Offering a best-in-class mobile banking app is easier than you think

The mobile banking landscape has fundamentally shifted for small to mid-sized financial institutions. What was once a “pick two” scenario between speed, cost, and quality has evolved into an accessible opportunity for even community banks to deliver exceptional digital experiences.

For small to mid-sized banks and credit unions looking to build a new mobile banking app, the old saying used to apply: you can have it fast, cheap, or good — pick two. But that trade-off is starting to fade. Today, delivering a high-quality mobile banking experience that’s also affordable and quick to launch is increasingly within reach. And for institutions that get the basics right, the payoff in engagement, satisfaction, and loyalty can be immediate.

The shift is consequential: A decade ago, many community financial institutions had mobile apps, but most were basic, lightly branded (if at all!), and limited in features. Since then, digital adoption has accelerated across all demographics, and the mobile app has become the front door for customers. A new white paper by the outsourced credit card solutions provider Elan offers critical context: Nearly three-quarters of all banking interactions now happen through digital channels. And 55% of U.S. consumers primarily use mobile apps to manage their financial accounts, well ahead of desktop-based online banking.

As usage has grown, so have expectations, driven by widespread fintech innovation. According to Elan’s analysis, which gathers insights from a broad range of industry research, consumers increasingly rely on mobile apps to complete more complex financial tasks — including credit card management, rewards redemption, and even setting up instalment payments. In a Forrester study cited by Elan, 65% of U.S. customers said they want a mobile app that brings bank accounts and credit cards together in one place.

And if any of those tasks aren’t easy to complete, members don’t hesitate to switch providers. The white paper notes that 65% of users will abandon a mobile app if functionality declines, and 57% would consider leaving a provider altogether due to a poor mobile experience. The key takeaway is that it’s no longer a viable strategy to let a mobile app languish as the world of digital technology forges ahead.

A New Playbook for Mobile

For smaller institutions, mobile used to feel like a big-company game. Now, for those looking to keep pace, there are more options. You can still scoop up talent to build it yourself, but vendor and partner options have gained in quality and accessibility. Technology partners now offer prebuilt, customizable app platforms, which can include features that were once expensive to build internally, including screen-sharing for live support, real-time fraud alerts and seamless merchant interactions.

Sharone Tate is Head of Cards Digital Experience at U.S. Bank, the parent company of Elan Credit Card. Her team recently led the effort to revamp Elan’s mobile app, creating a jump in user ratings from 1.6 stars to 4.8. And digital satisfaction and usage have continued to rise, further underscoring the app’s success. “It’s vital that your mobile app works really well so that there’s no roadblocks or headwinds,” Tate said. For customers who prefer a collaborative approach, her team introduced a co-browsing feature that lets support agents and users troubleshoot together.

These shifts in cost, capability, and consumer expectations are reshaping how institutions approach mobile strategy. For those evaluating their next move — whether it’s a first-time launch or a long-overdue upgrade — success depends on focusing attention on three key areas:

Start with strategy: A mobile app should align with broader goals. Is your institution trying to attract younger members? Improve card engagement? Reduce service calls? Defining the purpose of your app helps guide key design and feature decisions. According to Elan, “a robust digital strategy must be a core component” of every bank or credit union’s growth plan.

Build it right: Success depends on execution. The white paper outlines five key areas:

1. Market research helps institutions anticipate what members expect, especially younger generations who will soon manage a large share of inherited wealth.
2. Simple design is essential. Top features should be accessible in two taps or fewer, and tools like auto-saved applications and reminder emails can reduce drop-off during account setup.
3. User experience must be seamless. Glitches or friction points quickly erode trust and increase attrition.
4. Security and privacy should include biometrics, real-time fraud alerts, and encryption measures that consumers not only value but increasingly expect.
5. Ongoing maintenance keeps apps aligned with member needs and compliant with new standards. The white paper notes that annual upkeep typically runs 15 to 20% of initial development costs, but some vendor solutions bundle this in.

Stay agile: Mobile apps aren’t one-time launches. They evolve. Institutions should plan for regular updates, gather feedback from reviews and surveys, and watch usage patterns to inform decisions.

Tate emphasised the value of learning directly from the end user. Her team monitors feedback and app store reviews to find areas for improvement, in addition to site performance and traffic. “Too few financial institutions take care of the basics,” she noted. “Experiences must be monitored and analysed, satisfaction surveys must be sent and reviewed, and someone needs to reach out to connect with customers,” Tate noted that it’s increasingly critical to ensure that all aspects of the digital experience are exceptional, from everyday touchpoints to moments of truth. Continuously refining and optimising the user experience is essential to retaining members and sustaining engagement.

Another reason to watch the data: Tate said that since Elan’s app was upgraded last September, there has been a 5% uptick in use of the mobile app across generations, suggesting that an effective app helps reach young and old alike.

Mobile banking has not only become the primary channel for customer interaction, but expectations around usability, security, and functionality have continued to rise. At the same time, solutions have become more accessible. Institutions no longer need to choose between building from scratch or settling for generic tools. Modular platforms, vendor partnerships, and modern APIs have shifted the economics of mobile delivery, lowering barriers without lowering standards.

This isn’t just about keeping pace. It’s about preserving relevance. Some 63% of cardholders have experienced fraud at least once, and the FTC received 426,000 reports of credit card fraud in 2023. Meanwhile, 60% of consumers prefer multi-factor authentication, 64% would use facial recognition for login, and 51% have already opted into biometric access, according to the Elan study. These preferences aren’t optional features — they’re baseline expectations.

Institutions that invest accordingly will reinforce account-holder trust and position themselves to retain digital-first customers across generations

See how DPA streamlines workflows while boosting efficiency and security. Download the white paper to discover why the best decision you can make is automation.

Source: THE FINANCIAL BRAND