What Do Banks Need Before Building a Money App?

Most banking apps get deleted within 30 days of being downloaded—and it's not because they don't work. They get deleted because banks rushed into development without sorting out the fundamentals first. I've seen it happen more times than I care to count. A bank comes to us excited about building an app, they've got budget, they've got stakeholders pushing for it, and they want to start coding next week. But here's the thing—jumping straight into development is exactly how you end up with an expensive app that nobody uses.

Building a banking app isn't like building a game or a social media platform; the stakes are completely different. You're dealing with people's money. Their life savings. Their mortgage payments. Get it wrong and you don't just lose users—you lose trust, and in banking, trust is everything. I mean, would you put your salary into an app that crashes randomly or feels dodgy to use? Course you wouldn't.

The difference between a successful banking app and a failure often comes down to what happens before any code gets written

Over the years working on fintech app development projects, I've learned that the banks who succeed are the ones who do their homework first. They understand their users inside and out. They've got their security sorted before they even think about features. They know which regulations apply and how to meet them. And they've made hard decisions about what their app actually needs to do—because trying to build everything at once is a recipe for disaster, honestly. This guide walks through exactly what you need to have in place before you start building. Its not glamorous stuff, but it's the difference between an app people trust with their money and one that gets uninstalled by Friday.

Understanding Your Users and Their Financial Needs

Before you even think about features or design, you need to understand who you're building for and what they actually need—not what you think they need. I mean, its tempting to look at what other banks are doing and copy their homework, but that's a quick way to build something nobody wants. People's relationships with money are deeply personal; they vary wildly depending on age, income, life stage, and even cultural background. A student managing their first overdraft has completely different needs than a retired couple planning their estate.

The mistake I see banks make is assuming everyone wants the same thing. They don't. Some users need help budgeting because they're living pay cheque to pay cheque. Others want sophisticated investment tools or ways to manage multiple properties. And here's the thing—your existing customers are already telling you what they need through their behaviour. Look at your call centre data, your branch visits, your website analytics. Where are people getting stuck? What questions come up again and again? That's where your app should focus.

You know what's interesting? The features banks think are most important often aren't what users care about at all. We conducted research for a high-street bank that was convinced people wanted detailed transaction categorisation with pie charts and graphs. Turns out their users just wanted to know if they had enough money to get through the month without going into their overdraft—that's it, really. Simple answer to a simple question. But the bank was so focused on being clever they'd missed what actually mattered.

Start by segmenting your users into clear groups based on their financial behaviours and needs. Don't just use demographics; look at how people actually use their accounts. Are they savers or spenders? Do they have regular income or variable? Do they manage multiple accounts or keep everything in one place? These patterns tell you far more than age and postcode ever will, and they'll shape everything from your feature set to how you communicate within the app itself.

Building a Strong Security Framework

Right, let's talk about security—because honestly, this is where most banking apps either win or lose their users trust before they've even launched. I've seen projects get derailed six months in because security wasn't baked into the foundation from day one, and let me tell you, retrofitting security is about ten times more expensive (and painful) than building it in properly from the start.

When you're building a fintech app, you're essentially asking people to trust you with their life savings. That's not a small ask. Banks need to think about security at every single layer of their application—from how data moves between the user's phone and your servers, to how its stored in your database, to what happens when someone inevitably tries to break in. And they will try; financial apps are massive targets for hackers because that's literally where the money is.

The Non-Negotiable Security Requirements

There are certain things that every banking app absolutely must have, no exceptions. Multi-factor authentication isn't optional anymore—your users need it, regulators expect it, and honestly it's one of the best defences against account takeovers. Biometric authentication (fingerprint and face recognition) should be standard now; people are used to it and it makes their lives easier whilst keeping things secure.

End-to-end encryption is another must-have. Every piece of sensitive data needs to be encrypted both in transit and at rest. That means using TLS 1.3 or higher for all communications and proper encryption algorithms for stored data. I've worked on projects where clients wanted to cut corners here to save development time—don't do it, the risk isn't worth it.

Building Defence in Depth

Here's the thing about security in fintech app development: you can't rely on a single protection layer. Banks need what we call defence in depth, which basically means having multiple security measures that work together. If one fails, others are there to catch potential threats.

Your security framework should include these key elements working together:

• Real-time fraud detection systems that flag unusual transaction patterns
• Regular security audits and penetration testing (at least quarterly)
• Secure code review processes before any code goes into production
• API security with rate limiting and proper authentication tokens
• Session management that automatically logs users out after periods of inactivity
• Comprehensive logging and monitoring to detect breaches quickly

What surprises a lot of banks is how much user behaviour plays into security. You can have the most secure infrastructure in the world, but if users are choosing "password123" as their password, you've got problems. That's why your banking app strategy needs to include user education—gentle nudges towards stronger passwords, explanations about why you're asking for that second authentication factor, notifications about suspicious activity.

