Fintech App Development Cost

What is a Fintech App?

The term Fintech is rooted in the words Finance and Technology. If you are still getting to grips with this concept, allow us to provide a short revision. The Fintech Revolution involves leveraging banking and financial services via technology. The explosive growth of Fintech is attributed to its promise of customer convenience, security, and fair distribution among users.

Notably, most of us are active participants within this sector through our involvement in payment platforms like PayPal, RazorPay, and even Amazon Pay or Apple Pay. Furthermore, the entire realm of cryptocurrencies operates with Fintech as its main facilitator. Additionally, the apps through which you invest in stocks or bonds are often Fintech apps!

The total Fintech app development cost is quite low in comparison to the profit it ends up generating. Hence, more and more people are investing in Fintech app development companies by purchasing shares and sometimes, by building their own banking app. Fintech app development cost will depend on a couple of variables. 

In this article, we’ll answer- How much does it cost to build a Fintech app? We’ll also look into common questions and myths surrounding this subject. 

Factors behind the Fintech App Development Cost 

There are some fintech mobile app development cost factors which are very particular to the Fintech industry, along with the kind of app you wish to create. Below is a list of the most common factors that will affect the total cost to build a fintech app! 

• Regulatory Compliance: Meeting financial regulations and security standards involves additional costs.

• Testing and QA: Thorough testing adds to expenses.

• Development Team: Skilled developers and location affect rates.

• Scalability: Planning for growth can affect initial costs.

• UI/UX Design: Complex design and user testing impact development costs.

• Third-Party Integration: Integrating external services can raise expenses.

• Platform and Devices: Developing for multiple platforms and ensuring compatibility increases expenses.

• Vendor Selection: Different vendors have varying price structures. This basically refers to the price structure of different fintech app development companies.

• Security: Implementing robust security measures adds to development expenses.

• App Complexity: The more features and functionalities, the higher the cost.

• Marketing and Launch: Promoting the app requires a marketing budget.

• Project Timeline: Rushed development can be costly. Similarly, you have to consider extended labour costs, the time you will invest in quality control and other overhead costs.

• Maintenance: Post-launch support is an ongoing cost.

• Data Storage and Processing: The total volume of data storage and complex or simpler processing requirement.

Let us go over two common cost factors in brief:

1. App Complexity and Design 

For design of an app can cover almost the entire structure and features within the app. The design includes customizations, AI support, etc. However, mostly we talk about functionality when talking about design. Within complex functionality you get real time data processing, services based on location, etc. These will naturally increase development efforts and costs. Some apps may require integration with other hardware systems like Camera, Microphone, etc. These also lead to additional development cost. 

2. Compatibility and Security 

If you're looking to develop an app that has to be compatible with multiple platforms. For instance, global apps tend to target both Android as well as iOS users. This is very common for apps like Amazon Pay. Since you are building a financial app, it will handle sensitive user data. Even a slight breach of payment information can escalate into a larger issue. Hence, the kind of security you offer on your app will greatly orient the total app development cost. 

• And iOS payment app development takes about 900 to 1300 hours in development. The payment app development cost ranges between $30,500 to $32,500 as per the platform. 

• P2P payment apps that are based on Androids take 800-1200 hours (about 1 and a half months) in development. These cost between $12,000 and $30,000 per platform.  

• Cross-platform P2P apps take between 1000 and 1350 hours in development. These will cost you anywhere between $15,000 and $33,750. 

Estimating the Cost of Your App Based on the Type of App 

If you have come this far, you must already have a structure or digital elements in mind for your app. In general, there seems to be quite a range of applications that easily come under the command of Fintech. For instance, peer-to-peer apps, Insurtech apps, personal finance and credit score management apps, Real Estate apps, crowdfunding apps, Crypto wallets and exchanges, etc. 

Evaluating all of these will be out of the scope of this article, so we will look into some benchmark apps and archetypes to analyze the cost of development. 

1. Mobile Banking Apps like Chase Mobile: Apps like Chase Mobile come with a high degree of sophistication. Hence, these can easily go up to $100,000 and several million dollars. As mentioned earlier, this will depend on the complexity of features, Charity, customer, convenience, etc. 

2. Wallet apps for payments like Apple Pay or Amazon Pay: These will cost you around $200,000 to $500,000. These apps will require integration with other payment gateways as well. Hence, it will depend upon how large of a web you wish to build. 

3. Investment Apps like Robbin Hood: Robin Hood is a stock trading and investment app. These are also relatively costlier. Thus, you should be ready to invest around $200,000 or more into such apps 

4. Peer-to-peer apps like Venmo: P2P apps are rather famous within fintech. Moreover, these are not very expensive, and their development will cost around $100k to $300,000.  

5. Personal finance management apps like Mint: Personal finance management apps are customized as per a particular audience. However, this can later branch out into wider demographics. You can expect to invest around $150,000 or $400,000 in such apps. 

6. Crowdfunding platforms like Kickstarter: A good quality crowdfunding app with cross-platform and API development will easily cost at least $100,000 or more. 

7. Regtech Apps: These will need an investment between $50,000 and $120,000. 

How to Manage App Development Cost? 

