How Much Does It Cost to Build a Fintech App?

Have you ever split a dinner bill with Splitwise, bought cryptocurrency on your phone, sent money using mobile banking, or planned your budget using an app? Then, you have experienced the convenience of fintech in action. Today, fintech apps have become a part of people's daily lives and changed how we handle money or other asset transactions. According to Statista, the number of digital payment users is forecasted to reach nearly 4.8 billion, while digital assets users to almost 1 billion by 2028. Such a surge of fintech users worldwide is fueling the growth of the fintech industry and the demand for feature-rich fintech apps. 

Due to the complexity of a fintech app, caused, among other factors, by strict security and regulatory requirements, creating one is challenging and requires significant investments. In this article, we will explore what fintech apps are, their types, benefits they offer users and provide you with rough figures about banking app development costs.

What is a Fintech App?

Fintech apps are software designed to manage and digitize financial services. While they are often confused with banking apps, they are not limited to them but cover any software apps that provide financial services or solutions. 

Here are the types of possible fintech apps.

• Mobile or Internet banking apps that provide existing bank customers with control over their accounts and immediate 24/7 access to services and products offered by the bank, such as checking balances and deposits, making financial transactions such as fund transfers, paying bills, etc. Many banking institutions have added additional robust features like obtaining loans or insurance in one application. Some well-known banking apps are Capital One, Bank of America, and Chase mobile banking.

• Payment apps that allow users to send and receive money, pay online or in shops, and manage their finances. Popular payment apps are PayPal, Venmo, and Cash App.

• Personal finance apps that allow users to see their finances in one place, plan their budgets, and track their spending. Popular apps in this category are Mint, YNAB, and Goodbudget.

• Crypto apps, including wallets, exchanges, and payment applications, that allow users to buy, sell, and trade cryptocurrencies and digital tokens like Bitcoin, Ethereum, or non-fungible tokens (NFTs). Popular apps are Coinbase, Robinhood Crypto, and Binance.

• Peer-to-peer (P2P) lending platforms that allow individuals and small business owners to receive personal loans, student loans, and business loans. Popular apps are Prosper, LendingClub, and Upstart.

• Insurance apps that allow users to compare and purchase insurance policies like health, car, and home insurance. Some well-known apps in the category are USAA, Travelers, and Geico.

Why Should You Build a Fintech App?

FinTech apps offer users a number of advantages compared to traditional financial services. The main ones are:

• Easy access: FinTech apps allow users to manage their finances with smartphones or tablets anytime, anywhere. They significantly save time and speed up financial transactions.

• Convenience and speed: FinTech apps usually don't have such a complicated account opening process as traditional companies. Tasks that were once complex and would take days to complete can now be done in a matter of hours or even minutes by making a few clicks on the user's phone. Users can easily register and access financial services such as payments, loans, insurance and trading with just an internet connection. 

• Personalization: FinTech technologies allow applications to efficiently collect and process user data and offer them personalized services.

• Transparency and cost reduction: FinTechs are digital products that usually don't have any brick-and-mortar costs, such as rent, utilities, and staffing. Consequently, many FinTech offerings, such as online banking, investment platforms, and lending services, can provide competitive rates and lower fees. 

• Wide range of solutions. FinTech apps offer a range of services, from digital payments and insurance to investing and financial advice. Often, one app includes several services that allow users to carry out various financial transactions.

• Increased security: While the level of security may vary between fintech apps, most implement strong security features such as encryption and multi-factor authentication to protect user data.

What Factors Affect The Fintech App Development Cost?

Mobile app development costs, in general, depend on many factors that we have already discussed in our previous articles. And they are equally applicable for creating fintech apps. The main factors are:

The location of the development team and method of development: Among the most significant factors affecting the cost of an app development is how you will develop an app and who will do it. While there are no-code app builders that allow the development of mobile apps that can be deployed on app stores, they are suitable for developing simple mobile apps with relatively low functionality and complexity, such as a simple shopping app. However, when it comes to fintech apps, which involve sensitive financial transactions and data, they often require advanced features and robust security measures that may not be easily achievable with no-code app builders.   

So, when creating a fintech app it is better to attract professional software development companies. The cost of software development will significantly depend on the team you choose and their location. In 2024, the approximate hourly charges for software development across different regions are as follows:

• North America (USA, Canada): $75-$125 per hour

• Western Europe (Poland): $45-$100 per hour

• Eastern Europe (Ukraine): $25-$55 per hour

• Asia (India, China): $20-$60 per hour

• Latin America (Argentina, Brazil): $20-$60 per hour. 

