How Online Banking Drives Profit and Builds Customer Loyalty: Examples and Insights from Our Experience

TL;DR 

• Traditional banks face high customer churn due to outdated services, with 58% of U.S. consumers dissatisfied with their banking experiences. Poor customer service, slow transactions, and security concerns drive customers to digital-only competitors.
• Online banking platforms offer cost savings, 24/7 accessibility, better security, and personalized services. These platforms enhance customer experience and drive profitability by providing easy access to services, cutting overhead costs, and offering competitive rates.
• Three pillars of a successful online banking strategy:
  • Putting the Experience at the Centre: Focuses on delivering an exceptional, seamless, and personalized user experience across all digital platforms, ensuring consistency and ease of use for customers.
  • Refocused Operations on Customer Value: Emphasizes aligning bank operations with customer needs by implementing modular banking systems, data-driven insights, and collaborative teams to enhance agility and responsiveness.
  • Ecosystem Approach and Open Banking: Encourages collaboration with third-party providers and the integration of emerging technologies like IoT, blockchain, and open APIs, creating a dynamic and interconnected financial ecosystem that delivers more value and security to customers.

Success stories:

• Our Case Study: Upgraded online banking led to a 12% revenue increase, 22% higher satisfaction, 30% fewer complaints, and 25% better retention.
• PNC Bank: Achieved a 90% issue resolution rate via asynchronous messaging, reducing the need for in-branch visits. Boasted an 80%+ customer satisfaction rate in customer support through efficient digital channels.

• Bank of America (BoA): Serves 69 million customers globally with a strong emphasis on digital innovation, including Erica, an AI-powered assistant that improves financial management. Delivers personalized banking experiences with a blend of digital and in-person tools.

• Wells Fargo: Grew its mobile banking customer base from 28.3 million in 2022 to 30 million in 2023, a 1.6 million increase. Saw an 11% YoY increase in mobile logins, driving transaction volume growth.

Technologies, Trends, and Strategies Driving the Future of Digital Transformation in Banking

How We Enhanced Online Banking Platform that Resulted in 12% Increase in Transactional Revenue  

Modernizing a financial institution’s online presence can make a huge difference in customer satisfaction and revenue. Here’s how we helped our client that was struggling with retention and loyalty, mainly because their outdated internet banking platform wasn’t meeting customer needs.

Our client’s challenge

• Outdated interface. The online banking system was clunky and difficult to use, leading to frustration and high abandonment rates.
• Lack of personalization. Customers didn’t feel catered to, as the platform offered no tailored recommendations or services.
• Security concerns. The platform had vulnerabilities, shaking customer trust and exposing the system to risks.

Our solution

We built a new online banking platform from the ground up, focusing on improving usability, personalizing experiences, and enhancing security.

User-friendly interface

The new platform offers a seamless experience across multiple devices—whether it’s a smartphone, tablet, or desktop. Customers can now access their accounts anytime, anywhere with ease. We also restructured the platform’s navigation to provide clearer menus and better organization, allowing users to quickly locate the services they need, improving overall efficiency.

Personalization at its best

Personalization is a core feature of our platform. By analyzing customer behavior, the system intelligently suggests relevant products—such as credit cards, loans, or savings accounts—at the perfect moment. Additionally, each customer has the ability to customize their dashboard to highlight the services they use most often for quick, personalized access.

Enhanced security features

We’ve implemented strong authentication methods to provide an additional layer of security, ensuring that customer accounts are protected from unauthorized access. To further enhance security, customers now receive instant notifications for any unusual or suspicious activity, allowing them to take swift action and feel more in control of their accounts.

Support that truly helps

With 24/7 access to quick answers and helpful advice from live chat and AI-powered assistants, customers no longer have to endure long wait times for assistance. Additionally, we’ve simplified complex processes, such as loan applications or account openings, by providing step-by-step guidance, making it easier for customers to complete tasks without stress or confusion.

Business outcomes

• 22% increase in customer satisfaction: Customers expressed strong approval of the new platform through positive survey feedback.
• 30% drop in complaints: The improved, secure system led to fewer customer issues and better overall satisfaction.
• 25% increase in retention: The enhanced platform helped reduce churn and retain more customers over time.
• 40% growth in engagement: Users spent significantly more time interacting with the platform, exploring its features.
• 12% boost in transactional revenue: The rise in online transactions contributed to a solid growth in revenue during the first year.

