackers often provide visual representations of key statistics, such as graphs and charts, to make it easier to understand spending patterns and adhere to budgets.

#4 Advanced Security and Biometric Authentication

A successful banking app must implement strong security measures that extend beyond traditional passwords and usernames. Biometric authentication, including fingerprint, facial recognition, and iris scanning, is becoming increasingly popular in financial apps for its enhanced security and ease of use. So, as of 2024, companies are integrating biometric authentication and multi-factor authentication into their apps.

For financial apps, advanced security, and biometric authentication measures include:

1. Multi-Factor Authentication (MFA): Combining biometric factors with other authentication methods like PINs, passwords, or OTPs for enhanced security.
2. Encryption of biometric data: Protecting biometric information through encryption to prevent unauthorized access or breaches.
3. Secure storage of biometric keys: Storing biometric keys in secure hardware modules to ensure their integrity and prevent tampering.
4. Liveness detection: Implementing techniques to detect if the biometric sample is from a live person to prevent spoofing attacks.

#5 Currency Exchange

Currency exchange features in mobile banking apps enable seamless conversion of funds into different currencies. This is especially useful for travelers or individuals dealing with international transactions. Some of the opportunities that the currency exchange feature offers are:

• Review of current exchange rates
• Instant currency conversions when transferring money between cards that use different currencies
• Simplification of international transactions and instant conversion of currency for recipient and sender

Basically, currency conversion is a built-in feature that facilitates other major banking processes related to the handling of funds.

#6 Domestic and International Money Transfers

Domestic and international money transfer features allow users to send funds to others within the same country or abroad. This simplifies the process of remittances and payments, offering fast, secure, and cost-effective solutions. Users can transfer money to friends, family, or businesses with just a few taps.

Types of domestic transactions:

• Direct money transfers
• Interbank Transfers
• Mobile wallet transfers

Types of international transactions:

• Cross-border wire transfers
• International remittance services
• SWIFT Transfers
• International money order
• International ACH
• Prepaid debit card transactions

You can discover more about cross-border payments and currency exchange from another blog post by DashDevs.

#7 Push Notifications

Push notifications keep users informed about their account activities and important updates. This feature sends real-time alerts for transactions, low balance warnings, bill payment reminders, and promotional offers.

Here are some of the common push notifications:

• Transaction alerts
• Low balance warnings
• Bill payment reminders
• Promotional offers

By staying informed, users can manage their finances more effectively and take advantage of timely opportunities.

#8 Report Generation and Downloading

Report generation and downloading allow users to create and access detailed financial reports for a particular period.

Types of reports:

• Account statements
• Spending analysis
• Financial summaries

The reporting feature is useful when doing taxes or providing a bank statement. Besides, users can download reports for personal record-keeping or share them with financial advisors for informed decision-making.

#9 ATM Locator

The ATM locator feature helps users find the nearest ATM for cash withdrawals or other banking services. Utilizing GPS technology, this feature provides directions and details about ATM locations, saving time and enhancing convenience for users who need to access cash or banking services on the go.

ATM locator feature is often integrated with digital maps, like Google Maps, for convenience of usage. Sometimes, mobile banking apps have built-in maps dedicated solely to helping customers find the nearest ATM.

#10 Cardless ATM Withdrawals

The cardless ATM feature enables bank customers to cash out money from an ATM without using a credit card. This feature is realized in mobile banking apps through the use of secure digital tokens or QR codes. Users generate a code within their app, which they then enter or scan at the ATM to access their account and complete the withdrawal.

Cardless ATM withdrawal is an excellent way to reduce the number of points of contact when getting cash from an ATM. Another benefit of this method is that users no longer need to carry around their debit cards. Furthermore, cardless ATM withdrawals are now safer than traditional card-based ATM withdrawals. Another great thing about the cardless cash withdrawal feature is that card skimmers are no longer a threat.

#11 Personal Financial Assistant and Bill Payment

Payment of bills and saving money for investments can be a painful experience because they represent financial obligations that people must meet on a regular basis. Applications for mobile banking can make this process a little easier.

