How Much Does It Cost to Build a Mobile Banking App like Monzo in the UK?

The fintech industry is increasing, with revenue expected to exceed 141.18 billion U.S. dollars in 2028.

It has improved the way banking services are provided and accessed. It has helped make banking more efficient and customer-friendly.

Mobile banking apps have also changed how users manage their finances. According to Statista, mobile banking usage in the UK has also seen significant growth between 2019 and 2024, with 73 percent of bank account holders managing their banking affairs via mobile devices.

However, this creates a need for any app with the best security and the right technology. One of the best mobile banking apps is Monzo. It has completely changed the fintech space with its user-friendly features and experience.

If you are also considering building a mobile banking app like Monzo, it is essential to understand the mobile app development costs. So, how much would it cost to create such an app in the UK?

Here is a complete guide that includes a breakdown of costs, factors influencing the price, features of the mobile banking app, and how to reduce the development costs.

What is Monzo?

Monzo is a digital bank that provides a smooth and advanced approach to personal banking through its mobile-first platform.

It was launched in 2015 and quickly gained popularity because of its impressive features, user-friendly interface, and customer-centric banking approach.

The Monzo app operates completely online, meaning there are no physical branches. Users can access all services with the app's help, which provides tools for budgeting, payments, savings, and more.

One of the best features of this app is its ability to simplify financial management. The app also allows users to set saving goals, split bills, and make international payments, all while maintaining the best security.

It also doesn’t include overdraft, minimum deposit, and foreign transaction fees. Its main purpose is to make money work for everyone by providing clear and reliable banking services.

It is different from the ParentPay app, which is a school cashless payment system, while Monzo is a digital bank that offers banking services.

Is Monzo Safe?

The question that lingers on the user's mind while using the banking app is whether it is safe, and the same goes for the Monzo app.

This app is secure as it follows strict safety and security measures that ensure the user's funds and data stay protected. Here is why this app is considered a safe option.

Monzo is fully licensed and regulated by the FCA (Financial Conduct Authority), the governing authority for financial institutions in the UK. It ensures the app complies with financial laws and operational standards.

This mobile banking app protects user deposits up to £85,000 under the Financial Services Compensation Scheme (FSCS). If the app were to fail, users would still get their money back up to this limit.

It uses multiple security features like two-factor authentication (2FA), biometric login, data encryption, and fraud detection to ensure that user accounts remain safe.

The app sends instant real-time notifications for every transaction. This ensures users are immediately notified of any unauthorised activity.

Monzo allows users to freeze or unfreeze their debit card directly from the app, offering more control to users if their card is lost or stolen.

Why Build a Mobile Banking App Like Monzo?

If you have any fintech app ideas and want to build a mobile banking app like Monzo, you are in for a treat. Creating an app like this is an investment opportunity for businesses who wish to bring a change in the financial sector.

Here is why building a mobile banking app similar to Monzo makes sense.

Growing Demand for Digital Banking

More users are opting for digital banking instead of going to traditional banks. This is because these people seek a quick and convenient solution for managing their money. These apps meet the user's needs by allowing them to access financial services at their fingertips.

Reduced Operational Costs

Another benefit of building such an app is operational costs are reduced because digital-only banks save costs on infrastructure, staffing, and maintenance. These savings can be used to improve app features and offer better services to users.

Revenue Opportunities

You can get the chance to access more revenue opportunities. The mobile banking apps can generate revenue through:

👉 Subscription fees for premium accounts

👉 Foreign exchange fees

👉 Overdraft charges and loans

👉 Partnerships with third-party financial service providers

User-Centric Banking Solutions

Digital and modern banking apps focus on the user experience and offer excellent tools for budgeting, saving, managing money, and more. Such features help build customer loyalty and differentiate digital banks from their competitors.

Technological Innovation

Mobile banking apps allow the integration of advanced and new technology in banking, like AI, machine learning, and blockchain. These tools help enhance personalisation, fraud detection, and transaction efficiency.

Scalability and Global Reach

Digital banks can scale faster than regular and physical banks, which makes it easier to reach international users and expand globally.

Key Features of Mobile Banking App Development

You should know about the essential features that users expect when building a mobile banking app. The core features of mobile banking apps like Monzo are as follows:-

1. User Registration and Onboarding

The user registration and onboarding process is the first interaction a user has with your mobile banking app. An efficient onboarding process ensures your users don’t get frustrated or exit the app.