Your customers deserve a better online experience—and your business deserves the results it brings. Let us help you modernize your platform and achieve success. Schedule a meeting with our team to get started. 

Benefits You Can Expect From Implementing Online Banking Solutions

Opting for a dedicated online banking platform offers game-changing benefits. It allows you to offer competitive fees and better value, creating a win-win relationship of transparency and affordability with your clients.

Brief overview of drawbacks

Despite the significant advantages, online banking has some limitations:

• Limited customer service: Lack of in-person interaction can be a hurdle for complex issues, like loan applications or disputes.
• Technical issues: Occasional app crashes or glitches can disrupt services, impacting customer confidence.
• Dependency on technology: Users without reliable internet access or adequate digital literacy may struggle to use these platforms effectively.

“Online banking’s power lies in its ability to enhance accessibility and security, but success requires addressing digital literacy and service challenges head-on.”

— Maksym Trostyanchuk, Inoxoft’s Head of Delivery

Your future-ready banking platform is just a conversation away. Reach out today to explore how we can make it happen together.

Key Features and Functionalities for Online Banking Solutions

Online banking services have revolutionized the way people manage their finances, making financial transactions more accessible, efficient, and secure. However, in some regions, trust in digital banking has been slow to grow. One such example is Tajikistan, where people were initially hesitant to embrace online financial management. To understand the challenges and the transformative impact of digital banking in such areas, let’s look at the pioneering efforts of Abdullo Kurbanov and his work in changing the financial landscape in Tajikistan.

In a country where cash dominated every transaction, Abdullo Kurbanov saw the potential of digital payments. Starting from scratch, he faced technology failures, market skepticism, and countless obstacles. Yet, with persistence and innovation, his team built Alif, a digital solution designed to simplify banking for everyone. 

From peer-to-peer transfers to bill payments, Alif’s mobile wallet became a trusted financial app, transforming how people in Tajikistan manage money. As the founder highlights:

“To this day, we’re still tackling numerous challenges—both local and global—and continuously experimenting, learning from our failures. From the very beginning, we established seven core values at Alif, one of which is: ‘There’s no progress without failure.’ … Adjust your course if needed, but never stop. Let your failures guide you.” 

Building an effective online banking platform requires features that not only meet customer needs but also drive organizational success. Let’s explore real-life scenarios that demonstrate how key online banking features and functionalities can benefit both your business and your customers, with insights from our Head of Delivery, Maksym Trostyanchuk.

Account management

A customer logs in to their online banking app after receiving a notification about their paycheck deposit. They see their updated account balance, review their recent transactions, and notice a suspicious charge. With just a few taps, they download their account statement to share with the bank’s support team and set up real-time alerts for future account activity.

Why It Matters:

Account management features empower customers with complete control over their finances. By automating alerts and providing real-time access to account information, you can enhance customer trust and satisfaction with your platform.

“With these features, your customers will always be in the loop about what’s happening with their accounts. For you, this means enhanced customer satisfaction, streamlined tasks through automation, increased revenue from higher transaction volumes, and a significant reduction in the risks of fraud. It’s a win-win for both sides.” 

Fund transfers

A small business owner needs to pay a supplier overseas. Instead of waiting for a branch to open, they log into their banking app at 2 AM, transfer funds internationally, and schedule a recurring payment for next month—all in minutes. For a personal user, sending money to a relative across town or paying rent becomes equally seamless.

Why It Matters:

Enabling fast, flexible fund transfers enhances customer satisfaction and drives adoption. Cross-border capabilities and scheduling ensure your platform remains the go-to solution for personal and business banking needs.

“Customers value convenience, and fund transfer features make transactions effortless. For banks, this means more satisfied customers and higher revenue from transfer fees. It’s the cornerstone of modern banking.” 

Bill payments

A busy parent juggling work and family logs in to their online banking app during their morning coffee. They pay the electricity bill, set up auto-pay for their child’s tuition fees, and quickly check their bill payment history—all in under five minutes.

