Mobile Banking Technology Trends: Challenges & Opportunities

The landscape of mobile banking is evolving at an unprecedented pace, reshaping how financial institutions interact with their customers. With an increasing number of digital users relying on mobile apps and a growing shift away from traditional banking channels, mobile banking is no longer just an option—it’s the foundation of modern banking. Yet, as mobile becomes the dominant channel, banks must balance innovation with customer expectations, ensuring seamless user experiences, hyper-personalization, and robust security.

In this article, we explore the key trends shaping mobile banking technology, the challenges the financial sector faces in keeping up, and the opportunities that lie ahead in building the mobile banking experience of the future.

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The role of the mobile channel and success factors for mobile apps

In the digital economy, banks must reinvent distinct roles for themselves instead of selectively developing service channel functionalities. Mobile platforms have become an essential part of customers' lives, offering personalized experiences and easily accessible services. Initially developed as an extension of online services or a way to move transactions beyond branches, mobile apps are now expected to be the first and most common way to interact with customers and an easily accessible tool that meets all typical needs, while at the same time being closely integrated with the banks' other channels.

To do this, banks should focus on four success factors for mobile banking applications to build an effective mobile customer service channel. 

• First, the app should work end-to-end like a digital bank so that the user gets the impression that all banking services can be provided only through the app. The user should be able to open accounts through the app, and the app's functionalities should focus on simple and everyday transactions (e.g., checking accounts or quick transfers), leaving the more complicated ones for the online channel. In addition, the app must have functionalities to attract new customers (e.g., gamification elements or a loyalty program).
• Another factor is client-centricity. Keep in mind that trust in the tool, convenience, and the usability of the app are key features for customers. A fast app should facilitate secure access (e.g., through biometrics/voice recognition) and connect to the most popular functionalities. When designing an app, the focus must be on the needs of the customer, not just on the services sold to the customer.
• The next point is the personalization of interactions, offers, and interfaces. Interactions must be personalized for customer behavior, with complete control by the customer. Users should receive personalized offers and advice tailored to their current situation. The application must also allow users to customize the interface according to their needs.
• The last factor is integration with the bank's other channels and tools. The application should allow seamless transition to other online channels, contact centers, or even kiosk-type devices in branches. The application must be effectively integrated at the architectural level with the bank's core system and CRM, among other things, for a smooth data flow. The tool should enable bank employees to track every step of the customer journey.
  

All the characteristics of mobile applications described above can be implemented with the available technologies or those which are part of technology megatrends.

Key findings on the challenges and opportunities in mobile banking

How often do you get the opportunity to engage with the experts responsible for developing a product that millions rely on daily, like mobile banking apps? Such occasions are rare, yet this has been an integral part of our work at LeanCode, a company specializing in mobile and web application development, for the past few years.

Our experience working with institutions such as Credit Agricole Bank Polska, Millennium Bank, and other banks has highlighted that many critical questions and perspectives on mobile banking remain unexplored, with no comprehensive source consolidating insights from multiple angles. Previously, we created the report "Mobile Banking in Poland 2022: From the User’s Perspective" and hosted the Technology Breakfast event in Warsaw to address these issues, bringing together industry leaders from banks and fintechs.

Below, we present eight key findings on the challenges and opportunities in mobile banking that industry professionals should be aware of:

1. Mobile banking applications are today an obligatory channel for every bank (and in the future they will even be the very basis for functioning).

• By Q3 2022, Poland had 21.9 million active online banking users, a 20% increase since 2019. Mobile banking grew even faster, rising 56% to 18.7 million users in the same period (Polish Bank Association).
• 68% of all U.S. consumers view or manage their accounts with a mobile app (Consumer Research on Digital and Mobile Banking, 2022).
• Redirecting traffic from local bank branches to mobile applications can reduce the cost of customer service by 7–9 times.
• Nowadays, mobile apps act as platforms—their Time to Market is 10 times shorter than other online channels when introducing new features, generating 20 times greater customer reach.
• The mobile channel forces us to be up to date with technological trends, e.g., Generative AI, that will allow us to conduct personalized communication with clients or assist employees in their daily work.