Online banks, for example, can enable automated payments for recurring bills like electricity or insurance.

This can help consumers pay on time and relieve the mental load of remembering these obligations. It will also make one-time payments simple with scan-and-pay mobile banking features, particularly QR codes. This is useful in situations such as property taxes, fine payments, and cash payments.

Besides that, recent mobile banking advancements have turned these apps into personal financial assistants. When it relates to the potential benefits that bank apps should provide, clients should be able to do more than just check their account balance and transaction history.

Some banking apps can now assist online banking customers in monitoring their spending, managing their financial budget, and gaining knowledge to help them make better financial choices. Customers can use their current digital banks to save for and pay for their upcoming vacation.

#12 Peer-to-Peer Mobile Payments

Peer-to-Peer (P2P) mobile payments are transactions where individuals can transfer money directly to each other using a mobile app or online platform without the need for traditional banking intermediaries.

Aside from QR codes and bank account numbers, some fintech and bank apps support peer-to-peer payments by sending funds to the user’s cell phone number, email, or username. Users don’t even have to know the name of the recipient’s bank. Simply send money to a friend’s mobile number or username, and the bank will handle the rest.

Non-bank fintech players such as PayPal, Venmo, Zelle, and Cash App, among many others, are driving the continued adoption of P2P services. This pattern appears to be repeated in other markets where digital wallet providers are at the forefront of P2P payments.

You can discover more about Peer-to-Peer payments from another our blog post.

#13 Managing Deposit Accounts via Mobile Device

Although mobile banking apps have already replaced many services offered in physical locations, not all services can be done by digital alternatives. In recent years, banks have actually started offering online mobile check deposits as another digital service.

Managing deposit accounts via mobile devices allows users to handle their savings, checking effortlessly, and other deposit accounts on the go. With intuitive interfaces, users can view account balances, monitor transaction history, and transfer funds between accounts with just a few taps.

#14 Virtual Assistants with Voice Recognition

Banks have already started providing digital customer support services using AI technologies. Rather than calling a center of customer service to speak with a human operator about routine questions and money transfers, these virtual assistants make it possible to get urgent help with a variety of banking tasks.

Let’s take a look at an example of a Smart Assistant from US Bank:

Just by sending a query to Smart Assistant, you can use the voice-activated virtual assistant service in the US Bank app to monitor your transactions, analyze spending, existing business operations, and so on.

For one, you could say something as simple as, “Plan a $95 payment to Nancy,” or you could ask a query like, “How much did I spend at the grocery store last week?”

Not all banks have this voice-activated bot with a comprehensive set of functions. However, some banks are beginning to offer features for quick responses to regular questions or limited interactions. Banks are going to keep developing more advanced AI-powered ways to enhance customer service and assist you with account management.

Though the list above can be prolonged, these are the best banking app features that turn users’ attention from physical banking to the mobile-centered future of banking, so beginning with them will guarantee a head start on a new mobile banking journey—both for your customers’ enjoyment and your business development.

#15 Loyalty, Cashback, and Bonus Programs

Mobile banking apps are increasingly incorporating additional programs to enhance customer engagement and reward users for their transactions. These programs are designed to provide tangible benefits for everyday banking activities, encouraging continued usage of the app.

Through integrated loyalty programs, users can earn points, cashback, or bonuses for various activities, such as making purchases with their debit or credit cards, paying bills, or even referring new customers to the bank. These rewards can then be redeemed for discounts, merchandise, or even direct account credits.

Banking of the Future: The Most Innovative Apps in 2024

Let’s look through the examples of well-established licensed financial institutions that define the banking of the future:

Revolut

Founded in 2015, Revolut started as a travel-focused currency exchange app and has since evolved into a comprehensive digital banking platform. The company quickly gained popularity for its innovative financial services, including currency exchange, budgeting tools, and stock trading. Known for its flexibility and global reach, Revolut provides users with a seamless and cost-effective way to manage their finances across borders.

