Quick Summary:
Developing a fintech app requires careful planning and budgeting. In this article, we'll explore the key factors that affect fintech app development cost, and provide tips on how to budget and plan for success.
The growing fintech market has been disrupted in the past few years. From the onset of the pandemic, when safety and financial inclusion became the top priority, to the spike in cryptocurrency and its decline in the past few years, have been nothing less than a roller coaster ride for the fintech sector.
The one thing that has remained constant is the increasing demand for FinTech applications in the market. If you are an entrepreneur planning to build a fintech app, here is an overview of Fintech App Development Costs for different fintech solutions.
| Types of Application | Average Cost of Development |
| Banking App | $50,000 to $150000 |
| Lending App | $50,000 to $250000 |
| Personal Finance Apps | $50,000 to $300000 |
| Insurance Apps | $ 70000 to $500000 |
| Investment Apps | $100000 to $500000 |
The cost of fintech app development for any of the above solutions would vary on factors like features, complexity, security requirements, fintech technology stack, and the development team's experience and location.
Let us explore how different factors affect fintech app development cost.
Recommended Read: Guide to Outsource Fintech Software Development
Fintech App Development Cost -Based On Types and Location
Banking App
Statista reports that mobile banking users will grow to 1.7 billion by 2024 from 0.8 billion in 2019. Also, mobile payment transactions will reach $3.5 trillion by 2023, from $1.5 trillion in 2019.
As more and more consumers have cashless transactions, Banking apps, without any doubt, are the future. From enabling cashless transfers, online investment, and finance management, banking apps have emerged as a one-stop solution for users.
Cost of Banking App Development in Different Geographies
| Geographies | Cost of development |
| USA | $150,000 to $500,000 |
| UK | $120,000 to $450,000 |
| Australia | $100,000 to $350,000 |
| Ukraine | $50,000 to $200,000 |
| India | $20,000 to $75,000 |
| Africa | $30,000 to $150,000 |
Lending App
Lending apps, also known as loan apps, are mobile applications that allow customers to apply for loans using their mobile devices and tablets. These applications empower users to get quick loans without tedious paperwork.
| Geographies | Cost of development |
| USA | $45,000 to $350,000 |
| UK | $45,000 to $120,000 |
| Australia | $55,000 to $200,000 |
| Ukraine | $25,000 to $120,000 |
| India | $12,000 to $60,000 |
| Africa | $40,000 to $60,000 |
Personal Finance Apps
These are fintech apps that help users to plan and track their expenses. One can create personal budgets and saving goals to achieve desired financial health using a personal app.
| Geographies | Cost of development |
| USA | $55,000 to $300,000 |
| UK | $30,000 to $180,000 |
| Australia | $35,000 to $210,000 |
| Ukraine | $15,000 to $100,000 |
| India | $10,000 to $80,000 |
| Africa | $5,000 to $50,000 |
Insurance Apps
These fintech applications empower users to buy & renew their insurance using mobile devices. Using these apps, customers can review multiple insurance policies to find the one that suits them the most and buys it in a paperless transaction.
| Geographies | Cost of development |
| USA | $130,000 to $330,000 |
| UK | $ 80,000 to $240,000 |
| Australia | $85,000 to $175,000 |
| Ukraine | $40,000 to $95,000 |
| India | $27,000 to $65,000 |
| Africa | $14,000 to $68,000 |
Investment Apps
Investment apps are an innovative fintech solution that empowers users to invest in various financial instruments such as stocks, bonds, mutual funds, and exchange-traded funds (ETFs) from their smartphones.
Users can explore different investment opportunities, compare interest rates, manage portfolios, and trade using the same app.
These apps are generally built with features like
- AI-powered analytics tools
- Portfolio management
- Live Trading Option
- Automated investment management
- Resources to educate investors.
| Geographies | Cost of development |
| USA | $125,000 to $350,000 |
| UK | $75,000 to $230,000 |
| Australia | $85,000 to $170,000 |
| Ukraine | $40,000 to $90,000 |
| India | $25,000 to $65,000 |
| Africa | $14,000 to $65,000 |
Fintech App Development Cost -Based On Teams
Besides geography and types, teams are the third critical factor affecting the pricing of a fintech application. Here are four team engagement models for application development and their cost:
In-house development
Hiring an in-house team to build a Fintech application is one of the most expensive methods as it involves other costs like hiring, infrastructure, training, employee salaries, and benefits.
However, companies have greater control over the project and can ensure that the app meets their requirements.
Fintech app development through an in-house can cost you anywhere from $100,000 to $500,000
Freelancers
On the surface, hiring freelancers is cost-effective as you can hire experts on hourly rates from different geographies here. Still, when you add up the time and effort of a project manager in communication and coordination, it can go up quite a bit.
Finding and managing freelancers can be challenging, and quality concerns may arise if the team members are not adequately vetted.
Freelancing the project can cost you anything between $65,000 to $260,000
Outsourcing App Development Company
One can always use a third-party vendor to build a fintech solution. Working with an outsourcing partner with expertise in building and delivering fintech solutions can save both the cost and time of app development.
But, one must recognize the challenges of working with an outsourcing team, i.e., communication gaps and lack of visibility on the ongoing project development. The lack of control can cause projects to spiral and create unnecessary delays in development.
Outsourcing a Fintech App development can range between $50,000 to $200,000.
Recommended Read: 10 Top Fintech Software Development Companies
Offshore Development Team
The offshore team offers the benefits of both in-house and outsourced development. On the one hand, you have a dedicated team working on your project, which directly reports to you; on the other, you have no long-term commitment to the team.
This cost-effective approach allows you to work with expert resources at affordable prices. However, the cost efficiencies depend heavily on the location of the offshore team.
Fintech app development using an offshore development team can range from $30,000 to $150,000
How Can Your Team In India Help You?
Your Team in India is a trusted offshore development company helping businesses scale their IT operations by deploying expiring software engineers on their projects.
For a decade, YTII has helped businesses such as GETTRX, Dory Finance, and Plena Data build and optimize their solutions, enhancing customer experience and improving market penetration.
YTII offers a pre-vetted talent pool of software developers across technology stacks for you to choose from and kickstart your project.
Though cost is an essential aspect of app application development, it should not be the only factor to be considered. Building a Fintech app requires considering numerous elements such as central bank policies, regulation and compliance, data safety, anti-money laundering, and fraud detection mechanism. Thus you must work with experienced developers/ teams while building a fintech application.
Frequently Asked Questions (FAQs)
What costs are involved in developing a fintech app?
What are the different types of Fintech Apps?
How do fintech apps make money?
How to develop a FinTech app?
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