App Functionality: An app's functionality directly influences the development cost. However, various fintech apps require different functionalities and the features of an insurance app will be different from those of a personal financial app. Besides, the more functions the app has, the more advanced they are, and the longer and more expensive the development process will be.  

Some fundamental functionalities for almost any fintech app are customer sign-in/registration into a user profile and user profile management to add and edit their details, username, bank account, payment wallet, etc. Updates and notifications about transactions, discounts, renewals, and reminders are also important basic functionalities of any finTech app. Data analytics with clear representation of account information in charts, percentages, and infographics will make the data visible so users can check their withdrawals, investments, and savings. Besides, Fintech apps require various security features to protect user data and transactions. It may include biometric authentication (fingerprint or facial recognition), two-factor authentication (2FA), encryption of sensitive information, and fraud detection mechanisms. etc.

Additional features may include using virtual assistant features like AI chatbots to help customers solve common queries, personalized recommendations using ML-driven algorithms, integration with third-party services, or incorporation of blockchain technology to improve the security, transparency, and efficiency of financial transactions. 

Development platform: Just like apps in other domains, fintech apps can be developed for iOS and Android. The Android platform has more users, but it takes longer, and it is more expensive to develop such apps as they need to be tested on different Android phone models. Choosing to develop for one of these platforms will limit the app's potential users. At the same time, developing for both platforms can significantly increase costs. Cross-platform development using frameworks like Flutter and React Native has become a popular solution for creating an app with one code base suitable for both Android and iOS platforms without doubling the costs. 

App Design: Despite the complexity of the fintech apps, the app's interface must have an extremely low barrier to entry as they are used by a wide range of users with varying levels of technological proficiency. Often, creating an app that is intuitive and user-friendly can be a real challenge. Still, experienced UI/UX designers make it easier to create user-friendly apps that are easy to navigate, visually appealing, and keep users engaged. 

It is worth mentioning that, just like with any other app, developing an app is just the beginning of the journey. It's equally important to consider maintenance and updates and not to overlook marketing expenses. The estimated cost of maintaining a fintech app is 20-30% of your initial investment plus expenses for annual regulatory compliance.

So, how much will it cost to build a fintech app?

The average cost of developing a FinTech app ranges from $30,000 to $300,000.

Based on the app's complexity, here are some rough estimates:

• Basic fintech app: $30,000 - $70,000. These can be simple payment apps that allow users to send and receive funds, pay bills, and check transaction history, or a basic budgeting app that helps users track expenses, set savings goals, and view spending trends.

• Moderate fintech app: $70,000 - $150,000. These can be a relatively advanced mobile banking app that offers features like account management, fund transfers, bill payments, and transaction categorization, or a Peer-to-Peer Lending Platform that connects borrowers with lenders.

• Complex fintech app: $150,000–$500,000+. These can be complex trading platforms that enable users to trade stocks, cryptocurrencies, and other financial instruments. They can also be apps built on blockchain technology for decentralized finance (DeFi) purposes, such as decentralized exchanges (DEXs) and asset management platforms.

Based on the type of the app the average cost range is:

Banking Apps - $30,000 and $300,000+

Payment Apps - $30,000 and $100,000+

Crypto apps - $30,000 and $200,000+

Insurance Apps - $40,000 and $200,000+

Personal Finance Apps - $30,000 and $150,000+

Peer-to-peer (P2P) Lending Apps - $40,000 - $150,000

Here is the breakdown of approximate possible costs based on development phases: 

• App design cost - $10,000 – $100,000+

• App development cost - $20,000 - $300,000+

• Integration of security measures - $10,000 - $100,000+

• Regulatory compliance - $20,000 - $50,000, then 50% of the initial cost annually

• Maintenance and upgrades - 10-15% of the development costs annually

• Marketing and promotion cost - depends on the marketing strategy

Conclusions:

The costs of developing a fintech app can be quite high because of its complexity, regulatory and security compliance, and advanced app features. On average, the cost ranges between $30,000 and $300,000 and even more, depending on the factors discussed earlier in this blog. However, with the advancement of technologies, financial services can no longer stay traditional and must adapt to keep up with the evolution and deliver digital banking experiences that meet the growing demands of customers in an increasingly digital world.