How Much Does It Cost to Build a Fintech App?

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January 3, 2023 Business

By 2030, the total value of the global financial technology market will exceed $940 billion. More than a third of investments will go to the creation and support of banking applications. The main focus will be set on the introduction of advanced technologies. Of course, the cost to develop fintech apps will increase. In this article, we discuss what to consider in particular when evaluating it and planning the development or purchase of a fintech solution.

What affects an app’s cost

The industry is changing its approach to customer service. Financial services are becoming more innovative and personalized. And this means that they become better and more attractive. On the other hand, technical solutions become more complicated, and it takes more time to implement them, so the cost to build a fintech app grows. These are objective processes. And the ultimate cost is always shaped by a number of factors. Which ones exactly?

App type and complexity

The specifics of the application are determined by the audience it is aimed at and the platform on which it is based. For example, an iOS solution usually costs more than an Android solution. But, as a rule, the most expensive pleasure is cross-platform.

An application for consumer finance, such as investment or insurance solutions, can be more complex. It all depends on the goals and objectives of a particular solution. In each case, different amounts of expertise will be required, therefore, by definition, there cannot be a universal fintech app development cost.

Technologies and opportunities

The size and scale of the application depend on its capabilities. And they must meet the expectations of users. The more of them are met, the more difficult the solution is to implement. And it is also important that the functions turn out to be high-performance and always remain so. This requires a proper technology stack, more professionals, and more time. Accordingly, the ultimate cost of fintech applications is changing dynamically.

Tools for implementation

Creating and integrating advanced features requires an experienced team with great knowledge and professional skills. It’s good if you have one. If not, you need to train your own team for a long time or look for trained specialists on the side. In the first case, you can lose a lot of time and money. In the second, the way of cooperation will influence the final fintech application development cost.

The most widely accepted option is a dedicated team hired from somewhere in India or Eastern Europe. This is more profitable because prices there are about half as low as in the US and Canada. In addition, the level of competence of specialists in those areas may even be higher. For example, blockchain app development company offers to implement the most daring ideas at a reasonable cost.

Additionally, you should take into consideration the design of the app. If you lack the required expertise in-house, consider hiring a fintech design agency.

When your product is ready, it needs to be evaluated in terms of market fit. Someone will have to do testing and QA. This work must also be paid, so your expenses will increase even more.

Project valuation

Ultimately, what is the most approximate final cost of a good solution? Market research allows us to present an order of aspects affecting the type and complexity of the application, hence its cost:

Online payments:
- basic ─ from $50 thousand;
- medium complexity ─ up to $90 thousand;
- complex advanced ─ more than $90 thousand.
Banking cross-platform ─ about $300 thousand.
Consumer Finance ─ $300,000
Investment ─ $200 thousand;
Insurance ─ $150 thousand.

All this data comes from open sources. Surely, it may vary depending on a specific case.

Conclusion

Let’s say you’ve managed to create an outstanding app. Customers like it, the number of accounts is growing, etc. But it still needs specialists to deal with its maintenance. This includes hosting, security, chatbot support, etc. This is not much, but over time, users may come with extra requirements, and it will have to be upgraded.

You should also bear in mind that with the inevitable improvement of technology, costs always grow. This is why you need a reliable, trusted partner to collaborate with long-term.