How Much Does It Cost to Build a Fintech App?

Whatever industry you work in, whether it be a financial investment company, a credit company, or any banking sector, Fintech app development is very popular. When a business owner develops a banking app like Fintech, he or she thinks about the costs associated with its development.

Fintech App Market Growth

Before we get into the nitty-gritty of the cost of developing a fintech app, let's first look at the current market scenario.

Fintech combines finance and technology. In business, this term is referred to as Fintech. Essentially, it refers to companies that use technology to improve or automate financial services and operations. Fintech is a rapidly growing industry that is disrupting traditional financial services. Consumers and businesses alike benefit from this rapidly expanding sector. Fintech includes cryptocurrencies and investing apps as well as mobile banking and insurance.

In 2021, there were $197 million digital banking users; by 2025, that number will rise to $217 million, and FinTech is predicted to reach $700.50 billion by 2030. This growth is driven by the increasing demand for digital banking and payment solutions, as well as the rise of mobile devices and internet penetration.

Fintech has transformed the financial services sector, enabling it to become a multibillion-dollar industry. A significant part of the industry's growth is driven by its revolutionary technology, which allows financial institutions to offer cutting-edge services.

In such a scenario, developing a fintech app could be a worthwhile business idea. But before you start, it's essential to understand the cost of finance app development.

Types Of Fintech Apps and Cost Estimates

App development costs vary depending on the type of application. There are various types of Fintech banking apps such as lending apps, insurance apps, banking apps, investment apps, and personal finance apps. Let's look at these in detail.

Lending Apps

Nowadays, peer-to-peer lending apps are growing rapidly. Businesses pressure people to apply for loans online. This platform uses technology to offer customers financial support with accuracy. It speeds up the loan process despite high risk.

Artificial intelligence and machine learning approaches are used by intelligent systems that verify credentials in order to generate error-free outcomes.

When technology is employed in loan operations, it is easier to estimate income predictions, evaluate the borrower's history, calculate the value of the collateral, and expect changes. FinTech lending apps range from around $55,000 to $170,000.

Insurance Apps

FinTech insurance companies are working to transform their existing services. FinTech insurance apps can provide coverage insurance at changeable prices.

It is possible to make an application for consumers or agents can be made by an insurance provider. When an insurance app is installed, the end user can access policies from several different insurance companies. It facilitates easier communication. The user can process claims faster, which leads to expedited contract completion. Insurance FinTech apps can be developed between $50,000 and $200,000.

Banking Apps

Digital or Internet banking programs provide access to all financial solutions online. Everything, including opening an account and requesting loans, can be done online. Due to FinTech banking applications' ability to resolve issues, users no longer need to visit a branch for every problem. Depending on its complexity, FinTech banking software costs anywhere between $35,000 and $270,000.

Investment Apps

Fintech Investment applications offer a variety of services. This kind of investing software is offered by some big companies like mutual funds, to their target audience. Cryptocurrency exchanges, trading programs, etc., are other investing solutions. FinTech investing apps cost between $62,000 and $128,000.

Finance and Personal Apps

Personal finance applications enable users to easily manage their accounts. People may monitor their income and expenses, set a budget, and follow it. These applications work as personal diaries for recording financial transactions. FinTech app development companies normally charge between $50,000 and $300,000 to create a personal finance app.

Cost of Building a Fintech App

Several factors can influence the cost of developing a fintech app. Let's look at some of the most important ones.

Complexity of the App

The complexity of your fintech app is perhaps the most significant factor that influences its cost. The more complex the app, the more time and resources it will take to develop it. A fintech app with basic features like account management and bill payments will be less expensive to develop than an app that incorporates complex features like real-time trading, investment analysis, or AI-based recommendations.

App Platform

The platform you choose for your fintech app can also influence cost. Building an app for a single platform like Android or iOS will be cheaper than building for multiple platforms simultaneously. However, if you want to reach a broader audience, you'll need to develop for both platforms, which will increase the cost.

Design and User Experience

Design and user experience are critical components of a successful fintech app. Users want intuitive, easy-to-use, and visually appealing. Developing a great design and user experience requires a skilled design team and thorough testing, which can increase the overall cost of the app.

Development Team

The development team you choose for your fintech app will also influence the cost. Hiring an experienced team with expertise in fintech app development may cost more, but it will ensure your app is developed to the highest quality standards.

Cost of Fintech App Development

Based on the factors mentioned above, the cost of developing a fintech app can range from a few thousand dollars to several hundred thousand dollars. A simple fintech app with basic features like account management and bill payments can cost between $5,000 and $20,000. However, a more complex app with advanced features like real-time trading, investment analysis, or AI-based recommendations can cost upwards of $100,000.

The cost of developing a fintech app can also vary based on the hourly rate charged by the development team. This typically ranges from $75 to $200 per hour. Development time can also vary depending on the complexity of the app, with a simple app taking anywhere between 2 to 6 months to develop, while a complex app can take up to a year or more.

Conclusion

A fintech app is a costly endeavor, but if you plan ahead and have the right knowledge, it will help you make the best use of your investment. App complexity, platform, design, and the development team all influence the cost of fintech app development. Do your research and understand the costs involved before you start your fintech app development journey.

Is fintech app development something you're interested in? Just make sure you're equipped with the knowledge to make it a success! And that's where we can help you. Connect with us to know more.