Why It Matters:

Simplifying bill payments helps customers manage their finances efficiently while encouraging frequent use of your platform. This increases transaction volumes and builds customer loyalty.

“Providing bill payment features not only simplifies life for your customers but also builds trust and strengthens long-term relationships with your bank. It’s an opportunity to become an indispensable part of their financial routine.” 

Mobile check deposit

A freelancer finishes a project and receives a check payment from their client. Instead of driving to the bank, they open their banking app, snap a photo of the check, and see the funds deposited securely within hours.

Why It Matters:

This feature eliminates the need to visit branches, providing customers with a highly convenient way to manage funds. It reduces overhead for banks while increasing customer satisfaction.

“Mobile check deposits bring convenience to the forefront, cutting down on branch traffic while giving customers the flexibility they crave. It’s a clear win for banks and users alike.” 

Security Features

A customer receives a real-time alert about a login attempt from an unfamiliar location. They quickly freeze their account through the app, preventing any unauthorized access. Later, they reset their credentials using facial recognition and log in securely.

Why It Matters:

Security is the cornerstone of customer trust. Features like multi-factor authentication, biometric logins, and real-time alerts not only protect user data but also demonstrate your commitment to safeguarding their finances.

“Security features like MFA and real-time alerts aren’t just about safety—they’re about trust. When customers feel secure, they’re more likely to use your platform and recommend it to others.”

Online banking is key to driving customer loyalty and business growth. Let’s work together to create a platform that’s secure, intuitive, and future-ready. Get in touch now.

How to Create a Banking App: A Comprehensive Guide

3 Pillars of a Successful Online Banking Strategy

In this section, we share our vision of building robust, innovative, and customer-focused online banking solutions. These pillars lay the foundation for creating banking platforms that not only meet current demands but also anticipate future trends. To provide further expertise, we will also be sharing key perspectives from our COO, Nazar Kvartalnyi, on how they can drive success today.

1. Putting the experience at the centre

At the heart of every successful online banking strategy lies an exceptional user experience. Customers expect more than just functionality—they want intuitive, personalized, and seamless interactions with their financial tools.

Key Elements of This Pillar:

• Omnichannel banking: Customers should experience consistent service whether they access their accounts through a desktop, mobile app, or even a chatbot. Integrating all digital channels into a unified system ensures they can pick up where they left off, no matter the platform. This is a key benefit of internet banking—it enables continuous access to your accounts, no matter the device.
• Personalization: By leveraging data analytics, banks can provide tailored recommendations for financial products or budgeting tools that align with individual customer preferences. For instance, offering a personalized savings plan to a young professional based on their spending habits is a total win.
• Operational excellence: A smooth user experience requires an efficient back-end infrastructure. By optimizing operations, banks can eliminate delays, reduce errors, and ensure a seamless journey across all channels, leading to better online banking customer service. This, in turn, builds trust and enhances online banking security.

“Exceptional customer experience is all about creating meaningful, frictionless interactions that meet individual needs. Happy customers drive retention and revenue.” 

2. Refocused operations on customer value

The second pillar focuses on reengineering bank operations to prioritize customer value and responsiveness. It’s about aligning internal processes with the expectations of modern banking users.

Key Elements of This Pillar:

• Modular banking: This architecture enables banks to rapidly launch new services, such as instant loan approvals or subscription management tools. Modular systems allow for scaling and adapting with minimal cost and effort.
• Collaborative teams: Silos are the enemy of innovation. By forming small, cross-functional teams that combine IT expertise, product development, and customer insights, banks can accelerate the pace of improvement.
• Data-Driven insights: AI-driven automation and real-time analytics empower banks to anticipate customer needs. For example, using AI to predict when a customer might require a credit increase or flagging suspicious activity before it becomes a problem enhances both service and security.

“Refocusing operations on customer value transforms a bank into a more agile, responsive institution. It’s about meeting today’s demands while staying adaptable to tomorrow’s challenges.” 

3. Ecosystem approach and open banking

As the financial landscape becomes increasingly interconnected, successful banks must adopt an ecosystem mindset. Collaborating with third-party providers and leveraging cutting-edge technologies ensures competitive advantage and customer satisfaction.

