Mobile Banking App Development for Indian Banks vs NBFCs
- Arpan Desai
- 22 hours ago
- 5 min read
Updated: 7 hours ago
If you’re planning a digital finance product in India, it’s easy to assume a “mobile banking app” is the same thing for everyone—login, balances, transfers, offers, done.
But the truth is: a bank app and a banking app for NBFC India are built for different jobs, run on different rails, and carry different compliance + risk responsibilities.
Banks are designed to hold money (deposits), move money (payment rails), and service customers across a wide range of regulated products. NBFCs are designed to lend and manage credit products—and while they can deliver a bank-like experience, they don’t operate exactly like banks (for example, NBFCs cannot accept demand deposits and don’t sit inside the payment & settlement system the way banks do).
This guide breaks down what changes in product scope, integrations, compliance, and architecture—so you can build the right thing (and avoid costly rewrites later).
Quick reality check: Banks vs NBFCs (why the app is different)
RBI’s own FAQs explain a few core structural differences between banks and NBFCs-like NBFCs can’t accept demand deposits and don’t form part of the payment and settlement system (and therefore can’t issue cheques drawn on themselves).
That one point alone changes what your app can (and should) offer “natively.”
What this means in app terms
Area | Bank Mobile App | NBFC Mobile App |
Primary purpose | Daily banking + payments + full relationship | Credit products (loans/credit lines) + servicing |
“Core system” | Core Banking System (CBS) + payment rails | LOS/LMS + collections + partner rails |
Payments (UPI/IMPS etc.) | Often native via bank rails | Usually via partnerships/rails (varies by model) |
What customers expect: Bank app vs banking app for NBFC India
1) Bank apps are “everyday money” products
A bank’s mobile app typically needs to cover:
Savings/current accounts, statements, interest certificates
UPI, IMPS/NEFT/RTGS, bill pay, cards, dispute workflows
Digital onboarding + servicing journeys (change address, nominee, etc.)
Strong info-sec controls—RBI has emphasized that mobile banking tech must ensure confidentiality, integrity, authenticity, and non-repudiability.
2) NBFC apps are “credit-first” products
Most NBFC builds are closer to a digital lending app NBFC pattern:
Loan discovery + eligibility + offer generation
KYC + bureau + income verification
E-sign + eNACH/e-mandate repayment setup
Disbursement + repayment schedules + reminders
Collections, support, restructuring, foreclosure, NOC, etc.
That’s why search intent often looks like:
nbfc loan app India
instant personal loan app
best NBFC apps India
RBI approved loan apps (we’ll clarify this below)
Compliance is not a legal checkbox-it changes the product UX
Digital lending rules: your flows must match RBI’s expectations
RBI’s digital lending framework has evolved—from the 2022 digital lending guidelines (and FAQs) to the Reserve Bank of India (Digital Lending) Directions, 2025.
Even if you’re “just building an app,” these rules shape your money movement, disclosures, and partner models.
A few practical implications (high level):
Disbursement/repayment routing and transparency expectations are stricter (design your payment screens accordingly).
If you operate via LSP-style partnerships, the regulated entity still holds responsibility (so audit trails, logs, and grievance flows matter).
The RBI approved loan apps
Many people search “RBI approved loan apps”, but RBI doesn’t “approve an app” the way an app store approves listings. What RBI has done is create a public directory of Digital Lending Apps (DLAs) deployed by Regulated Entities, to help customers verify whether an app is actually linked to a regulated lender.
RBI (and Government channels) have also cautioned users against unauthorized digital lending platforms/apps for years—so trust + verification is part of your product story.
“How to verify if a loan app is linked to an RBI-regulated entity (instead of assuming it’s ‘RBI approved’).”
Architecture: the integration map is totally different
Bank app integration map (typical)
CBS + customer profile + account ledger
Payment rails orchestration (UPI/IMPS/NEFT/RTGS), limits, fraud engine
Cards (debit/credit), disputes, chargebacks
Strong monitoring + resilience (because outages can lead to regulatory heat)
RBI and media reporting has shown RBI can impose operational restrictions tied to IT governance and digital channel weaknesses—so banks treat reliability and controls as non-negotiable.