Work with security specialists from the very beginning of your project, not after you've already built half the app. Their input on architecture decisions early on will save you months of rework and potential vulnerabilities that are harder to fix later.

One mistake I see repeatedly is banks treating compliance and security as the same thing. They're related, sure, but being compliant with regulations doesn't automatically mean you're secure. Compliance is the minimum baseline—it tells you what you legally have to do. Good financial app security goes way beyond that minimum and thinks about actual threats your users will face in the real world.

The mobile banking apps that succeed long-term are the ones that treat security as an ongoing process, not a checkbox you tick during development. Threats evolve constantly; your security measures need to evolve with them. Budget for regular updates, stay on top of new vulnerabilities, and don't get complacent just because you haven't been breached yet.

Getting the Right Regulatory Approvals

Right, lets talk about regulation—because this is where a lot of banking apps stumble before they even launch. I mean, you can build the most beautiful money app in the world but if you haven't got your regulatory ducks in a row, you're not going anywhere. And trust me, the financial regulators don't mess about; they've seen every trick in the book and their job is to protect consumers from dodgy apps that might lose their money.

Here's the thing—the specific approvals you need depend entirely on what your app actually does. Are you holding customer funds? Processing payments? Offering investment advice? Each of these activities requires different licences and registrations. In the UK, you're dealing with the Financial Conduct Authority (FCA), and they have very clear requirements about who can do what. If you're processing payments, you might need to become an Authorised Payment Institution or an Electronic Money Institution. If you're doing anything more complex like lending or investment services, well... thats a whole different level of regulatory scrutiny.

What You'll Typically Need

Most banking apps need at least some of these approvals, though your exact requirements will vary:

• FCA authorisation or registration for your specific financial activities
• Data protection registration with the ICO for handling personal financial data
• PCI DSS compliance if you're processing card payments
• Anti-money laundering procedures and Know Your Customer (KYC) processes
• Regular audit and reporting requirements once you're operational

One mistake I see all the time? Banks and fintechs leaving regulatory approval until after they've built the app. That's backwards. You need to understand your regulatory requirements before you even start designing features because those regulations will directly impact what you can and cant do. Some features that seem simple from a technical standpoint might be regulatory nightmares—and discovering that after you've spent six months building them is, well, its not a conversation anyone wants to have with their stakeholders.

Choosing Your Technology Stack

Right, so you've sorted your security framework and you know what regulations you need to follow—now comes the part where you actually decide how to build this thing. And honestly? This is where a lot of banks get it wrong because they either go too conservative or jump on whatever tech is trending that month.

The technology stack you choose for your banking app isn't just about what programming languages your developers like or what's popular on tech forums; it's about what will keep your app running smoothly when you've got thousands of people checking their balance at 9am on a Monday morning. I've seen apps crash on launch day because the team picked tech that looked good on paper but couldn't handle real-world banking loads.

For most banking apps, you're looking at a few core decisions. Native development (separate apps for iOS and Android) versus cross-platform frameworks like React Native or Flutter. Native gives you better performance and access to device features, which matters when you're dealing with biometric authentication or secure enclaves. But it means maintaining two codebases, which gets expensive fast.

The best technology stack for a banking app is the one your team can actually maintain and scale, not the one that wins awards at tech conferences

Your backend infrastructure needs serious thought too. Most banks I work with end up using a microservices architecture because it lets them update individual features without bringing down the whole system—pretty important when you're handling peoples money! Cloud providers like AWS or Azure offer the security certifications banks need, but you'll want a hybrid approach that keeps some sensitive data on-premises to satisfy regulators. And whatever you choose, make sure its something your development team has actual experience with, not something they want to learn on your dime.

Planning Your Core Features

Right—so you've got your security sorted and your regulatory approvals in place. Now comes the fun bit: deciding what your app actually does. And here's where most banks get it wrong, they try to cram everything into version one. Every single feature their teams have thought of over the past six months. It's a disaster waiting to happen, honestly.

When I work with banks on their money apps, I always push for what I call the "essential eight". These are the features that users expect from any banking app, and without them you're dead in the water. We're talking about checking balances, viewing transactions, transferring money between accounts, paying bills, depositing cheques (yes, people still use them!), finding ATMs, managing cards, and setting up alerts. That's it. Nothing fancy, nothing clever—just the basics done really well.

Must-Have Features for Launch

• Account balance viewing with real-time updates
• Transaction history with search and filtering
• Internal transfers between own accounts
• External transfers to other people
• Bill payment functionality
• Mobile cheque deposit
• Card management (freeze, unfreeze, report lost)
• Customisable notifications and alerts
• ATM and branch locator

Features You Can Add Later

Sure, you might want to add budgeting tools or investment tracking or credit score monitoring down the line. But dont make the mistake of building those for your first release. Every feature you add increases your development time, your testing requirements, and your potential failure points. I've seen banks spend 18 months building feature-rich apps that crash constantly because there's too much going on under the hood.