Running a Fintech app can be very lucrative, if you are able to manage the developmental costs. Below, we list down some factors along with some tips that can help you strategize for better cost management- 

1. Geographical Location: 

App development teams in North America as well as Western Europe have high labor costs. Following this, we have Eastern Europe, that has relatively lower hourly rates. Asian countries like India, China, as well as Philippines have lowest hourly rates when it comes to development teams. 

2. App Developers 

If you are thinking of developing the entire app on your own with the help of in-house developers, get ready to spend some big bucks. Hiring your own team of developers is one of the costliest methods to create an app. However, it comes with many pros as well. For instance, everything is done under your administration, there is higher transparency, you get greater control, immediate updates, etc. Luckily, you can still avail these benefits by hiring freelancers while reducing your fintech app development cost! You will have to handpick freelancers for specific features, and you can easily find them on platforms like Upwork. 

3. Hidden Development Costs- 

Despite perfect strategizing, many hidden development costs emerge during the app building process. This includes back end infrastructure like server hosting, database management, integration with third party services., etc. Additional security features like two factor authentication and mutual TLS Verification will also incur extra costs. Costs will increase if you distribute your app through famous App Stores like Google Play, Microsoft App Store, Apple App Store. 

4. Maintenance Costs 

Maintenance costs for any app requires special attention. This is because the app maintenance cost is usually 15% to 20% of the original cost of development. Thus, if you can simplify your maintenance procedures, you will be able to avoid unnecessary expenditure. Generally, maintenance includes fixing bugs, ensuring user security, updating your software and servers, etc. Inability to deal with day-to-day maintenance can lead to dissatisfaction among the users or a sudden downfall of your application. 

Bonus- Cost Breakdown of a P2P Payment App  

Now, this might come as a bit of a surprise to people who are still learning about the fintech industry. However, there are further categories under different types of Fintech apps. For instance, in simple P2P payment app types, we must take payment methods, international transactions, card linkage, and other factors into consideration. Depending on this, we will get different types of P2P apps and their investment costs will vary as well.  

• Basic Features (2-3 months, $25,000 - $35,000): Includes user registration, authentication, payment tracking, and basic payment functionality. 

• Intermediate/Advanced Features (4-7 months, $35,000 - $45,000): Adds multiple payment methods, international transfers, bill payments, and card linking to basic features. 

• Highly Advanced/Complex App (8-12 months, $50,000+): Includes digital wallet, virtual card, loans, loyalty programs, charts, virtual assistance, and robust financial data management.

Cost of Development Teams: 

• An in-house team will cost you $200,000. On the other hand, a US local team will cost you $300,000 for a P2P app. Your Fintech app development costs can be lowered to near $60,000 if you hire only freelancers. 

• Similarly, the cost will also depend on the region where your development team is based. Countries like the US and Australia will cost you between 200,000 and $300,000. But I development teams in the Dubai that can cost you around $120,000. To conclude, Eastern Europe and South Asia are the cheapest with $75,000 and $55,000 in investment cost, respectively. 

Fintech App Development Companies 

Some of the best-known Fintech app development companies include:

1. Plusonetech: Plusone Technologies is an offshore IT firm. The firm has an excellent record with global clients like AppFutura, Clutch, and many upcoming digital start-ups. With a team of 20+ skilled IT experts, the company is known for its strong engineering capabilities. It has offices in London and Austria. Taking their focus beyond coding, they aim to create user-friendly, profitable products. 

2. Appinventiv: Appinventiv is a leading fintech app development company. Their specialization lies in the creation of secure, scalable, and innovative solutions. They are known for crafting meticulous, custom Fintech apps. Services they offer include- mobile app development, blockchain development, app maintenance, etc. 

3. Fingent: Fingent is a well-known company for having created a variety of custom software solutions. They have famously ventured into healthcare, finance, and recently AI. This is a relatively older company and has over 500 employees and tech experts. Hence, you will find that their services are slightly expensive. 

4. Stripe: Stripe was founded in 2010. Currently, the company has its headquarters in San Francisco, CA. They are well known for the online payment processing solutions that they provide for businesses. 

Conclusion  

It takes a good amount of time to familiarize oneself with the inner workings of the fintech world. Although, such apps have been functioning in public for a very long time, individuals have only now begun to use them for personal endeavors. And the article above, you will find the most basic concepts surrounding Fintech app development cost, procedures, etc. For further inquiries, don’t forget to leave your comment below!

Frequently Asked Questions- 

What are the different stages of app development? 

The different stages of app development include planning, design, development, testing, and deployment. Planning takes about 10% of the total cost, while design takes about 15% of the total cost. Absolutely, The most important fraction of your investment includes actual app development. This will take almost 60% of your total cost. The remaining two stages take up about 15% of your total cost/investment. 

Are FinTechs Profitable?

FinTechs happen to be some of the most profitable apps in function today. Since they incorporate numerous elements like AI, open banking, IoT integration, there remains infinite scope for creativity. Moreover, they have a healthy retention rate, leading to consistent profits.

How fast is Fintech Growing?

As of September 20, 2022, it is reported that the global fintech (financial technology) market, which was valued at approximately $110.59 billion in 2020, is projected to experience a compound annual growth rate (CAGR) of 20.5%. This growth is anticipated to lead to a market size of $699.50 billion by the year 2030.