Mobile-Only Banking: Your Profit-Earning Strategy In The FinTech Field

17 Jul 2017
11 min
author avatar
Sergey L.

When was the last time you paid in cash? We bet it was so long ago! Today it is much easier and quicker to use your mobile wallet rather than recourse to a conventional wallet in your bag. Moreover, you can buy and order everything you want just sitting in front of your laptop. Financial institutions readily present their new technological achievements like online banking that has already changed the face of the world financial system.

As a matter of fact, it is not hot news for us since online banking has become an integral part of our life and significantly simplified it. But to register your account in online banking, you need to visit a banking department first. What would you say if your bank exists only in an online environment, without a physical building, staff or paper documents? Surprised? Such state of affairs is possible today due to a new trend called mobile-only banking. This article considers in detail what online banking is, it's types, and how to arrange mobile-only banking app development considering all it's pros and cons.

What is online banking?

It can be described as one type of remote service. It makes it possible to perform any operations with an open bank account. You can do the following:

  • Make utility payments, pay fines, credits;
  • Find current information on your available credit or debit card;
  • Convert funds, exchange currency;
  • Make payments and transfers.

See how to make money on free apps. Read How do free apps make money?

To connect to this service, you should find a bank office and conclude an agreement. In this document, you can find all details that allow you to enter your personal dashboard on the bank's website, an account number and personal data.

Online banks only

Sample of how mobile-only bank works

So anyone can check an online bank account using a password and login from any place where an Internet connection is available. Everything is simple and convenient, no additional skills are required!

Apart from the advantages described above, you can perform any financial transactions in a matter of seconds. Forget about payment delays! Credit or other payments will be accepted at the banking account immediately. Besides, due to the automation of calculations, online rates are lower than commissions you have to pay when you go directly to the bank.

Finally, all payments in an online banking system are encrypted from being hacked and other fraudulent actions, since all clients' data is stored safely on the bank's server. Thus, online banking can be a real virtual assistant.

Types of online banking

There are some different types of online banking:

  • Informational type: you receive information about the state of your bank account. You can monitor your balance, history of payments and expenses. But you cannot buy currency, transfer funds, or make payments;
  • Accounts management: you have an access to the data in your account and an opportunity to make payments. You can pay for mobile communications, Internet service providers, cable TV etc;
  • Finances management: all complex of mobile banking services in online mode - you can transfer funds, get loans, sell and buy securities and so forth. 

Thus, online banking is a technology for managing banking accounts via the Internet. It embraces all ranges of banking services available in the bank except for cash transactions.

As for online banking types, there are 4 common types widely used around the world:

Mobile banking

Online management of banking accounts and cards is easier with the help of smartphones and tablets. It supports all types of financial documents, contains encryption mechanisms and an electronic digital signature. It provides you with 24/7 access to all the services of electronic banking and account management.

Funds financial management

Conventional mobile banking in use

Phone banking

It is not the same as mobile banking. Here you can check your balance, request statements for a certain period to your fax, replenish or block your card and mobile account. Just call to the bank and perform all these actions. When you are there, you can follow the instructions of the voice menu and select the option you need. So you can get required information via voice message or fax.


See more about contactless payment technology. Read Contactless payment: key players, benefits and risks

SMS banking

Access bank accounts and cards via SMS. So you can get information about your balance, transactions, and statements via SMS message in 24-hour banking. You can adjust SMS messages that are sent on your own.

PC banking

Offline management of banking accounts and cards. Created for businessmen and legal entities, it supports all types of financial documents, EDS, and provides users with automatic update of clients' data when synchronized to a banking server. it supports teamwork, as well as interacts with accounting programs. PC banking can be divided into two types:

  • Client-bank. Specialists from a credit organization install special accounting software on the user's PCs (giving access to the bank's system, database, manuals, encryption tools etc.);
  • Internet banking systems. Any typical browser is acceptable. Clients may use carriers with personal ID information (smart cards, for example). 
Open a bank account

Offline banking in your PC

So that is what online banking is. But today, if we single out the most popular types of online banking, it will be mobile banking, of course. Every day more and more people are starting to use smartphones and tablets, and the popularity of mobile banking apps is attributed to it's convenience and security. So the origination of mobile-only banking was only a matter of time. Banks without physical branches. It seems unreal, right? It's not. It is a reality of today.

Mobile-only banking: a word about

No branches, no lines, no unfriendly employees! Not enough? Icing on the cake - no pile of papers you have to fill out.!

That is how we can define mobile-only banking. All your funds, all your accounts, and all other personal financial information will only be stored in a virtual environment. Why has this idea turned into reality?

First, think about the colossal reduction of the expenses banks bear today. Renting the premises, armed security, encashment, office equipment, business trips and so on - it is a short list of the main expenses conventional banks bear every day. There is nothing similar in online only banks. Only a special app developed by a skilled software development company and your smartphone.

Digital only banks

Make any payments from your mobile-only bank

Here you can activate your account in seconds without any red tape. Also, you can block or unblock your cards with a few clicks of a button. So all reduction of expenses will directly affect the customer - but only in a positive way.