This process helps users set up their accounts quickly. It includes identifying verification (KYC), email confirmation, and two-factor authentication to ensure security.

Nowadays, many banking apps include biometric verification, such as fingerprint scanning or Face ID, making the login process more quick and secure.

2. Real-Time Notifications

The essential feature of mobile banking apps is real-time notifications. This feature keeps users informed regarding their account activities.

Users want instant alerts for every transaction, including payments, withdrawals, and spending. It becomes beneficial for preventing fraud, as users can quickly identify any suspicious transactions and take action immediately.

Real-time notifications enhance security and convenience while also improving financial management.

3. Budget Management Tools

The best feature of digital banking apps is their ability to help users manage their finances more effectively.

Budget management tools within mobile banking apps allow users to track their spending and set budget limits for specific categories, such as dining, entertainment, or groceries.

By setting a budget, users can receive alerts when they approach their spending limits, which helps prevent overspending. Personalised budgets, bills, and expenditure analysis can enhance user experience.

4. Payment and Transfer Services

Another essential feature of any mobile banking app is providing fast and secure payments and transfers. Mobile banking apps should have the following options:

Peer-to-Peer (P2P) Transfers

It allows users to send and request money from friends and family instantly.

International Transfers

Integration with multi-currency payment systems for global transactions.

Bill Payments

It allows you to make bill payments for utilities, subscriptions, and services.

Direct Debit Management

Users can manage direct debits and standing orders for regular payments.

Payment Links

Share secure payment links for split bills, loans, or payments.

This feature ensures that users can make and receive payments quickly and securely without needing to visit a bank branch.

5. Saving Features

Saving tools such as Monzo’s "Pots" help users distribute funds for specific goals, automate savings, or round up transactions.

For instance, if a user spends £4.75, the app can round up the transaction to £5.00 and save the 25p difference. These features are helpful for those looking to save for their dream vacation or maintain an emergency fund. Saving features encourage users to save more.

6. Card Management

Card management is another essential feature that enhances the user's convenience and offers them more control.

The app should include a feature that provides users control over their debit or credit cards or any other payment method, such as digital mobile wallets, directly from the app.

For instance, the app should allow users to freeze or unfreeze their card if it is lost or stolen or if they don’t want to use it temporarily.

Also, the users can set spending limits for various categories, such as online purchases, ATM withdrawals, and more. This feature helps user monitor and manage their card activities, especially those using digital or virtual cards for online transactions.

7. Security and Fraud Detection

The most important features of the mobile banking app are security and fraud detection systems.

As cybercrime is increasing, features such as multi-factor authentication (MFA), end-to-end encryption, and AI-driven fraud detection algorithms help improve user trust and prevent unauthorised access.

AI in banking is widely used because it analyses large volumes of transactional data, which can help detect fraud.

8. Customer Support Integration

Providing excellent customer support is essential for any mobile banking app, as it helps enhance user experience.

Multiple support channels like live chat, phone support, and help centers help users resolve any problem quickly.

When users face challenges, whether related to transactions, technical issues, or app features, they will want an instant solution. So, easy access to customer service ensures a positive experience, which in turn builds trust and user loyalty.

9. Contactless and QR Code Payments

Cashless payments have become essential for any current, new, or trending future businesses, and many apps have been developed since then.

The mobile banking apps include OR code payments, digital mobile wallets, and NFC (Near Field Communication), which are required if you want to develop an app like Monzo.

Estimated Cost Breakdown to Build an App Like Monzo in the UK

When it comes to building a mobile banking app like Monzo, careful planning and investment are required.

From design and development to testing and launch, many stages and factors influence the total cost of mobile app development.

The estimated cost of developing a mobile banking app like Monzo in the UK can range between £30,000 and £200,000 +. The app making charges can vary depending on the app’s complexity, the features included, and the development team’s rates.

Also, it is essential to consider long-term costs, including maintenance and updates, which can add up to £50,000 per year.

You can build a secure mobile banking app that meets the needs of today’s digital banking customers by including essential features and giving priority to security and user experience.

Below is an estimated breakdown of the cost of developing a mobile banking app.

The table clearly shows the costs you will need to invest in building a mobile banking app. If you are considering a basic app, the cost will be £30,000–£50,000, while an advanced mobile banking app will cost you around £100,000–£200,000.

The Development Stages and Their Costs

The process of building a mobile banking app involves various stages. Each of these stages ensures your app becomes successful and meets your trending or new startup ideas and goals. Here is a detailed breakdown of each stage and their costs.