2. The NPS of mobile banking apps shows that there is still room for improvement.

• The application cannot remain only a service channel. Developing banking applications must become one of the bank's priorities to take the next step in its success in the market.
• Technology and digital channels should be perceived as one of the pillars of the bank's development strategy.
• Identifying new potential functionalities should go beyond traditional banking services, such as motorways or public transport payments.
• It is worth improving the Customer Experience based on identified customer preferences and habits and best market practices, e.g., by implementing an effective system to monitor expenses or by minimizing the number of clicks necessary to solve the case.

3. There are six areas to keep in mind when thinking about the application of the future.

• Digital Feature Guide: Today's mobile apps have numerous features, while >95% of customers use only two or three of them. The application of the future must "talk" to the client and be his guide to the possibilities offered.
• Data architecture: Collecting the correct data allows you to create a personalized UX and power bank analytics required by the business.
• Technology gives you an advantage: An automated graphical interface and breakthrough technologies (AI, Cloud Platforms, Hyperpersonalization) should be the cornerstone of the application.
• Easy-to-understand interface: Creating an almost "imperceptible" experience will make interactions natural/human.
• Unique experience: Customer service should be based on support with the proper knowledge, proactive problem-solving, and listening to customer feedback.
• Security and trust: Only an indisputably secure solution inspires customer trust, and security should be considered beforehand.

4. Mobile is the dominant segment of banking channels.

• The mobile channel is the most popular of all digital channels. Customers are becoming mobile-only, and banks need to adapt. 58% of users use only the mobile channel, 25% of users simultaneously use the mobile channel and other means of Internet access (e.g., via a personal computer), and only 17% of active users of Internet channels do not use mobile applications at all (data from 2022).
• Banking apps have become a product used daily: Based on the survey, 45% of all Polish banking customers use a mobile banking app daily, and 40% use a mobile banking app several times a week. 
• Mobile apps are used for personal finance management more often than websites: 30% of survey respondents claim they only use mobile banking.
• A good application helps attract customers: 57% of bank customers indicate that the mobile application is an essential factor when choosing their bank's offer.
• The mobile application must provide a high-level UX: The User Experience of mobile banking apps is becoming increasingly important. Intuitiveness was indicated as one of the most significant aspects in capturing user attention by as many as 78% of respondents.

5. Ensuring access to a wide range of products and services is a must-have for a modern bank.

• Opening a bank account only via the application has become standard: Creating an account only via the mobile application of a given bank is possible in 15 out of 21 tested banking applications.
• Bank customers most often use those functions that apply to their everyday life: According to survey respondents, the 3 most important functions of banking apps are ordering a payment card, the possibility of paying parking fees, and buying tickets for public transport.
• In Poland, when making online payments, respondents choose “BLIK” (a mobile payment system in Poland that allows users to make contactless payments, withdraw cash from ATMs, and transfer money using a unique, one-time 6-digit code generated within their mobile banking app) more often than the other available options: 40% of respondents use this method several times a month. In 2022, 14 of 21 tested banking applications offered access to this payment method.
• Managing a personal budget via a mobile banking app is still challenging: 95% of tested apps offer access to the payment transaction history. However, most features, such as automatic categorization of transactions, setting budgets, changing categorization rules, and identifying subscriptions, are still available only in some banks.

6. The scale of changes in banking is enormous. Banks have turned into digitalization leaders with vast IT facilities.

• The market forces the rapid implementation of new solutions, and the key factor is Time-to-Market. Banks focus on minimizing Time-to-Market by optimizing organization, processes, and technology.
• Today's key technological distinguishing features are well-organized infrastructure, an optimized implementation chain, and cross-platform technology for building mobile applications, e.g., Flutter.
• Value-added services are slowly becoming standard. Banks want to offer different value-added services via the mobile application and its interfaces so that the customer can fulfill any need. 
• Cloud solutions are gaining importance, and some of the processes of the services offered are already implemented in the cloud in banks. The cloud makes it possible to increase the number of services available to the customer and to deliver these services more efficiently.
• Banks are becoming financial software houses—powerful institutions with vast IT and infrastructural resources that put technology first. They also struggle with some of the challenging characteristics of a software house, i.e., the fight for talent and a need to motivate teams to search for innovations.

7. Banks and other financial institutions have to face their limitations and weaknesses to be able to develop effectively.

