How Much Does It Cost to Build a FinTech App in the UK?

The FinTech industry has experienced increased growth in recent years because many businesses and consumers rely on digital solutions for banking, investment, payments, and financial management.

Even 86% of the UK’s consumers use at least one FinTech platform to manage their finances. As a result, the demand for these applications is higher, attracting startups and established businesses to develop such apps for consumers.

So, are you thinking about launching your own FinTech app? It is a great idea, but you must be wondering, “How much will it cost?”

It is a good question because it is essential to understand the associated costs to make informed decisions and manage your budget and resources accordingly.

Building a FinTech application requires excellent planning and extensive development,  which can also impact the development costs.

This guide will break down the costs of developing a FinTech app in the UK and the factors influencing the development costs. We will also explore everything from different types of apps and their costs to tips for reducing development costs.

What is a FinTech App?

A FinTech app is a mobile or web-based application that provides financial services, such as banking, investment, payments, lending, insurance, etc, to users.

These apps help businesses and individuals manage money and finances easily, from mobile banking and investment platforms to digital wallets and loan apps.

These apps include features like transaction tracking, bill payments, digital wallets, peer-to-peer payments, and instant financial updates.

The main goal is to provide users with an app that helps them manage their finances more efficiently and user-friendly using technologies like blockchain and AI.

FinTech apps come in many forms, from simple tools that help users manage their money to a platform that allows online trading or investing. Some of the most common types include:

Mobile Banking Apps

These are used by banks and credit unions to provide services like checking account balances, transferring money, and paying bills.

Digital Wallets

Allow users to store and manage their payment methods and allow mobile payments (e.g., Apple Pay, Google Wallet).

Investment Platforms

Provide users access to trading stocks, bonds, and other assets.

Peer-to-Peer Lending Apps

Allows individuals to lend or borrow money directly from others without involving financial institutions (e.g., LendingClub, Funding Circle).

Insurance Apps

Help users compare policies, buy insurance, and manage claims.

Must-Have Features of the FinTech Apps

When building a FinTech app, ensuring a smooth and secure feature-rich platform that users can trust with their financial activities is essential. Below are the features that every application must have.

User Registration and Authentication

The first essential feature of a FinTech application is that it allows easy and quick user registration. It should include multi-factor authentication.

It will enhance security by asking for many verifications, such as OTP (One-time password), biometric recognition (fingerprint or facial ID), or email confirmation. Many apps also include KYC processes to verify user identity using third-party services.

User-friendly Interface and Personalised Experience

For any FinTech, it is important that users can easily access financial tools without confusion, and this is what UI helps with by designing a clean and user-friendly interface.

Dashboards are included that display personalised information, such as the spending breakdown, saving goals, and transaction summaries. The app should allow users to customise themes, alerts, and preferences, which help improve their engagement with the app.

Security Features

The FinTech apps contain sensitive information, making the security features essential. End-to-end encryption safeguards all data within the app, ensuring no sensitive information falls into the wrong hands.

Fraud detection systems monitor transactions to identify and block suspicious activities. Additionally, compliance with global standards like GDPR and PCI DSS guarantees secure data storage, building user trust.

Payments and Transactions

FinTech applications provide users with a simple and quick way to handle their finances, which makes secure payments and transactions the important feature of the application.

Real-time transaction processing ensures that users receive instant updates and messages for all their activities, such as deposits, withdrawals, or transfers.

The apps become versatile when various payment gateways, such as Stripe or PayPal, are integrated into the app.

Payments also become quick due to QR code scanning, which allows users to transfer instantly, making it convenient.

Budgeting and Expense Management

The most essential feature of the FinTech apps is the budget and expense management tools. These tools help users take control of their finances.

They can divide their spending into groceries, dining, and entertainment categories. This will help them know where they spend the money and keep track of it.

Automated budget tracking helps users set financial goals that notify them when they are about to exceed their limits.

Customer Support and Chatbots

No matter how intuitive and user-friendly an app is, users may need help with some issues or understand the app better.