Idea and Planning Phase

No app is developed without any planning and defining the goals. It is the step where the app concept is developed.

The planning phase includes identifying the features and functionalities you want to include, understanding market competition, and ensuring the app is complying with banking regulations. The cost of this phase varies depending on the complexity of the research and planning.

Cost: £5,000 and £10,000

Design Phase

In this stage, the design team creates a clear UI/UX roadmap. The team works on wireframes, mockups, and the app’s design.

The mobile banking app design is created that focuses on an easy-to-use interface. User testing is also conducted in this stage to make the design more appealing.

This phase is essential because a good design impacts the user experience and engagement.

Cost: £10,000 and £30,000

Development Phase

Once your mobile banking app is designed, the development phase begins. It is the most important phase and is the costly part of the process.

Developers work on the frontend and backend languages and processes, ensuring that the app integrates smoothly with the necessary banking systems and third-party services.

The cost of this stage depends on the number of features and the platform you prefer.

Cost: £100,000 to £250,000

Testing and QA Phase

After the app is developed, a thorough testing phase ensures that your app is functioning as expected. The QA team performs many testing rounds to find and fix bugs, performance issues, and security flaws.

Cost: £10,000 and £20,000

Deployment Phase

This stage involves launching the app on the App Store and Google Play Store. The app’s launch is promoted using different marketing strategies and campaigns.

Also, reaching new users is part of this phase. Its cost usually includes setting up app store listings, preparing promotional material, and ensuring a smooth launch.

Cost: £5,000 and £10,000

Maintenance Phase

Updating the app is necessary to ensure it runs smoothly without any problems. The app maintenance costs include fixing bugs, adding new features, optimising performance, and ensuring the app stays compatible with updates to iOS and Android systems.

Cost: £10,000 and £50,000 per year

Factors That Influence the Cost of Developing a Mobile Banking App

The cost of developing a mobile banking app like Monzo is influenced by various factors. This makes it essential to understand and learn about these factors, as it will help you plan your budget more effectively and accurately

Platform Selection (iOS, Android, or Both)

The most important factor that impacts the total cost of mobile app development is your platform choice. If you are building an app for one platform, the developing cost will be less expensive than building an app for both.

However, developing a mobile banking app on both platforms will help increase your audience reach and revenue.

Cross-platform development frameworks like React Native or Flutter save costs by building one codebase for both platforms.

App Features and Functionalities

The more features your mobile banking app offers, the higher the development costs will be.

Essential features like user registration, payment services, card management, and security integrations are necessary, but if you include additional features like budgeting tools, savings accounts, and real-time notifications, they can add to the development cost.

Design Complexity

A mobile banking app requires an intuitive design that allows users to navigate the app's features and functionalities easily. However, the more complex your Android or iOS app’s design is, the higher the cost will be.

Complex design features like custom animation, unique layouts, and detailed visual elements add to the cost of mobile app development because it will require more time and skilled designers.

Development Team Location and Expertise

The cost of hiring developers and designers varies by location. In the UK, developers usually charge higher hourly rates than in countries like India, Eastern Europe, or Southeast Asia. The cost will also vary based on the type of team you hire:

Freelancers

Affordable but may lack expertise in fintech.

In-House Team

Reliable but costly, ranging from £50,000–£100,000 per project.

Development Agency

High-quality, end-to-end service, costing £70–£150 per hour.

Technology Stack Used in Banking Apps

The technology you are using to develop and design the app also plays an important role in influencing the cost of building a mobile banking app like Monzo.

The database, frameworks, and programming languages for app development can help enhance the app’s efficiency and scalability, but it will also impact the development costs.

Project Management and Communication

Effective project management and communication help prevent cost overruns.

The delays and additional expenses can add to costs, making it essential to ensure proper project management for a smooth execution of the project. Clear communication also helps avoid misunderstandings and delays.

Security and Compliance

For a mobile banking app, security is the most important factor. The complexity of the requirements, like secure authentication methods, encryption, data protection mechanisms, and regulatory standards, can impact the development cost.

Key Challenges in Developing a Banking App

Developing a mobile banking app like Monzo can be challenging, increasing the need for careful consideration and planning. Here are the key challenges in building a banking app.

Security and Compliance

One of the biggest challenges is ensuring the best security. Implementing security features such as end-to-end encryption, two-factor authentication (2FA), and biometric verification is essential.