Key Elements of This Pillar:

• Open banking: With open APIs, third-party providers can securely access customer data (upon permission) to deliver value-added services. This fosters transparency and creates new revenue streams for banks.
• Infrastructure and security: Cloud-native architectures, combined with strong encryption and cybersecurity measures, ensure that banks operate efficiently while safeguarding sensitive data.
• Ecosystem integration: Partnering with IoT platforms, blockchain networks, and fintech solutions allows banks to create interconnected services, such as automated payments via IoT devices or blockchain-based identity verification.

“The future of banking lies in ecosystems. Collaboration with third parties and integration with emerging technologies transform banks into dynamic financial platforms.” 

Top 16 Latest Mobile Banking Trends To Keep An Eye

Prominent Examples from Banks

Online and mobile banking have transformed how financial institutions serve their customers. Here, we explore how industry leaders have implemented digital solutions to enhance customer satisfaction, streamline operations, and drive growth.

PNC Bank: 90% Issue Resolution Rate, 577% Increase in Messaging Conversations, and 80%+ Customer Satisfaction

PNC Bank has redefined modern banking by blending innovation and convenience through its robust online and mobile platforms. With customer-centric features like “Low Cash Mode®,” the bank helps users avoid overdraft fees by offering smart alerts, extra time, and payment controls for better financial management. 

The ability to easily manage accounts, make bill payments, and transfer funds between PNC and non-PNC accounts provides a seamless experience across devices. Bank’s integration of Zelle allows for quick, secure money transfers, while the mobile deposit feature makes it easier to deposit checks and access funds faster through PNC Express Funds.

One of the most innovative additions to PNC’s offerings is Paze, which enhances online security by allowing users to make purchases without sharing their card details. This feature adds an extra layer of safety to digital transactions, making online shopping simpler and more secure.

PNC’s commitment to customer satisfaction is evident in its impressive performance across multiple metrics. In the J.D. Power 2023 U.S. Retail Banking Satisfaction Study, PNC ranked above the regional average in six key regions, and MarketWatch Guides survey found that 57% of respondents using PNC as their primary bank were extremely satisfied with their overall experience, with 34% reporting moderate satisfaction. The PNC Mobile App itself holds a stellar 4.8/5 rating on the App Store from over 1.5 million reviews and 4.5/5 on Google Play from over 248,000 reviews.

This shift to digital banking has also improved operational efficiency. By reducing dependency on physical branches, PNC has optimized its customer service through asynchronous messaging, allowing 90% of customer inquiries to be resolved without visiting a branch. This innovation has resulted in a 577% increase in messaging volume, demonstrating how PNC is leading the charge in modernizing the banking experience. 

“PNC’s philosophy calls for branches to increasingly be ‘centers of advice,’ rather than places for transactions. The bank’s standard today calls for a small number of tellers, ATMs, and ITMs with remote tellers to handle routine matters.”

— Jeffrey Martinez, EVP and Head of Branch Banking

Bank of America: Successfully Serving 69 Million Customers with a Global Presence

BoA has skillfully blended advanced digital tools with its established physical branches, offering a comprehensive range of financial services that meet the needs of its diverse clientele. Their standout feature is Erica, AI-powered virtual assistant. By providing personalized financial advice, helping customers track spending, find ATMs, and manage bills, Erica enhances the overall banking experience.

Behind the scenes, BoA has optimized its operations with AI and machine learning, leading to impressive results. Customers who engage with Erica are four times more likely to take advantage of personal financial management tools, with over 37 million users relying on Erica for managing finances and tracking spending. Additionally, BoA has streamlined its branch network, reducing the number of physical locations to about 3,700, balancing cost-efficiency with high-quality service.

BoA’s dedication to digital transformation has paid off in customer satisfaction. The bank ranks highest in mobile app satisfaction among national banks, receiving a top score of 710 in the 2023 J.D. Power U.S. Banking Mobile App Satisfaction Study. These advancements in digital capabilities have empowered BoA to consistently engage and serve customers worldwide, creating a modern banking experience that combines efficiency, convenience, and personalized service.

“This past year, digital capabilities were more important than ever to our clients. Our investments in mobile and online channels over the last 10 years, along with new and enhanced capabilities introduced throughout last year, enabled us to deliver more personalized experiences for each client through a balance of digital and in-person tools and services across their entire relationship with us.”

