Building a Fintech App can be a challenging investment but with smart strategy and practice, it can help control the costs. The cost of building a Fintech App can range from $20,000 to $250,00 or maybe more! It has no ceiling. And due to this, many Banking and Financial sector companies have started investing in building Fintech App to find effective alternatives. As per reports, 61% of consumers are more inclined to use online-banking methods.
Are you curious about how much it costs to build a Fintech App?
And how does the overall development of the app come with many factors? So keep reading this blog post that will guide you on avoiding investing in this app over the budget. And will also help you determine which features are essential and how you can launch an innovative Fintech app with strategic spending.
Let’s dig in!
An Overview of the Fintech App Development Market
With no surprise, Fintech App Market has been skyrocketing in recent years with an approximate value of $165.17 billion. And the market has not stopped here it is continuously growing at a CAGR of 25.18%, intending to surpass $400 billion by 2027. In 2021 over 26,000 Fintech Startup Companies were launched, and an estimated $8.49 trillion of digital payments were made last year.
Now you might be wondering how these many startups decided to go for the Digital Payment Market.
So this all started because of COVID-19. That time of the period forced everyone to go Digital, and because of this, many businesses got affected, and even it disturbed the supply chain and many more.
It triggered surging demand for digital banking and contactless payments as the usage of Mobile Banking and Online Payment apps soared by an average of 72% worldwide. And sensing this as a generational opportunity, many Financial Institutes are now investing in this app and expanding its market growth.
The result?- Growing and emerging as the biggest Financial Technology Market.
This Financial Technology advancement is helping many financial market forms, from Banking, Insurance, Investment, and loans to cryptocurrencies.
Therefore, financial institutions are seeking firms that can help them with new revenue opportunities, innovate their businesses and improve their efficiencies. And as a result, the demand and cost of Fintech apps and App Developers have increased.
The Cost to Build A Fintech App: Types of a Development Team, Fintech App, and Location
The cost can vary significantly on many core variables when making a budget to build a Fintech App. We will need to go deep for insight into these features.
- Cost by Types of a Development Team:
There are many different types of development teams to develop a Fintech App that can help you build the app according to your need and budget. Let us take a look at various types of Development teams:
- Freelance Developer: Hiring a Freelancer Developer is flexible and affordable. They usually charge less and work efficiently and individually. And at the same time, they work on multiple projects, so they lack time commitment to the project and take longer to complete the project.
- In-House Developers: Building an In-house Fintech Development team requires an upfront investment in finding a skilled developer and their salary, as they work for long-term. But they are a trusted partner as they invest deeply in your app project success.
- Outsourced Developers: Hiring seasoned outsourced fintech app developers offers flexible scaling with lower hourly costs and no major overhead expenses. They require detailed evaluation to minimize risks around quality and security. So, seek out firms that have a demonstrated Fintech track record.
- Offshore Developers: Building Fintech App with Offshore Developers varies in cost from region to region; in Eastern Europe, Latin America, and Southeast Asia, developers charge less compared to the USA, where developers are costly. But, coordinating with vast time zones, protection risks, and logistical delays can be difficult and expensive.
2. Costs by Type of Fintech App:
Fintech market is loaded with a variety of financial apps. So, the cost of building a fintech app varies widely. It depends on the expenses of core elements like UI/UX design, front-end development, back-end infrastructure, integrations, and more. Similarly, Ongoing maintenance, support, and new feature development of the Fintech app also differ.
Now let’s look into different types of Fintech apps with approx cost to develop them.
| Fintech App Type | Description | Example | Development Time | Development Cost |
| Insurance | Policy Recommendation,Underwriting,Claims filing, submission, and tracking,Accident and emergency support services. | Lemonade | 2800 hours | $45,000 to $200,000 |
| Banking | Transaction tracking,Instant transaction notifications,And other capabilities range from basic balance checking to integrated lending, customer service, and regulatory compliance. | Chime | 3200 hours | $30,000 to $300,00 |
| Lending | Speedy loan application,Easygoing repayment schedule,Peer-to-peer lending marketplaces, Credit score monitoring and improvement guidance. | Zest | 2300 hours | $50,000 to $150,000 |
| Investment | Stock Trading Commission – Free,Robo-advisors tools, Automated portfolio management,Real-time trading, Data Analytics, and Research. | Robinhood | 2500 hours | $50,000 to $125,000 |
| Buy Now, Pay Later | Installment repayments at checkout,Financing Intrest Free,Automated payment reminders. | Affirm | 1350 hours | $35,000 to $100,000 |
3. Cost by Location
Location cannot be overlooked when outsourcing a fintech app developer for your project. Types, experience, or expertise alone do not affect the overall development budget; location also significantly affects the cost of building the fintech app.
