Bitcoins, cryptocurrencies, Ethereum are some common axioms, we hear from people who know even a bit about finance. Financial business is spiraling with technology at a speed that is unimaginable. Given that, there is no general definition of Fintech, it simply means the evolution of finance using technology to tussle their daily finance operations. Building a fintech app is not a cakewalk, businesses need to be on their toes with a knack equally in both finance and technology. There is a never-ending list of applications that you can develop if you use financial software development. But, due to inexperience or proficiency in building, many businesses don’t understand how much does fintech app cost, what features should they consider and what they shouldn’t?
In this blog, we will discover the types of fintech applications, how to build, which factors contribute, and how much would it cost to build such apps?
Table of Content
- Types of FinTech Applications
- Features to Consider Before Building a FinTech Application
- How Much Does It Cost to Develop a Fintech App?
- What is the Cost of Maintenance?
- Components That Affect Fintech Application Development Cost:
1. Types of FinTech Applications
There are many of you who might know what is fintech and how it can change the shape of your business. Thinking of fintech, there can be numerous names that can come into our minds, like digital wallets, assets management, secure payment gateways, asset management, and other several app developments favoring businesses. If we were to divide the necessary fintech applications then we can clearly divide these applications as
- Banking apps- The credit support, money transfers, bill payments, etc
- Stock-related applications- Trading apps, mobile banking apps, Saving apps, loan apps, financial advisory apps, Artificial intelligence imbibed bots for digital assistance.
- Mobile apps developed to support payment gateways
- Bitcoins, cryptocurrencies development using blockchain.
2. Features to Consider Before Building a FinTech Application
As per the unique market demands, your business needs to build apps that meet your end business goals. Your app should be high-performing and fully enhanced with new-edge features so as to stand against customers’ expectations. You can develop a banking app or any fintech app with all types of functional abilities of consumer-centric applications. Every bank need to cater to their customers uniquely and that’s can only be done if they offer unique customer experiences. Lets us what all features can we integrate in a fintech app
2.1 Account Management
The good features of an accounting system is an aid to users as it helps them to easily manage their banking accounts. The app should play a pivotal role in verification, transfers, and day-end tally for the users. When you have your banking application in place, you are capable of examining your regular transactions, account history, and account balances. You can also access the money transmissions in a simple and secure way. The developer will add multiple features of account management like the Transfer of money via the phone number or email address.
2.2 Customization Option
In the market, there are so many platforms offering the same monotonous function in app development. How can you make your application/platform sound differently? Customization will bring a difference. Adding custom features depend on the banking and financial sector clients. It starts with developing clients approaching software development companies with various challenges. To resolve those challenges, technology solutions are offered. Developers can use various technologies like IoT, machine learning, Bots using AI, and other enterprising technologies.
For instance, with the use of Artificial Intelligence, businesses can provide clients with quick and easy customization options. They should have a personalized home screen and provide guidance based on the client’s preferences. The goal here must be to provide the finest customization through technology features that can be useful to customers at all uncertain times. Just like in the pandemic period, the banking sector saw a rise of 72% in the usage of fintech apps in Europe- Source
Do not be skeptical about building a digital banking solution because it will save most of the time and n addition offer customers functions that are easy to operate.
2.3 Data Analytics
Fintech companies will never leave a chance of analyzing data and getting some insights to offer better financial advice to their clients. Data analytics is an important component of a fintech app since it allows users to access and trace the history of their financial transactions. In addition, the app analyzes the whole data set and generates reports for the user. Data Analytics is an useful tool that allows consumers to view and trace their previous financial transactions.
2.4 Notifications & Updates
When you develop applications, your finance updates will keep your customers active and informed. It is important to notify each user about the transaction updates or any application update. As we know, for user enhancement, you must keep updating your apps. Users can utilize transaction notifications to double-check their transactions. Furthermore, the applications serve as a reminder to the user regarding expenditures and investing. Before consumers buy stocks, the banking applications should also deliver articles and statistics. Users may check their credit score, incentives, and bill due dates, as well as keep track of their accounts.