Pros of mobile-only banking

The main strengths of a new era of online mobile banking can be referred to lower costs as it was described above. But in fact, there are also additional advantages that mobile-only banks can offer their clients:

  • Low-interest loans. Banks can start lending large amount of money to clients' cards with a much lower interest rate;
  • Grace period. Banks can propose a long grace period to pay the loan contribution (up to several months, for example). Such charity is a bank's trick to attract new clients; 
  • Discounts. Users will be able to get significant discounts for something starting from cinema tickets and drugstores to air tickets, hotels, gas stations etc. 
  • The increase of deposits rates. It will be possible to save money in a more beneficial way because new mobile-only banks try to draw as many clients as possible. How is it possible? Offer them advantageous conditions. 

It is worth noting that we listed several possible ways to make use of mobile-only bank. But since this technology is relatively new, banks can change something or add new interesting categories.


Find out the impact of fintech trends. Read How can fintech influence the future of various industries?

Cons of mobile-only banking

If there is an advantage, there must be some disadvantages, right? So, here we can note some of the main disadvantages that mobile-only banking has.

First, it concerns cash withdrawals. Mobile banking is a more profitable option for those who plan to make cashless payments. If you intend to withdraw your money, you will be charged after a couple of transactions. New mobile-only banks like Atom Bank or Fidor Bank allow you to withdraw money twice per month for free, and then you will have to pay a certain percent for each withdrawal.

Second, a mobile bank like B bank gives users a free account only for one year. After one year, the bank will charge users a monthly fee 2 pounds.

However, as in the case with advantages, it is too early to predict what disadvantages this new technology will have in future.

How does mobile-only banking work?

To start working with mobile banking, you won't need to learn something new and adapt to the totally new technologies. Everything here is more than just simple.

Download the app. In the very beginning, you will have to download the app. Some mobile banking apps are already available on both platforms - iOS and Android.

Sign-up. Here it will be necessary to fill in digital application form without any papers. As a standard registration, it can take up to 3-5 minutes.

Account configuration. To make your account secure, you'd better choose a three-factor authorization mode - 6-digit password, a photo of your face and a recording of your voice. Mobile banking security comes first.

Choose your own logo. One of the differences between mobile banking and conventional banks is a personal logo. Atom bank is among the first financial institutions that implement this technology. Here you can create your own logo to become a unique user.

The support team is at your disposal. A completely virtual bank doesn't mean someone won't able to help you if you have some questions. A support team are always ready to help you cope with any troubles you may face while using your account.

You see - there is nothing to be afraid of! However, if you intend to create your own mobile banking app, you should consider the issues listed above.

Mobile-only banking app development - things to consider

It is not an easy job to create a mobile banking app. Despite the fact it takes a lot of time, it also requires a group of skilled developers. And our company can always come to the rescue.

So what do you need to develop it?

Proprietary APIs

If you create an application for mobile banking for one of the already existing banks, you will have to use their APIs. In another case, if you plan to create your first own mobile-only banking app, you will have to get these APIs anyway, since you need to understand and look into them. Otherwise, without a preliminary experience, you may fail to develop the app.

Sandbox environment

No matter if you are a self-employed person or work for a specific bank, you must take care of the sandbox environment to test your future application. This environment isolates your app from any external threats potentially dangerous for the security of your app. Moreover, if your work for the bank, working in the sandbox will be one of the main conditions of collaboration.

Online and mobile banking

Working in sandbox makes it possible to secure your development

Security and encryption

First, you must determine what security features you will use and check the security policy. Keep it in mind - it should obligatorily meet government requirements. After resolving this issue, you'd better install the latest digital signature technologies to make your app more secure. The same concerns encryption systems and tokenization. It is very important. There is no need to repeat many times that you are creating a mobile banking where people keep their money so it's security must not be thrown into question, right?. Yes, and make sure you added password strength checker not to let your user register a password that is too simple. All mobile banking services have this feature.

Attractive UI and UX

As a rule, this clause refers to any app. It should have a golden middle in it's UX and UI. So the app should be simple for future users in order not to confuse them. Minimalistic design, customizable features - your app must have it. Don't put too much information into the app. It must have only the main data.

Test your app

It is important to note - you should test it on as many devices as possible. Why? The problem is that various Android devices can have different features, depending on phone model. So you should consider it all and test many devices to integrate all possible features to get the benefits of mobile banking app.

Compliance with government regulations

And the last one, but not the least, you will have to get a financial license from the government. The app must meet all the government regulations, so for it's release you will have to follow the security policy.

Internet only banks

How to create a mobile-only banking app?


Catch on how to invest using a mobile app. Read Investment app-like Acorns: a detailed how to create guide

Mobile-only banking seems to be something promising. It is rather difficult to say how popular this FinTech trend will be in some time since the technology is very new. But we can add that our company will be glad to help you with a similar project if you are intending to implement it. Drop us a line and subscribe to our blog!

Enjoy our following video:

Payment gateway integration into the app

Rate this article!
An image
An image
An image
An image
An image
(1147 ratings, average: 4.67 out of 5)
Leave a comment
An image
Your message is checked by the moderator and
will add to the site ASAP
Latest articles
Report a typo
Back to top