The customer support features, such as live chat, email support, or 24/7 hotlines, are essential for resolving issues quickly.

AI chatbots enhance the user experience by responding instantly to common queries, such as resetting passwords or checking account balances.

Types of FinTech Apps and Their Costs

If we are talking about FinTech apps, it doesn’t mean that there is only one kind of app that offers all the financial services. It comes in many types, and each offers a specific purpose.

The following are the main categories, along with a breakdown of the costs associated with building each type of app.

Mobile Banking Apps

Mobile banking apps allow users to use their accounts, make payments, transfer funds, and manage their financial transactions easily from their smartphones.

With banking apps, you don’t have to go to banks because everything can be done online, from creating your account to applying for a loan.

These apps can range from simple banking solutions to highly secure platforms with multiple features like voice recognition or mobile check deposits.

A simple mobile banking app can cost less, while an advanced app with new technologies in banking and features like integrated AI, biometric authentication, and multi-currency support can cost more.

Development Cost: £50,000–£150,000

Digital Wallets (E-Wallets)

Digital wallets, as the name suggests, enable users to store their credit card or bank account details, which allows them to make quick payments, transfers, and online shopping.

They also support secure payment methods like NFC (Near Field Communication) for contactless payments.

Development Cost: £40,000–£150,000

Investment Apps

Investment apps allow individuals to trade and manage stocks, bonds, mutual funds, and cryptocurrency investments. These apps allow you to invest in various sectors.

These platforms often integrate tools for portfolio management, stock tracking, and market analysis.

However, it is essential to understand that if you want to build this app, the mobile app development cost can be significantly high, especially when integrating advanced features like trading algorithms, real-time stock feeds, and portfolio management.

Development Costs: £60,000–£250,000

Lending Apps

The P2P lending apps allow individuals to lend or borrow money directly without the involvement of banks. These apps allow borrowers to get loans for personal or business purposes while lenders can earn interest on their investments.

These platforms often feature loan calculators, credit checks, and repayment management tools. Popular examples of these apps include LendingClub, Prosper, and Funding Circle.

Development Cost: £70,000–£180,000

Insurance Apps (InsurTech)

Insurance apps are one of the types of FinTech apps that are usually known as InsurTech apps. These apps help users compare insurance policies, manage premiums, file claims, and track coverage. These apps also provide personalised recommendations for insurance products with the help of AI.

Development Cost: £50,000–£150,000

What is the Cost of Building a FinTech App in the UK?

The app making charges for building a FinTech app in the UK are around £30,000–£300,000 or more. The development costs can be affected based on the complexity, development stages, and time requirements.

For instance, if you are building a peer-to-peer lending app with features like automatic credit scoring, fraud detection, and detailed loan tracking, the cost of developing the app will be high, at around £180,000. On the other hand, the cost of developing a simple banking app can be £50,000.

Therefore, the price of developing FinTech apps is influenced by many factors, like the app’s features, UI/UX design, technology stack, platform selection, and security measures.

Here is a table breaking down the costs based on the app’s complexity levels.

Cost Breakdown for Building a FinTech App

When building a FinTech app, it is important to understand that various components contribute to the total cost of app development.

Here is a detailed breakdown of each development stage involved in creating a FinTech app and their costs.

Planning and Research

The development of the FinTech app begins with careful planning and research. This stage involves market research, determining user needs, identifying competitors, and setting clear goals for the app.

Research also includes understanding the financial regulations and compliance standards the app should comply with, like GDPR for data protection or PCI DSS for payment processing.

Cost: £5,000–£10,000

UI/UX Design

The next stage involves creating a proper UI/UX roadmap to ensure the app is visually appealing and easy to use. No user likes congested apps, and they automatically leave your app when they feel confused and cannot use it easily.

FinTech apps should include intuitive navigation, clear calls to action, and user-friendly financial tools. UI/UX design covers wireframes, prototypes, and the actual look of the app, ensuring it provides a user-friendly experience.

