Fintech App Development Costs in 2023–2024

FinTech has a clear advantage over traditional financial services with advanced technology and reduced costs. Online banking, digital wallets, automated investment management, and cryptocurrency trading make it more accessible. 

The FinTech market is set to reach $699.5 billion by 2030. Besides, the number of digital banking users in the US alone is expected to be 217 million—80% of the population—by 2025.

With six years of experience, Arounda helps Fintech startups and SMEs design, develop, and launch innovative solutions, prioritizing compliance, security, and UX requirements. In this article, we predict the cost of developing a FinTech app for 2023 and 2024. So, stick around to get all the details!

FinTech App Development Steps

Before asking about the cost of developing a FinTech product, it is necessary to know how to develop a FinTech App and its main stages. This knowledge is helpful for budget planning and making informed decisions throughout the process.

Understanding the Scope

Gaining insights into the project's scope and complexity is vital for effective planning. It helps you assess the effort and resources needed for each step. 

This knowledge helps you identify the necessary functionalities, target audience, and regulatory considerations for your FinTech product.

 App design

The app design stage focuses on creating an attractive UI and delivering a smooth and engaging UX. It involves wireframing, prototyping, and designing the app's layout, navigation, and interactions. 

MVP development

In the MVP development stage, developers implement features based on project requirements and integrate technologies and frameworks for optimal app performance. Robust security measures are needed to safeguard sensitive financial data. The MVP represents the product's core features and value proposition as a foundation for future development.

Testing

During the testing stage, the team conducts a comprehensive quality assurance process to ensure the developed MVP is reliably free of bugs and functions. Testing helps identify and resolve issues, resulting in improved app stability.

Deployment

After successful testing and quality assurance, the app is ready for deployment. The development team optimizes the app for iOS, Android, or both platforms. It sets up the necessary app store listings, certificates, and configurations to ensure a smooth release.

The deployment process also involves server setup, database configuration, and integration with third-party services.

Maintenance and update 

After deployment, the app requires regular maintenance and updates. The development team collects user feedback and analytics to identify areas for improvement and gather new feature requests. 

The app enhances existing features, introduces new functionalities, and addresses performance or security issues through regular updates. This iterative process ensures the app stays relevant, secure, and scalable, aligning with user needs and industry trends.

Factors Affecting FinTech App Development Costs

Calculating the cost of FinTech App development is a complex process influenced by various factors. Some key elements and features that impact the budget include:

Product Requirements

The app requirements are the first component that affects the cost of developing a FinTech app. There are two aspects to app requirements, which are:

• The scope of work. The collection of features and the effort required to develop them determine the extent of work. The size of the project and the number of development hours increase proportionally to its scope.
• The level of product complexity. The complexity of the software product's concept impacts development, testing, and deployment efforts. More sophisticated logic and concepts increase the difficulty of the project.

Interactive UI/UX

A user-friendly interface is crucial for a successful financial app, enhancing the overall user experience. Developing the best digital banking UX requires a holistic approach to design and usability, including intuitive navigation, clear information architecture, and efficient task flows for a seamless user experience. Attention to these design elements greatly contributes to the app's success.

Location of the Development Partner

The location of the development company influences FinTech app development costs. The hourly rate of a team of four or up to seven specialists and the time required to develop the app vary in different countries. 

For example, US-based app development specialists generally command higher rates, averaging around $53 per hour, while their counterparts in Ukraine typically charge approximately $16 per hour.

Time Required for FinTech App Development

The project's delivery time significantly impacts the cost. Shorter delivery timeframes need increased teamwork, leading to higher prices. The type of mobile app developed also influences the total time.

App Maintenance

It is essential to consider maintenance costs. Custom financial app development is an ongoing process that requires regular upkeep and updates. This maintenance and adding new features and functionalities also contribute to the price.

FinTech Apps: Types and Cost Estimation

Unlock the realm of FinTech apps and delve into their diverse types and estimated costs. Explore the cutting-edge solutions revolutionizing the financial landscape and find the ideal FinTech app to empower your business. 

Banking Apps

Digital or Internet banking applications offer comprehensive online financial solutions, eliminating the need for branch visits. FinTech banking apps handle various tasks, from account creation to loan applications. 

The cost of developing a FinTech banking app varies based on complexity, ranging from $30,000 to $300,000.

Lending Apps

The P2P lending industry is rapidly growing, with companies facilitating digital loan applications within specific limits. Despite the associated risk, this streamlined process leverages technology to provide faster and more accurate financial solutions. 

FinTech loan app development costs range from $50,000 to $150,000.

Personal Finance Apps 

Personal finance apps enable customers to manage their finances seamlessly. They can track their income and expenses, create budgets, and ensure adherence. These apps function as personal financial journals, recording all financial transactions. 

The cost of developing a unique finance app through a FinTech application development firm usually ranges from $50,000 to $300,000.

Insurance Apps

Insurance-related FinTech companies embrace digital transformation to enhance services and provide affordable coverage through adjustable-rate apps. Carriers develop apps for clients or agents, enabling access to policies across different lines through the installed insurance app.

For example, our team worked on the Player's Health insurance platform, delivering a streamlined user flow for purchasing policies and ensuring faster claims processing and prompt deal closure. 

Developing an insurance FinTech app typically ranges from $45,000 to $200,000.

Investment Apps

Some businesses may have investment software explicitly designed for their target users. Other examples of these investing solutions include trading applications, cryptocurrency exchanges, and more. 

Expect the development cost of a FinTech investment app to range from $60,000 to $120,000.

Summary

The cost of developing a FinTech App depends on each organization's requirements and objectives. As we look ahead to 2023 and 2024, it is likely to range between 30,000 and 300,000. The exact figure depends on your application's type, scope, and complexity. Also, take into account delivery timeframes, the location of your development partner, which influences developers’ rates, and app maintenance costs.

Arounda is a design agency that has been operating in the FinTech field for six years. We have successfully delivered four FinTech projects showcased in our portfolio. Our deep understanding of the process enables us to provide a personalized approach that aligns with current trends, emphasizing the value of each project.

Don't hesitate to contact us for a reliable estimate and expert guidance to ensure the successful creation of your FinTech app. 

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