2.5 Voice-Activated Chatbot
Chatbots are Voice, text, and tapping users selecting choices on the app are all methods to communicate with customers. Bank and financial institution chatbots have the potential to improve customer service. The future of banking is conversational banking. Speed, availability to information, and pleasant encounters are all key aspects of customer service and assistance.
2.6 Creative UI/UX
You might think that what for making simple mobile payments should there be a good UI. The answer is because, it, not just bank transfer, it is the user experience that your development team offers with the developed mobile app. It is critical to have an intuitive UI/UX in order to provide the greatest comprehension when using the app. The strategy must direct the executives and help them get more information. Choosing suitable textual styles and presenting content logically with appropriate shading codes for all UI components. It’s important to include these features as needed in the development plans.
There are many reasons for integrating the security aspect in mobile apps. There can be hackers using dummy mobile banking applications or using public Wi-Fi to access your mobile banking app Not upgrading your phone’s operating system or apps is a recipe for disaster. Using your phone to store passwords and PINs. There are innumerable reasons for using security for your application. You must not think twice about imbibing this feature within your app. The cost maybe a factor here, but you should consider security as one of the priorities.
3. How Much Does It Cost to Develop a Fintech App?
The development cost is undoubtedly the turning point for many businesses. Because every business works in a specific budget and time, it is very important to make plans before going into debt. Who doesn’t want a secure and convenient way to payment option, everyone does. But not everyone can keep a track of finances through an app. Thus, it is very important for businesses to develop an app that is safer, transparent and effective for all types of financial transactions.
The cost of app development rises from one country to another. If we were to take a common cost, it wouldn’t be the same. The typical hourly cost for mobile banking app developers in the United States is usually between $100 to $120, but it may be anywhere between $60 to $80 in India.
A finance app with basic functionality and a simple UI for a single platform will cost about $20,000-$35,000 to create.
Building a best-in-class banking app with extensive features will cost between $40,000 and $70,000.
The cost of developing feature-rich finance and banking apps for Android/iOS. It provides sophisticated user interface that can range from $70,000 and more depending on the needs.
There are many factors that combine to determine the cost of developing a banking application.
4. What is the Cost of Maintenance?
In the banking industry, maintenance and security are important considerations. If you develop a FinTech application, you need to be sure to maintain it on a regular basis. It will guarantee users no serious bugs or security concerns that might compromise user’s money or bank account details. Earlier for a basic app, the cost of maintenance was minimal but with new-edge changes in the business, its demands are surging. Your yearly maintenance costs a lot if your mobile banking app is transferring, receiving, or keeping money for customers.
Since there are many important aspects of a mobile banking application. To name a few are to ensure a quality, security, and reliable User Experience, maintenance costs are high. Your yearly maintenance expenses may vary depending on the number of users you have, the complexity of your application, and the quantity of data you have access to.
5. Components That Affect Fintech App Development Cost
If you ask an app development company, you will know how much does it cost for mobile app development for financial services. But as a bank and from the Fintech industry, so you know which factors play an important role in making the cost swing from low to high. There are numerous factors that play a vital role in the development cost. It starts from the features to maintenance cost, to testing, adding additional features, or considering newer technology like blockchain within the app for higher security.
It wouldn’t be wrong to say that Fintech apps are game-changers. Every bank has its own set of requirements to meet with the help of fintech apps. Although, all of these banking enterprises have one common aim- to satisfy their consumers. And developing apps is the most practical way of doing it. Developers are keen on observing the needs and offering feature-rich and trustworthy mobile applications. These features can be simply viewing the bank account to performing money transfers or credit card details or similar other features. In a nutshell, if we were to build an application, our prime focus would be customer satisfaction and security, and so we will build the app accordingly and manage the app development cost.