NBFC app integration map (typical)
For a banking app for NBFC India, your “core” is usually lending + servicing:
LOS (Loan Origination System): application → underwriting → offer
LMS (Loan Management System): schedules, repayments, interest, NPA logic
KYC & onboarding: eKYC/V-CIP, document vault, consent flows
Bureau + income verification + bank statement analysis
E-sign + e-mandate setup
Collections stack: reminders, channels, field collections workflows
Grievance & compliance: disclosures, KFS storage, audit logs
Practical rule: If your NBFC app is trying to look like a bank app, you still need a clean separation:
“Credit module” (NBFC-owned)
“Payments & account rails” (partner/regulated rails, as applicable)
“Data & risk” (centralized monitoring + policy engine)
UX differences that actually matter (and impact conversion)
Banks: trust + speed + low friction
Bank customers expect:
Fast login + stable uptime
Predictable transfers + instant support
Consistent UX across products (accounts, cards, investments)
NBFCs: clarity + fairness + confidence
NBFC borrowers expect:
“Do I qualify?” in under 60 seconds
Transparent fees (no surprises)
Simple repayment experience
Respectful collections + easy closure
If you’re building an instant personal loan app, your UX must be ruthless about clarity: EMI, APR/interest, fees, cooling-off/foreclosure rules (as applicable), and “what happens if I miss a payment.”
Build plan: how we approach it at FintegrationFS
FintegrationFS builds fintech products across banking, lending, wealth, and payments-often involving third-party API integrations and compliance-minded engineering.
Phase 1: Product + compliance mapping (1–2 weeks)
What you are: bank vs NBFC vs LSP vs hybrid
Feature scope locked to what you can legally/operationally support
Integration map + “rails ownership” clarity
Phase 2: UX that matches the institution type (2–3 weeks)
Bank app flows ≠ NBFC app flows
Borrower disclosures and consent screens designed upfront (not patched later)
Phase 3: MVP build (6–10 weeks)
Core onboarding + servicing
Core integrations
Observability + audit logs from day one
Phase 4: Hardening + scale (ongoing)
Security reviews, performance, monitoring, incident response patterns
Partner onboarding playbooks, support ops, and analytics
Common mistakes to avoid (especially for NBFC apps)
Copying a bank app UI and “adding loans”
Underestimating disclosure + consent UX
Weak audit trails (painful during reviews/partner onboarding)
Treating “RBI approved loan apps” as a real label instead of verification via regulated entity/DLA directory
Building payments as an afterthought
FAQs
1) Can an NBFC build a “mobile banking app” like a bank?
Yes—but it won’t be the same thing under the hood. Banks operate deposit and payment rails differently, while NBFC apps are typically credit-first and rely on specific lending + servicing infrastructure.
2) What’s the biggest feature difference between bank apps and NBFC apps?
Bank apps are built for accounts + payments as a daily habit. NBFC apps are built for loan journeys—eligibility, disbursement, repayment, and servicing across the full loan lifecycle.
3) How do I build a compliant digital lending app NBFC experience?
Start with flows that support transparent disclosures, proper consent capture, clean disbursement/repayment routing, and auditable records—then build integrations around that. RBI’s digital lending framework is a key reference point.
4) Are there really “RBI approved loan apps”?
People search that phrase a lot, but the safer framing is: verify the app’s association with an RBI-regulated entity. RBI has enabled a public DLA directory to help users verify this linkage.
5) If I want to rank for “best NBFC apps India,” what should my blog emphasize?
Don’t just list apps. Teach readers how to evaluate trust: regulated entity linkage, transparent pricing, clear repayment flows, data permissions, and grievance redressal—because RBI and Government bodies have repeatedly warned about unauthorized lending apps.