Cost: £10,000–£30,000

Development (Frontend & Backend)

This is the main and technical phase of the development. Frontend development involves creating the app parts that users interact with, such as buttons, forms, navigation, etc.

Backend development includes implementing backend languages to set up the database, server-side logic, payment gateways, and integrating security features.

Cost: £30,000–£100,000+

Security Implementation

Security implementation is the most important phase. As FinTech apps handle sensitive financial data, ensuring strong security measures is essential.

This includes implementing encryption, multi-factor authentication (MFA), and secure APIs. These security features help prevent fraud and data breaches, which helps build user trust.

Cost: £10,000–£50,000

Testing and QA

Quality assurance (QA) ensures that the app doesn’t contain bugs and performs smoothly and efficiently. Testing involves functional testing, security testing, unit testing, load testing, and user acceptance testing (UAT) to ensure the app works on all devices and platforms.

Cost: £10,000–£20,000

Launch and Marketing

Another development stage is launching the app, which requires preparing for deployment on app stores and online platforms. Also, marketing strategies and efforts are essential to build brand awareness and attract new users. This includes app store optimisation (ASO), paid ads, social media campaigns, and content marketing.

Cost: £5,000–£20,000

Maintenance and Updates

Once the app is launched, ongoing maintenance is necessary to identify and fix bugs, provide updates, and ensure compliance with changing financial regulations. Regular updates will help improve app performance and introduce new features. That is why the development cost of FinTech apps will also include app maintenance costs.

Costs: £5,000–£15,000 annually

Estimating the Total Cost: From MVP to Full App

Till now, we have learned how much it costs to build a FinTech app in the UK. However, the overall costs depend on the app’s complexity and features. Here is an estimate of costs at different stages of development.

MVP (Minimum Viable Product)

An MVP is a basic version of your app that includes only the essential features necessary to meet the specific needs of your target audience.

It is one of the most cost-effective methods that helps save money on development costs. This app is usually developed to test new business ideas and gather user feedback. It includes core features such as account management, payments, and basic security.

Cost: £50,000–£80,000

Full-Scale App

A fully developed FinTech app includes all planned features, such as advanced analytics, real-time data processing, user-friendly interfaces, and solid security.

However, creating a fully-featured app can cost you more, and the cost can depend on the app’s complexity, number of integrations, and the inclusion of the latest technologies like AI, cloud computing, machine learning, and blockchain.

Cost: £150,000–£300,000+

Cost of Hiring FinTech App Developers in the UK

Hiring the right development team is one of the most vital cost factors when building a FinTech app. App developer rates vary depending on their experience, location, and project scope.

In-House Team

Hiring an in-house team provides the benefits of complete control over the project, but it can be a costly option. In-house developers usually have higher salaries and additional costs like employee benefits, office space, and training.

If you hire full-time developers, designers, and project managers in the UK, you should know that it may cost you around £100,000–£200,000 annually, depending on the team size and expertise.

Freelancers

Freelancers offer a more flexible option and are often less expensive than in-house employees. You can hire them for specific tasks, like frontend or backend development, UI/UX design, and security.

Freelance rates can vary widely but expect to pay around £30–£100 per hour for skilled FinTech developers and designers in the UK.

Offshore Development

Offshore development means outsourcing to companies or teams located in a different country with lower labour costs. Offshore development teams can offer significant cost savings.

However, communication, time zone differences, and quality assurance can be challenges. Offshore development rates can range from £20 to £50 per hour, providing cost-effective options for FinTech app development.

What Are the Factors That Affect the Cost of Building a FinTech App?

The cost of building a FinTech application is influenced by multiple factors. These factors help determine the budget and development timeline. Let’s understand these factors in detail to plan more effectively and avoid unexpected costs.

App Complexity

How much you will be spending on the FinTech app development affects the complexity of your app. If your app includes basic services, like fund transfers or account management, the development costs will be lower due to the less time and resources used to build the app.

However, apps with advanced features, such as AI-driven analytics, cryptocurrency wallets, robo-advisers, or the development of APIs like Open Banking, will cost you more because it demand more effort, expertise, and time.