The thing is, users don't want everything on day one anyway. They want an app that works perfectly for the things they do most often. Get that right first, then add the nice-to-haves based on actual user feedback—not what your product team thinks users want.

Creating a User Experience That Builds Trust

When you're building a banking app, trust isn't just nice to have—it's everything. I mean, people are literally putting their life savings in your hands, and if your app feels dodgy or confusing for even a second, they'll delete it faster than you can say "fintech app development." I've seen brilliant banking apps fail not because of security issues or missing features, but because the UX made people feel uncomfortable. Its that simple really.

The thing about financial apps is that users come to them with a completely different mindset than they do with social media or games. They're cautious. They're looking for reasons not to trust you; so every design decision needs to reinforce that you're safe, professional, and on their side. This means clean layouts, clear language (no confusing jargon!), and making sure every action has obvious feedback. When someone transfers £500, they need to know immediately that it worked—a vague loading spinner just won't cut it here.

Design Patterns That Signal Safety

People recognise certain design patterns as trustworthy because they've seen them in other banking apps. That's not copying—that's smart mobile banking apps strategy. Use familiar icons for common actions, keep your colour scheme professional (bright pink might work for a dating app but not for banking), and make sure your navigation is predictable. When users open your app, they shouldn't need to figure out where things are...they should just know. And please, for the love of all that is holy, make your terms and conditions readable. Nobody likes legal text, but if you must include it, break it into digestible chunks with headings.

Test your app with people over 60 and under 25—if both groups can complete a money transfer without help, you've nailed your UX. These age groups will expose different usability issues that your core demographic might miss.

Transparency in Every Interaction

Banking app strategy must include showing users exactly whats happening with their money at all times. No hidden fees that appear at checkout. No vague processing times. If a transaction will take 3 business days, tell them upfront—don't let them wonder if something's gone wrong. I've worked on apps where we added a simple progress tracker for account verification, and support tickets dropped by 40% because people weren't worried anymore. They could see exactly where they were in the process. Financial app security also extends to UX; when you're asking for permissions or personal data, explain why you need it in plain English. "We need your location to find nearby ATMs" is much better than "This app requires location services."

Setting Up Your Testing and Quality Process

Right, lets talk about testing—because when you're dealing with peoples money, "good enough" really isn't good enough. I mean, a crash in a gaming app is annoying; a crash during a bank transfer? That's a nightmare that'll have customers ringing your support lines at 3am and tweeting about how terrible you are. And trust me, those tweets spread faster than you'd like.

The thing about financial apps is they need to work perfectly across hundreds of different scenarios. What happens when someone loses their internet connection halfway through a payment? What if they've got an old Android phone from 2018 that's running some obscure version of the OS? These aren't edge cases in banking—they're Tuesday afternoon.

You need automated testing that runs every single time your developers make a change to the code. Unit tests, integration tests, end-to-end tests...its all boring stuff but bloody important. But here's what most banks get wrong—they rely too heavily on automated testing and forget about real human beings using the app. Automated tests can't tell you if your button placement feels wrong or if your error message sounds like it was written by a robot having a bad day.

That's why you need actual people testing your app too. Not just your team who've been staring at it for months, but real users who match your target audience. Watch them use your app without giving them instructions. You'll learn more in one hour of watching someone struggle with your navigation than in a week of automated testing. And before you launch? Get penetration testing done by security experts who'll try to break into your app like they're actual criminals. Because if they can't break it, chances are the real criminals won't either.

Building a banking app isnt something you rush into—thats the main takeaway here. I've worked on enough fintech app development projects to know that the banks who succeed are the ones who do their homework first; the ones who fail usually skipped steps they thought they could get away with skipping. They cant.

The truth is, there's no shortcut when it comes to mobile banking apps. You need to understand your users deeply (and I mean really understand them, not just assume you know what they want). You need security that's actually secure, not just secure enough. You need regulatory approvals that cover everything you're planning to do—and trust me, the regulators will find anything you've missed. Your technology choices need to support where you're going, not just where you are today. And your features? They need to solve real problems, not just look good in a demo.

But heres the thing—if you get all these pieces right, if you plan properly and dont rush, you'll build something that users actually trust with their money. And that trust is everything in banking app strategy.

The mobile banking world is competitive. Brutally so. New fintech apps launch every week, and users have more choices than ever before. But there's always room for an app that genuinely puts users first, that takes financial app security seriously, and that makes managing money feel less like a chore and more like something people actually want to do.

So before you write that first line of code or sign off on those wireframes, make sure you've ticked every box we've covered. Your future users will thank you for it—probably by actually using your app instead of deleting it after the first login.