Integration with Legacy Banking Systems

Integrating APIs for payments, account management, and online transactions smoothly can be a challenging process, which requires skilled developers and thorough testing to ensure a smooth process.

User Experience and Design

Another challenge is providing a user-friendly experience while maintaining a professional design. That is why this increases the need for impressive creativity, and continuous testing can ensure the app meets user expectations.

Scalability

As the app grows, the backend infrastructure should handle increased traffic without affecting the app’s performance. A lack of proper planning for scalability can result in crashes, poor user experience, and more.

Cost and Time Management

Developing a banking app like Monzo can be expensive and time-consuming. So, managing the development timeline while maintaining quality can be quite difficult. Proper project management and cost optimisation can help deliver the app on time and within budget.

Real-Time Transaction Processing

This is an essential feature of any banking app. Your banking app should be able to manage large volumes of data effectively and quickly. Any transaction delay or failure can affect user trust, leading to user dissatisfaction.

How to Reduce the Cost of Development?

If you are also looking for ways to reduce development costs but also want to achieve the best quality, here are some strategies that you can implement and utilise when building a mobile banking app.

Prioritise Features in the MVP

You can start with MVP (Minimum Viable Product) and include essential functionalities like user onboarding, balance checking, and secure transactions. This helps reduce upfront costs and allows you to test the market response.

Use Cross-Platform Development Tools

You can use cross-platform app development frameworks to build one app that works on both platforms, which will help save time and resources and eventually reduce development costs.

Outsource Development Teams

Consider outsourcing development teams in regions where the development costs are low. However, ensure the team has expertise in fintech and follows compliance standards.

Opt for Open-Source Tools

You can use open-source tools for features like authentication, database management, and cloud services. It can reduce development costs while maintaining performance.

Optimise Design and User Testing

You can start by focusing on clean, simple, and user-friendly interfaces instead of investing in complex designs.

Utilise Pre-Built Solutions

Use pre-built solutions and APIs for essential features like payment gateways, KYC (Know Your Customer), and transaction systems.

Arramton’s Expertise in Developing a Mobile Banking App Like Monzo

Building a mobile banking app like Monzo using traditional strategies and methodologies can result in the challenges mentioned above.

At Arramton, we can develop custom and high-quality mobile banking apps like Monzo that meet your business needs. Our expertise in fintech app development ensures your app stands out in terms of functionality, security, and user experience.

Our team of experienced developers can build banking apps that meet modern fintech standards and emerging technology in banking.

Arramton offers end-to-end mobile app development services, including post-launch maintenance and updates. It allows your app’s performance to remain smooth and effective.

We offer custom solutions that match your budget. If you are looking for an experienced fintech iOS and Android application development company, Arramton is the best choice because it will build a mobile banking app like Monzo that drives business growth and user encouragement.

The Bottom Line

The above blog explores the Monzo app and why building such an app can be beneficial. It also includes the essential features that almost every mobile banking app offers.

We learned the cost of developing a mobile banking app like Monzo in the UK, which can vary depending on the app's complexity, features, and development approach.

Key factors such as the app’s functionalities, design complexity, development team location, and technology stack can influence the total development costs.

The development costs can be reduced by starting with an MVP, utilising cross-platform development tools, and outsourcing to skilled fintech development teams.

Partnering with an experienced fintech mobile development team like Arramton can ensure that you get the best mobile banking app development solutions based on your needs.

Contact Arramton today to get started with your mobile banking app and turn your fintech business idea into reality.

Frequently Asked Questions

Q1 What is the average cost of building a mobile banking app in the UK?

Ans: The average cost to build a mobile banking app ranges from £30,000 to £200,000, depending on the features, design complexity, and development team.

Q2 How long does it take to build a banking app like Monzo?

Ans: Developing a mobile banking app takes between 6 to 12 months. However, the timeliness can vary depending on the app’s complexity and team size.

Q3 What are the must-have features for a banking app?

Ans: The essential features every banking app should have include secure user onboarding, payment integration, real-time notifications, spending analytics, and biometric authentication for security.

Q4 Why is compliance so important for fintech apps?

Ans: Compliance with regulations like GDPR and PSD2 is important for fintech apps, as it ensures legal operations, protects user data, and builds customer trust.

Q5 Can a mobile banking app be developed on a small budget?

Ans: Yes, mobile banking apps can be developed on a small budget using a Minimum Viable Product (MVP), as it helps reduce the initial costs, and you can also add more features as the app grows.