Cost Analysis of Building a FinTech App

The Finance industry has been drastically revolutionized with the advancements in FinTech technology and digital transformation. More and more finance businesses are looking for FinTech app development services to innovate their offerings, business processes, and customer experience. However, not every new business is aware of the cost of building a FinTech app. In this blog, we are going to give a complete cost analysis of building a FinTech app. 

Before exploring the development cost, it’s important to learn about the FinTech market. 

FinTech App Market Overview

 

It has already been predicted that the global FinTech market might reach a whopping $305 billion by the end of 2025. In fact, 2020 was a major year in contributing to the adoption rate of FinTech apps. The Covid-19 pandemic attracted a lot of new investors and technology-driven businesses to invest in FinTech technology. 

Today, FinTech has become a robust sector with innovative technologies like artificial intelligence, API, Blockchain, and more. These are some primary reasons behind the rapid growth of the FinTech industry; 

• The rapid implementation of Blockchain in different industries 

• FinTech has been the ideal solution for improving the financial data security 

• The focus on on-demand services for better convenience 

Cost Analysis of Building a FinTech App with Categories 

FinTech itself is a very broad term that consists of various applications. Moreover, every finance business work at a different pace and goal. Thus, there’s no single FinTech application that can meet the requirements of every finance business.

For this reason, providing an accurate cost of building a FinTech app would be incredibly hard. Moreover, your choice of FinTech app development team has a deep understanding of your purpose, features, and regulations. 

However, in order to get a rough estimate of your FinTech app development project, you should hire the top FinTech app development company. In order to create a bare minimum application with safe, transparent, convenient, and efficient functionalities, you must have a minimum budget of $40,000 and a development timeline of at least 3 to 4 months. 

You can build a basic FinTech application with a simple user interface for a single platform at the cost of somewhere around $30,000 to $50,000. 

However, you will need to spend between $50,000 to $65,000 if you are looking to build an advanced solution with advanced functionalities. 

Type of App	Development Cost
Basic FinTech app	$30,000 to $50,000
Average FinTech app	$50,000 to $80,000
Complex FinTech app	$80,000 plus

However, the above-mentioned stats are just rough estimates. The actual price greatly depends on factors such as API integration, functionalities, platform specifics, app complexity, hourly development rates, development team size, interaction patterns, etc. 

Development Cost According to Different Types of Apps 

These would be the average prices to develop apps according to different types of apps; 

Application Type	Development Cost
Banking app	$40,000 - $70,000
Lending app	$30,000 - $50,000
Insurance app	$45,000 - $70,000
Investment app	$60,000 - $120,000
Consumer finance app	$50,000 -$300,000

If you have the aspirations of adding innovative features and technologies to your application, such as an EMI calculator, predictive analysis, smart insights, credit score, and more. Then, you will need to spend more on the FinTech app development cost. 

Features that Might Affect the FinTech App Development Cost 

There are a lot of internal and external factors that might affect the total FinTech app development cost. However, these are some important features that might also have an impact on developing a FinTech application; 

• Signup and Sign-in Process 

• Transaction details and history 

• Details of banking cards 

• Checkout Process 

• Cashbacks 

• Saving management 

• Accounting settings 

• Biometric authentication 

• Push notifications 

• AI features 

What About the Maintenance Cost? 

You might be only thinking about the development process of your FinTech applications. However, you should also prepare a separate budget for the maintenance of your application. Above all, maintenance and security are two very important components of the banking and financial sector.

Therefore, it becomes important for the FinTech company to regularly update their applications to ensure a guarantee of security measures for the users. This maintenance cost will be minimal for basic FinTech apps. However, you might need to dedicate a separate budget for an advanced app to ensure better security, quality improvements, and user experience. 

Development Approaches and Technologies for FinTech App Development 

The choice of programming language, development tools, and frameworks greatly depends on the nature of the application and its business goals. However, Java, Python, PHP, and GO are some of the most popular languages for developing FinTech apps. 

Even the best FinTech app development company would prefer using these languages in its projects. Moreover, a Blockchain project would require expertise in Go, Java, Ruby, Python, Scala, C++, and C#. 

Generally, we can just categorize the development approaches into three types. Each of these approaches has its own benefits and drawbacks. 

1. Native App Development 

Native App Development is known for building applications for a specific platform such as Android, iOS, Linux, etc. Thus, you are planning to build a FinTech app for the iOS platform. Then, you would require expertise in SWIFT, Apple Xcode, Objective C, and iOS SDK. 

If you are building a native Android app, then you will need expertise with Java, Kotlin, Android Studio, and the Android SDK. However, this approach might not be cost-effective for developing apps and can have a significant impact on FinTech app development cost. 

2. Cross-Platform App Development 

Cross-platform app development is a mobile app development approach that helps businesses in building apps for multiple platforms by using the same codebase. Flutter and React Native are some of the most popular frameworks for developing cross-platform FinTech apps. It is a very cost-effective approach to developing a mobile app. 

3. Hybrid App Development 

Hybrid app development is used for building FinTech apps that work as web applications and native apps on different platforms. In order to develop effective hybrid apps, developers prefer using HTML5 or PhoneGap. This is also a cost-effective approach to building FinTech apps for multiple platforms. 

Building Cost-Effective FinTech Apps with MobileCoderz 

If you want to build a cost-effective FinTech application, then it would be highly advisable to hire a prominent FinTech app development company like MobileCoderz. They have extensive experience in building FinTech apps with cutting-edge technologies.