Platform Choice

Your choice of platform, whether Android, iOS, or both, will impact the cost of developing the app. Native development for each platform ensures better performance and user experience but increases the workload as separate codebases are required to build the app.

Cross-platform development can be ideal if you want to get your app within budget. Cross-platform development, using frameworks like Flutter or React Native, can save costs while delivering the best app experience. However, the choice depends on your target audience and app goals.

Development Team Location

Where your development team is located plays an important role in determining the development costs.

Developers in the UK or other high-cost regions usually charge between £50 and £150 per hour, whereas teams from Eastern Europe or South Asia offer rates as low as £20 to £50 per hour.

The lower rates can help save money, but you should ensure the team has the required expertise to meet your app’s demand.

Design and User Experience (UX)

A FinTech app’s design should be user-friendly and allow users to navigate easily. They should know where to go to manage their accounts, apply for loans, pay bills, track finances, etc.

A well-designed app involves wireframes, prototypes, user testing, and sometimes custom animations. These processes require skilled designers and extended timelines, which can increase costs.

However, you should ensure your app design follows the UI/UX principles and future design trends, as it will help offer the best results.

Compliance Requirments

In the UK, compliance with regulations such as FCA guidelines, GDPR, and PCI DSS for handling financial and user data is mandatory.

However, ensuring compliance can add to the overall development cost by integrating security measures like encryption, two-factor authentication (2FA), and auditing processes.

Third-Party Integrations

Most FinTech apps require external integrations like payment gateways, banking APIs, data analytics platforms, or cloud services.

These tools are essential, but they come with licensing fees, setup costs, and ongoing subscription charges, which can increase the app development costs.

Technology Stack

The technology used for developing the FinTech app also influences the cost of building it. The modern stack can ensure enhanced scalability, performance, and security, but it can also impact the budget significantly.

The programming languages for app development, frontend technologies, backend technologies, databases, cloud infrastructure, and security measures used while developing your app can affect the costs. However, advanced and premium tools or frameworks can increase development costs.

Post-Launch Maintenance

Development doesn’t end with the launch. Maintaining the app involves updating software, fixing bugs, scaling infrastructure, and ensuring compatibility with the latest operating systems. This ongoing process can represent 20–30% of the initial development cost annually.

Hidden Costs to Watch Out For

Even when you have planned your budget effectively, unexpected expenses can occur during or after development. Here are some hidden costs to consider.

API Usage Fees

Third-party APIs, such as payment processors or currency exchange services, are often essential for FinTech apps.

However, these APIs can charge recurring fees based on usage. So, when your user base starts to grow, these charges can increase, impacting your operational budget.

Compliance Updates

With changing user needs and increased cyber threats, financial regulation can also change, and your app must comply with them to avoid legal and reputational risks.

Regular updates to meet new compliance standards, such as changes in GDPR rules or FCA requirements, can require extra development and legal consultation, resulting in increased costs.

Scalability Costs

When your app experiences increased user growth, you will need to upgrade your cloud infrastructure to handle the increased traffic.

While scalability is a good sign that your business is growing and becoming profitable, it can also lead to unexpected costs if not planned for during development.

Marketing and User Acquisition

Once your app is live, you will need effective digital marketing strategies and campaigns, app store optimisation, social media ads, and partnerships to attract users. These costs can quickly add up, so consider them during the budgeting phase.

Bug Fixes and Customer Support

During the post-launch, there can be bugs or issues that weren’t detected when testing the app. Fixing these issues will require the developer’s time, which can lead to additional costs. Additionally, providing customer support for troubleshooting and inquiries might require an expert team or software.

How to Reduce FinTech App Development Costs?

While FinTech apps can be costly to build, there are many strategies that you can use to manage your costs and ensure the best quality of the app. Some ways to reduce the FinTech application costs are as follows:

Prioritise an MVP (Minimum Viable Product)

An MVP includes only the core features necessary to test your app or fintech startup idea. You can focus on essential functionalities like user registration, basic transactions, and account management.

