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How Much Does It Cost to Develop a Fintech App: A Comprehensive Guide

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Developing a fintech app can vary in cost depending on the type of app you are building, whether it’s a banking, lending, investment, or financial planning app. There are many different specialties within the fintech application space.

A rough estimate of the cost can range from $30,000 to $300,000 depending on your specific app needs. However, it’s important to understand that creating a fintech application involves complex intricacies that should not be overlooked.

According to a report by Statista, global investment in fintech companies surpassed

$135.7 billion in 2019 and is expected to continue to grow. To succeed in the multi- billion dollar fintech industry, it’s crucial to carefully consider the costs involved in creating your app. Let’s dive into the specifics and zero down on a more accurate estimate.

Going Through the Drills

When building a fintech application, the following factors need to be taken into consideration to reach a near perfect estimate

Factor Description
Development Team Size and expertise of the team involved in app development.
Platform and Technology Choice of platform and technology used for app development.
App Complexity Complexity of app features and functionalities.
Design and User Experience User interface design and user experience considerations.
Security and Compliance Security measures and regulatory compliance requirements.
Integration with third-party services Integration with third-party services.

Development Team

Estimating the cost of developing a fintech app requires consideration of several factors, including team size, developer hourly rates, development times, project

management, expertise and specialized skills, and external consultants or agencies.

A small-scale app may only require a team of 3-5 members, while larger and more complex apps may require a team of 10 or more.

An experienced project manager is crucial for efficient development and cost control, and specialized skills like blockchain integration or AI algorithms can increase costs.

Hourly rates vary based on location and experience level, and development timeframes range from 2-4 months for simple apps to 6–12 months or longer for complex apps.

External consultants or agencies may also be an option, but they come with additional costs.

Understanding your project needs and finding the perfect development team are crucial for accurately estimating the possible costs incurred.

Platform and Technology

Choosing the correct tech stack for developing a fintech app can cost a lot of money, depending on the choices made. Here are rough estimates for different options:

Native app development: $20,000 to $150,000+ Cross-platform development: $15,000 to $120,000+

Web app development: $10,000 to $100,000+

Backend development can cost $10,000 to $50,000, and extra costs may be added for third-party integrations and security measures. Maintenance costs are usually 15% to 20% of the initial development cost per year.

Keep in mind that these are just estimates, and the actual cost will depend on what the fintech app needs.

App Complexity

Complexity includes features like payment processing, AI-powered chatbots, and data analytics that may increase the cost of development, with basic apps costing

$10,000 to $30,000, moderate apps costing $30,000 to $70,000, and complex apps costing $70,000 to $150,000 or more. Integrating third-party services, scalability requirements, and regulatory compliance also impact costs.

Design and User Experience

In today’s world, where even the most complicated technology relies on a seamless user experience to connect users with the technology, design and UX become extremely important in building an app. Here are some numbers to provide further insight:

Factor Estimated Cost
UI Design $5,000 to $20,000 or more
UX Design $10,000 to $30,000 or more
Custom Graphic Elements and Animations $5,000 to $15,000 or more
Responsive Design 10% to 30% of Overall Design Budget
Usability Testing $5,000 to $15,000 or more
Iterative Design Process Varies Based on the Number of Iterations Required and the Duration of the Design Phase

Security and Compliance

Security and compliance demand a significant amount of capital. Costs can range from $5,000 to $15,000 for authentication and authorization, $10,000 to $30,000 for data security measures, $5,000 to $20,000 for security audits $10,000 to $50,000 for regulatory compliance and penetration testing, and 15-20% of the initial development cost per year for ongoing maintenance and updates. Additional costs may include

Cybersecurity insurance

Legal compliance services such as Know Your Customer (KYC) Anti-Money Laundering (AML)

Payment Card Industry Data Security Standards (PCI DSS)

Integration With Third-Party Services

Integrating third-party services is crucial to developing a fintech app. Payment gateway integration can cost $5,000 to $15,000 or more, financial API integration can cost $5,000 to $20,000 or more, identity verification service integration can cost

$5,000 to $15,000 or more, external data provider integration can cost $5,000 to

$20,000 or more, and cloud service integration can cost $5,000 to $15,000 or more. These are general estimates that can vary based on specific requirements, customization, and licensing or usage fees.

Few Options to Consider for Building the Perfect Fintech App

When selecting a fintech app development company, consider their expertise, portfolio, technology skills, security and compliance practices, communication and collaboration, scalability, and support, as well as cost and budget. Prioritize quality and expertise over cost alone to ensure a successful and efficient development process.

The following companies fared well in all of the above-mentioned factors:

The fintech industry is highly competitive, with several established players dominating the market. Some of the key players in the fintech industry include GeekyAnts, Square, Venmo, Mint, Robinhood, Acorns,and Credit Karma, among others. These companies have built a reputation for providing innovative and user- friendly financial products and services.

Let’s take a closer look at some of these fintech players.

Square is a popular fintech company that provides payment gateway solutions. It has become increasingly popular in recent years as more merchants look for ways to accept digital payments.

GeekyAnts is an industry leader in the fintech space, building products across React, React Native, Flutter, Next.js, .NET, and Vue.js.

Check-out their impressive repertoire of fin-tech products developed.

Mint is a financial planning and popular budgeting app that has become popular for letting people take control of their finances. The app enables users to set budgets, track their expenses and monitor their credit scores.

Robinhood is an investment app that lets users to invest in stocks, ETFs, and cryptocurrency without paying any commissions. The app has certainly disrupted the traditional investment industry by making it supremely easier and more affordable for people to invest their money.

Parting Thoughts

The fintech space is rapidly expanding, and it is essential to understand the costs involved in developing an app and choosing the right team to build the application efficiently.

Knowing a rough estimate to develop the application can serve as a great help in building a market-ready and robust fintech application.

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