— David Tyrie, Chief Digital Officer and Chief Marketing Officer at Bank of America

Wells Fargo: 30 Million Mobile Banking Customers in 2023, Up from 28.3 Million in 2022

Wells Fargo, a leading U.S. traditional bank, has made significant advancements in online and mobile banking. By continuously enhancing its digital services, the bank is meeting growing customer expectations while driving both engagement and operational success.

Wells Fargo, a leading traditional bank in the U.S., has made significant advancements in online and mobile banking, with its suite empowering customers with secure and seamless financial management tools. The Wells Fargo Mobile App combines convenience with cutting-edge features such as biometric authentication, mobile check deposits, and Zelle transfers, while personalized alerts ensure customers are always in the loop about their account activity.

Wells Fargo’s focus on improving the digital banking experience has driven impressive customer engagement. Over 70% of Wells Fargo’s consumer and small business customers actively use digital channels to manage their finances. The number of mobile active users grew by 1.6 million from 2022 to 2023, reaching 30 million, marking a notable increase in just one year.

These digital enhancements have also resulted in revenue growth. A 11% year-over-year increase in mobile logins has fueled a rise in transaction volumes, reinforcing Wells Fargo’s commitment to a mobile-first strategy. The bank’s digital platform now delivers 1,000 decisions per second, showcasing its ability to handle high transaction activity efficiently and securely.

“The only way to learn is by trying new things. If you do not fail, you will never succeed. We’re not going to be investing in things willy-nilly – the enterprise has to be profitable. We have to try many different things.”

— Danny Peltz, Executive Vice President and Head of Treasury Management

Real-World Impact: Tailored Solutions for Modern Challenges

Our experience with businesses modernizing payment systems exemplifies our problem-solving approach. For instance, we recently assisted a company facing bottlenecks due to an outdated core banking system (CBS) that couldn’t integrate with online payment services. This caused slow payment processing, customer delays, and cash flow issues.

To address this, we:

• Conducted a deep-dive analysis to understand their needs.
• Integrated their CBS with an online payment service, enabling multiple payment methods like cards and e-wallets.
• Automated real-time transaction processing and data synchronization for enhanced accuracy.

And here’s what we achieved:

• Faster payments improved customer satisfaction.
• Automation reduced errors and boosted reliability.
• Streamlined operations supported smoother financial workflows.

Innovate Your Banking Operations With Us

We’re experts in custom fintech solutions, partnering with financial institutions to transform their operations and elevate the customer experience. Whether you’re looking to streamline processes, enhance security, or integrate cutting-edge features, our tailored solutions are designed to meet your specific needs.

We understand the complexities of the financial sector and deliver solutions that integrate seamlessly with your existing systems. By leveraging advanced technology, we ensure your business stays competitive and forward-thinking.

Here’s how we can help you innovate:

• AI-powered fraud prevention: Protect your operations with intelligent systems that proactively identify and prevent fraudulent activity.
• Regulatory compliance: We design solutions to comply with the latest banking regulations, so you can operate with confidence.
• Advanced authentication: Multi-factor and biometric authentication provide robust protection for customer data and transactions.

Let us help you create secure, efficient, and customer-focused systems. Contact us today to discuss your project and start the journey toward digital innovation.

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Conclusion

To build a successful online banking platform, there are three key areas to focus on: delivering an outstanding user experience, rethinking internal operations to prioritize customer value, and embracing the power of open banking ecosystems. These strategies help banks meet current customer demands while positioning them for future growth and innovation.

From our experience as a software development company, we’ve worked with financial institutions to solve the technical challenges of building secure, efficient, and user-friendly banking platforms. We specialize in creating systems that seamlessly integrate across different channels, leverage data to provide personalized experiences, and ensure high levels of security and regulatory compliance. Our goal is to help you modernize your operations while keeping customer satisfaction at the forefront.

If you’re looking to upgrade your banking solutions, we’re ready to help. Whether you need to streamline your back-end systems, enhance your customer-facing features, or implement cutting-edge technologies, our team can provide the support and expertise you need. Reach out to us today, and let’s explore how we can work together to build the next generation of digital banking.