It will also help launch your app faster and gather user feedback. This approach saves resources and money and improves based on user input before investing in advanced features.

Choose Cross-Platform Development

Building a cross-platform app using tools like Flutter or React Native can reduce development costs.

Instead of developing separate apps for Android and iOS, cross-platform frameworks use a single codebase that works on both platforms, reducing development time while maintaining high performance.

Partner with an Offshore Development Team

Offshore teams, particularly in regions like Eastern Europe or India, often provide high-quality development services that meet your budget. However, choosing a team or app development company with experience in FinTech projects is important to ensure quality and compliance.

Reuse Existing Solutions

Another way of reducing development costs is using pre-built modules for common functionalities like user authentication, payment processing, or data visualisation instead of developing every feature from scratch. Open-source libraries and APIs can also reduce development time and costs.

Plan for Scalability Early

When you are planning and designing your app’s design and infrastructure, keep scalability in mind.

Opt for cloud solutions like AWS, Azure, or Google Cloud, as they offer flexible pricing based on usage. This ensures your app can handle user growth without requiring expensive infrastructure upgrades later.

How Can Arramton Help a FinTech App That Meets Your Needs & Budget?

There are many popular FinTech apps in the UK that have set an example of innovation and usability, such as Monzo, Revolut, TransferWise, Starling Bank, and many more.

Arramton is the best option for developing an app that meets your business needs and goals if you also want to set an amazing example or have an excellent FinTech business idea.

They offer end-to-end FinTech app development services that are within your budget. Our team has years of experience building apps for the financial sector, ensuring compliance with regulations, and providing secure, scalable solutions.

From ideation and design to development and post-launch maintenance, we handle every aspect of your project, ensuring high quality.

We use the latest technologies, including AI, blockchain, and Open Banking APIs, to ensure your app stays competitive and meets user expectations

At Arramton, we keep you involved in every step of the process to ensure the final product meets your vision. As a leading service provider of FinTech app development in the UK, we can help develop your preferred app that aligns with your budget and needs.

Whether you want a simple app with basic features or a complex app with advanced functionalities, Arramton Infotech can create a secure, efficient, and scalable FinTech app.

Wrapping Up

To sum up, the cost of developing a FinTech app in the UK ranges from £30,000 to £300,000 or more.

However, the cost of building an app can vary depending on factors such as the app's complexity, the features required, and the development team’s location.

The cost also depends on the types of FinTech apps you want to develop and the features you will integrate into the app. Don’t forget to look out for the hidden costs, as they can increase the development costs and affect your budget.

However, you can reduce the development costs by choosing MVP, cross-platform development, early scalability planning, and partnering with an offshore development team.

If you're looking to build a secure and scalable FinTech app, get in touch with Arramton today to discuss your project and get a customised quote!

Frequently Asked Questions

Q1 What is the average cost to build a FinTech app in the UK?

Ans: The cost of building a FinTech app in the UK ranges from £50,000–£300,000, which can vary based on complexity, platform, features, and security.

Q2 How long does it take to build a FinTech app?

Ans: The time it takes to build a FinTech app usually takes between 3 months to 1 year, depending on the app’s complexity, platform and features you have chosen, developer’s expertise, and more.

Q3 What are the key features of a FinTech app?

Ans: FinTech apps have various essential features that you should consider when developing your app. Some features include:

👉 Real-time transactions

👉 Multi-currency support

👉 Data encryption

👉 AI tools

Q4 How to keep FinTech app development costs within budget?

Ans: If you want to keep FinTech app development costs within budget, follow these steps:

👉 Outline the essential features and avoid scope creep.

👉 Begin with core features, and add more later as your business grows.

👉 Hiring freelancers or outsourcing to regions with lower labour costs can save money.

👉 Using free, reliable, open-source tools can reduce development costs.

👉 Stick to timelines to avoid budget overruns.

Q5 Why is security crucial for FinTech apps?

Ans: FinTech apps handle sensitive financial data, requiring top security measures like encryption and fraud prevention.