Let’s take a look into the costs of different types of Fintech apps according to their locations.
| Types of App | The USA | Ukraine | Europe | India |
| Insurance | $300,000 | $100,000 | $91,000 | $75,000 |
| Banking | $500,000 | $175,000 | $245,000 | $100,000 |
| Lending | $270,000 | $90,000 | $155,000 | $55,000 |
| Investment | $180,000 | $140,000 | $60,000 | $30,000 |
| Buy Now Pay Later | $270,000 | $95,000 | $200,000 | $50,000 |
Cost to leverage the latest technology to develop a Fintech App.
A basic fintech app can be built affordably using standard tech stacks, but if the company wants to leverage cutting-edge technology into the app, then that brings a new cost consideration. Incorporating the latest tech like AI, Blockchain, Augmented Reality(AR), and more adds complexity, development time, and talent acquisition costs.
For example, integrating AI- Chatbot for customer support can add more cost to the app’s development, but the basic chatbots are more affordable than the advanced conversational AI, which carries a premium cost. Blockchain development brings a certain absence; the blockchain engineers ask for more cost. Building decentralized apps with tokenization and crypto wallet connectivity adds layers of complexity and security considerations. Augmented and virtual reality capabilities also demand specific expertise, which is still relatively rare.
This means integrating technologies adds costs, provides a competitive advantage, and enables new business models. And companies that have a high budget can incorporate these cutting-edge technologies.
Significant challenges that can affect the cost of Fintech App Development
Above, We already discussed some factors which affect the cost of developing a Fintech App, but it is not limited to that. More elements can also affect the cost. And if these elements are not mitigated early and continuously, then it will cause a dramatically inflated cost:
- Data Security: Fintech handles highly sensitive financial data cause it is essential to ensure the highest level of data protection due to sensitive financial information.
- Regulatory Compliance: Financial authorities have set various regulations and policies for Fintech app companies. These regulations vary from country to country. Regulations that are included are the KYC process, Anti-Money Laundering(AML) regulation and Data Privacy guidelines are some of them. So, when planning to develop the app, keep these policies and regulations in mind so that you won’t have to face any kind of legal fines or penalties.
- Legacy System Integrations: Integrating with fragmented and outdated banking systems through APIs causes immense technical debt. And usually, Fintech apps forget to authenticate smooth integration with banks, payment gateways, and other financial associations, hampering costs. So you must follow these protocols and criteria to boost your customer experience and conversion rate.
- Scalability: Fintech apps must scale to handle extreme demand spikes and transactions without compromising performance. So that is why choosing appropriate cloud infrastructure and optimizing design for flexible scaling is crucial and challenging with the data volume.
- Scalability: Fintech apps must scale to handle extreme demand spikes and transactions without compromising performance. So that is why choosing appropriate cloud infrastructure and optimizing design for flexible scaling is crucial and challenging with the data volume.
- Cross-Platform Support: For smooth function on multiple devices fintech app’s operating system and performance are crucial. Covering the web, iOS, and Android platforms, it complicates development and QA testing efforts. So, the developers have to ensure uniform design and performance across the platforms.
- Resource Constraints: The development of a Fintech app demands professional and experienced developers, designers, and analysts. But hiring professional developers significantly affects development costs. So, you should make the decision accordingly.
- Post-Launch Support: After establishing a Fintech app, companies get relaxed. But the real problem starts after the app is launched when it faces issues like, App crashes, bugs, and performance issues. This causes them a huge fixing cost. So after the app is launched, you should focus on regular ongoing maintenance, features updates, fixing bugs, and customer support.
Why Choose iSyncEvolution for Your Fintech Build
With fintech app development being so complex and risky, having an experienced partner makes all the difference. iSyncEvolution has extensive expertise in building successful fintech applications for clients ranging from startups to large financial institutions. Our development teams specialize in mitigating critical risks like compliance, security, legacy integrations, and cross-platform support. We assemble the optimal blend of in-house and offshore talent to maximize innovation while controlling costs.
iSyncEvolution follows uncompromising design sprints, prototyping, and scoping to identify core features. And we leverage the latest tools and architectures to accelerate secure fintech app development. We have consistently delivered our client’s projects under budget and ahead of schedule. So whether you are a startup or an enterprise seeking digital transformation, trust iSyncEvolution to make your vision a cost-effective reality. We have the proven strategies and talent network to overcome fintech’s obstacles. Partner with us for your next game-changing financial application.