How Much Does It Cost to Create a FinTech App?
FinTech App is a merger of financial services and technology that has changed how businesses function. The financial technology sector has emerged dramatically in the last few years, transforming businesses into a customer-centric approach.
FinTech is an innovative technology attaining dominance globally by substituting traditional financial services in different sectors like banking, payments, wealth management, etc.
With the surge in mobile users, the FinTech app enhances the customer experience by delivering easy payment options.
According to Market Data Forecast, the worldwide financial technology market will reach around $324 billion by 2026.
Seeing the vast potential in the FinTech industry, many business owners want to know the cost of creating a FinTech app. The costs of creating FinTech apps depend on various factors.
This blog will discuss the cost-driving factors impacting the cost of FinTech apps.
So, let’s get started.
Essential Cost-Driving Factors of FinTech Apps
1. Cost to Create Fintech App by Types
Every business functions at a variable speed and seeks diverse goals. FinTech applications need an in-depth knowledge of features and regulations to be incorporated. A reliable FinTech development company is capable of integrating essential features into your FinTech app seamlessly. However, you will require an approximate budget and time to develop an app that functions without glitches. Therefore, to build a basic app that provides a secure, transparent, cost-effective, and easy way to transfer online payments, you will require a minimum budget of $30,000 and a development time of three to four months. Furthermore, it will cost approximately $50,000 to $70,000 to develop an advanced app with more features and the latest technologies.
|Fintech App by Types||Cost of Development|
|Basic||$30,000 to $50,000|
|Average||$50,000 to 80,000|
These are rough estimations, which can differ immensely depending on factors like features, the app’s complexity, the developer’s hourly rate, API integration, specifications, development team, and much more.
2. Cost Determined by Types of Apps
You will have to spend more on the budget than anticipated if you want to add advanced functionalities to your FinTech apps, like data analysis, EMI calculator, and real-time credit score tracking.
Let’s see the approximate price range based on the various types of Fintech apps.
|Types of FinTech Apps||Cost of Development|
|Banking App||$40,000 to $70,000|
|Insurance App||$45,000 to $70,000|
|Lending App||$30,000 to $50,000|
|Consumer Finance App||$50,000 to $300,000|
|Investment App||$60,000 to $120,000|
3. Cost Determined by Types of Teams
The development of the FinTech app will significantly rely on the type of team you select. The FinTech app development cost also depends upon the size of the team. If the fintech app development company does not have the needed resources, they have to hire app developers and fill the talent gaps in the team. The amount mobile app developers need on various resources will show in the total app development cost.
|Types of Team||Cost of Development|
You can go with your selected option; however, creating an in-house team can cost you many. Additionally, freelancers’ assistance may harm your project confidentiality and security. Therefore, we recommend you should hire a fintech app development services provider to validate your app idea.
4. Cost Based on Location
The other essential factor that impacts FinTech app development cost is the development firm’s location, outsourcing company, or freelancers. We are mentioning below the estimated costs of various types of FinTech applications based on different locations.
The cost is determined based on the average complexity of the application and the hourly rate of a team of 4 professionals, including developers, project managers, QA, business analysts, etc., and with a timeframe of 4 to 7 months of app development.
|Type of App||Eastern Europe||Western Europe||North America||South America|
|Consumer Finance App||$290,000||$670,000||$840,000||$250,000|
Essential Things to Check Out Before Creating FinTech Apps
Below are some essential points to consider before investing in a FinTech application:
1. Manage Legal Compliance Effectively
The finTech industry does have to follow certain regulatory and legal compliance, which are mentioned below:
- It would be best if you always pursued legal advice from an independent lawful authority. You should do this before creating your FinTech app. If you are unsure about regulatory compliance, then you can seek the help of a fintech app development services provider to know about regulatory aspects.
- You should have a team of professionals who understand labor laws.
- You should pay attention while creating a cryptocurrency application.
- Not only that, but you should keep some regulations in check, such as the JOBS Act, Fair Credit Reporting Act, US Anti-money Laundering Regulations, etc.
You can discuss your FinTech app idea and other regulatory guidelines with a leading mobile app development company to implement in your app.
2. Have a Detailed Marketing Budget
Being a business owner, you must have a predefined marketing budget. Your marketing budget should summarize all your startup requirements to spend to market your FinTech app. If we talk about the approximate marketing budget, it should be 2 to 3 times the development budget. For instance, if you have spent $50,000 in FinTech app development, your market budget should be $100,000 to $150,000.
The mobile app development cost of the FinTech app will depend on several factors, such as types of apps, teams, location, etc. So it is not easy to present a conclusive cost. However, you will need an estimated budget of $30,000 to $200,000 to create a FinTech app that provides robust security and a convenient way to transfer online payments.
Tom Hardy has 10+ years of experience as a software developer in SparxIT. He often writes blogs and journals to share his expertise in mobile app development processes.