• Banks and other companies face budget constraints, as well as the fact that at any given time, a team can only implement a given range of functions that users need now. That is why prioritization and proper research on their needs are essential, so as to know where to allocate resources.
• To compete with other institutions, on the one hand, the bank can catch up in terms of features and implement what it lacks and what the competition offers, and on the other hand, it can try to look beyond the banking industry itself and see how fintech companies operate and what they offer.
• Optimization processes inside the organization, including implementing the Agile approach and treating internal teams that deal with innovation with greater importance, can support banks' functioning.
• We still don’t know a great deal about the features of mobile apps in other countries, and forget that the competitors of Polish banks are not only from Poland. Banks should follow the changes and innovations taking place in Asia, North America, and Western Europe.

8. Banks occasionally encounter design and development missteps in their applications that users are quick to notice.

• Post-Update Errors: Problems at the application development level mean customers often receive updated but non-functional applications.
• Removing functionalities without listening to customers: Seemingly uninteresting functionalities may turn out to be highly popular ones; they cannot be removed without knowing the opinions of users.
• No added value compared to the browser versions of the bank's website: Mobile applications must contain functionalities that are valuable to the client and not simply be a copy of the browser version.
• Intrusive serving of functionality: Each subsequent notification or unwanted functionality can create additional obstacles to the user experience.

Six dominant mobile banking trends

1. Mobile-only

From the user's perspective, a mobile banking app should act as a digital bank, offering its full functionality. Initially developed as an extension of online services or a way to move transactions beyond branches, mobile apps are now expected to be the first and most common way to interact with customers and an easily accessible tool that meets all typical needs, integrated with the banks' other channels. This must be taken into account at every stage of mobile banking app development.

2. Customer-centric

The customer-centric trend in mobile banking emphasizes placing user needs, convenience, and trust at the core of digital banking experiences. Modern banking apps must go beyond basic financial transactions, offering intuitive interfaces, seamless navigation, and personalized services tailored to individual financial behaviors. Building trust through security, transparency, and responsive customer support is crucial, as users increasingly expect banking apps to manage their finances and simplify their daily lives.

3. Hyperpersonalization

The digital economy allows companies to be much closer to customers
as they demand more tailored offers. According to Forrester's research, banks with personalization mechanisms in place report 189% higher cross-sell and upsell, 180% more efficient customer acquisition, and 33% higher customer retention and loyalty. The application should customize the interaction with the customer, providing tailored offers, personalized financial advice, and a user-friendly interface.

4. Omnichannel

The effective integration of the application with other bank channels should be ensured, and a smooth transition between them is necessary. Younger consumers, especially are more technologically savvy and are looking for a multichannel experience, balancing the ease of online and mobile banking with personal guidance for support and education on products such as mortgages and long-term savings. Multichannel transactions seem to have become the norm, but this trend is still developing. A Kearney study from 2022 shows that only 33% of consumers searched for and then purchased banking products online.

5. Artificial Intelligence

Global banks are using Artificial Intelligence to improve operational efficiency in almost every area of their work: customer service, anti-fraud 
and anti-money laundering, credit decisions, risk management, and finally, the automation of 
back-office processes. In order to drive this trend in banks, the right technology layer needs to be in place. Several of its most essential elements are the cloud ecosystem, data layer, and integration layer that will help build AI solutions and, at the same time, are or should be part of other technology initiatives in organizations.

6. Accessibility

Accessibility in mobile banking focuses on ensuring that banking services are inclusive and easy to use for all customers, regardless of their abilities or technical proficiency. Banks are enhancing app design with features like voice commands, screen reader compatibility, high-contrast modes, and simplified navigation to accommodate users with disabilities. Additionally, intuitive interfaces and multilingual support make mobile banking more accessible to diverse user groups. As digital banking becomes the primary financial channel for many, ensuring an inclusive experience is a regulatory necessity and a key driver of customer satisfaction and loyalty.

Conclusions

Digitization equalizes the chances for banks in the market. In the future, the winner will not be the one with the most branches, but instead the one who best manages the customer experience and transfers the level of relationship expected in offline channels to the digital world, building customer loyalty and commitment.

The future of mobile banking will be full of rapid innovation implementations, numerous market experiments, and far-reaching personalization to be even closer to the customer. Therefore, it is worth remembering to eliminate technical halts and implement technology, for example, Flutter technology, that will provide a long-term advantage in shortening the time-to-market.

Also, exchanging knowledge and experience is extremely important nowadays when banks are facing challenges resulting from inflation, economic difficulties, and changing legal restrictions, as well as those related to the necessity of a quick response to customers' needs and changing behavior. At our financial software development company, we support banks in increasing their technological abilities by delivering knowledge and services.