Innovative features it has implemented:

• Real-time currency exchange with no hidden fees.
• Built-in budgeting and analytics tools.
• Cryptocurrency trading and investment options.
• Global travel insurance and emergency medical coverage.

Chime

Chime, founded in 2013, aimed to create a more user-friendly and fee-free banking experience. As a fintech company, Chime provides mobile banking services with a focus on simplicity and user-friendliness. With no monthly fees, minimum balance requirements, or overdraft fees, Chime offers a straightforward and accessible banking experience.

Innovative features it has implemented:

• Early direct deposit that allows users to access their paycheck up to two days early.
• An automatic savings feature that rounds up transactions and saves on the difference.
• Fee-free overdraft protection through the SpotMe feature.
• Real-time transaction alerts and daily balance updates.

Monzo

Monzo was founded in 2015 by Tom Blomfield, Jonas Huckestein, Jason Bates, Paul Rippon, and Gary Dolman. Originally launched as a prepaid debit card, Monzo quickly transitioned into a full-fledged digital bank, receiving its banking license in 2016. Known for its transparent approach and user-friendly app, Monzo provides a modern banking experience with features designed to help users manage their finances effectively.

Innovative features it has implemented:

• Instant spending notifications and real-time balance updates.
• Pots for organizing money and setting aside savings.
• Built-in budgeting tools with spending categorization.
• Fee-free spending abroad and international money transfers.

Varo

Varo was founded in 2015 with the mission to make banking more accessible and affordable. In 2020, Varo became the first digital bank to receive a national bank charter in the U.S. With no monthly fees or minimum balance requirements, Varo offers a range of financial services designed to help users manage their money more effectively.

Innovative features it has implemented:

• High-yield savings account with an option to earn a higher interest rate through Varo Believe.
• Early direct deposit, giving users access to their paycheck up to two days early.
• No-fee overdraft protection up to a certain limit with Varo Advance.
• Automatic savings tools, including Save Your Pay and Save Your Change.

While there are many more innovative, well-established companies and technology-first startups in banking, the listed banks have already achieved success and recognition with their offerings.

What Exactly Is Mobile Banking: 7 Reasons to Move a Service to an App

Are you interested in banking as a service but would like to breathe a new life into its product embodiment? Then the best banking app is what you need as a good challenge! But before a start, consider the advantages the mobile banking application testing will bring to you:

1. Reduced expenses. As a rule, an app enables greater geo coverage, process automation, and error reduction through ML technologies.
2. Easier client analytics collection. It embraces all the stages of the KYC procedure, from user acquisition to enhanced client engagement and overall performance.
3. Better security. Gesture patterns, two-factor authentication, and other verification types work well in the post-pandemic realities, whereas fraud activity also continues to speed up and evolve.
4. Higher ROI. The easy banking problem-solving on the go and exquisite perks that aren’t available in traditional banks usually explain the devoted rows of customers and solid revenue boost.
5. Advanced UI. What has started as a part of the site’s interaction with the user is now shaping the mobile experience of TA and their satisfaction rate with the service.
6. Specifically tailored options. Since the apps usually save the costs of the business owners, their creators usually supply their solutions with the extra perks no one has suggested.
7. Additional marketing channel. Social media, emails, and what else? An app creates a unique place to spread product-related news and updates quickly through immediate notifications.

Is this list convincing you of the exclusivity of mobile banking apps as a business? In this case, you are probably interested in app product development services.

Final Take

Mobile banking apps are revolutionizing the financial industry by offering a wide range of innovative features. From advanced security measures and biometric authentication to seamless currency exchange and peer-to-peer payments, these apps provide convenience, security, and efficiency. As technology continues to evolve, we can expect even more sophisticated features that will further enhance the mobile banking experience for users and drive the future of banking.

Have you decided on the most valuable banking app features you’d like to implement in your perfect app product? To plan and implement any such intervention, you need assistance from a trusted provider of fintech services. Entrust DashDevs, a company that has delivered more than 500 dev projects and has over 12 years of experience in finance development, contribute to your best project. Contact us, and let’s discuss opportunities for your business.