Fintech App Development Cost in 2023-2024: How to Estimate It?

A fintech app has clear benefits over traditional financial services with advanced technology and reduced costs.
It has made financial serv ices more accessible with features like online banking, digital wallets, automated investment management, and cryptocurrency trading.

According to the Globenewswire report, the fintech market is estimated to reach $699.5 billion by 2030. The need for fintech apps among businesses is expected to increase as banks and insurance companies increasingly replace outdated operating systems with cutting-edge technologies.

Therefore, if you are planning to develop a fintech app for your business, now is the best time to do so. But you might think about the cost implications of how to develop a fintech app. In this article, we have covered a predicted the costs of developing a fintech app as per their different types. So, stick around to get all the details about fintech app development costs.

What is Fintech?

Financial technology, better known as fintech can be described as a new technology that aims to improve and automate the delivery and use of financial services.

At its core, fintech is used to assist big companies, business owners, and consumers in better managing their financial operations and processes. When fintech emerged in the 21st century, initially the term was applied to the technology employed at the backend systems of giant financial institutions, such as banks.

Further, from 2028 to 2022, there was a shift to consumer-oriented services. Now fintech includes different types of industries such as education, retail baking, fundraising, and investment management.

Fintech additionally includes the development and use of cryptocurrencies, such as Bitcoin.

Broadly, the term “financial technology” can apply to any innovation in how people transact business, from the invention of digital money to double-entry bookkeeping.

Broadly, the term “financial technology” can refer to any innovation in how people transact business, from the invention of digital money to double-entry bookkeeping. Since the Internet revolution, financial technology has grown exponentially.

Overview of the Fintech App Market

The Global Fintech Market is estimated to reach $305 billion by the end of 2025. In 2020, fintech startups scooped up 105.3 billion in funding. By attracting new investors and implementing technology-driven solutions, the largest companies contribute to that growth.

The main aspects that have caused the rise of fintech across the globe are:

» The implementation of Blockchain in various industries.

» The growing demand for digital payments.

» Reinforcement of financial data security.

» Digital connectivity.

» Open-source software and cloud computing.

» Regulatory changes.

However, the fintech sector also faces some difficulties that slow down the adoption of financial innovations such as lack of trust in financial institutions, challenges of blockchain, big data and AI integration, regulatory and compliance laws and privacy concerns.

To manage industry dynamics, fintech app providers need to focus on the flexibility of their software architecture and be ready to adapt to market trends and technological changes.

Types of Fintech and Fintech Products

Fintech covers a wide range of use cases across multiple markets from business-to-business (B2B), and business-to-consumer (B2C) to peer-to-peer (P2P) markets.

Below are only a few examples of the types of fintech companies and products that are rapidly changing the financial landscape.

⇒ Fintech Banks

The banking sector has been shaken up by the fintech industry, which is one of the most central elements of the financial systems.With multiple fintech solutions, tasks such as account opening and funding as well as a reduction in fraudulent sign-ups are now quick and easy.

Fintech products such as Varo provide flexible personal checking accounts, high-yield saving accounts, and even secured credit cards, all without the traditional fees that can hinder many people from achieving their financial goals.

⇒ Digital Payments

Cashless payments are rising insanely fast, since the onset of the pandemic, cashless payments have made a huge shift, with 41% of the USA population saying all their payments in a week are digital, up from 29% in 2018.

Today, the payment apps and services have become more and more common. That’s because the payment via these fintech platforms is less expensive as well as saves a lot of time.

In India, internet banking apps such as HDFC allow users to instantly connect their bank account to the app to carry out digital payments and other banking services.

⇒ Personal Finance Management (PFM)

A Personal Finance Management (PFM) app is a mobile web-based fintech application that includes the financial information, activity, and control of a user. A user can benefit from these apps in ways including:

» Instantly can view their account balance

» Transfer money

» Get spending reports

» Create budgeting filters

» Enable transaction notifications and more

Additionally, some of the most obvious benefits of PFM are:

» Users can access all information with ease and convenience on their phone

» No need to wait in bank branch queues or long phone calls

» Everything is in one place

» Everything is saved digitally

The Main 5 Fintech Apps

Fintech is a broad term, including different types of applications and products as we have discussed a few above. However, after thorough research, we have pointed out the main 5 types of fintech apps and estimated their costs and features:

1. Banking App

2. Lending App

3. Investment App

4. Insurance App

5. Consumer Finance App

⇒ Banking App

The mobile banking app development cost includes the client side and admin costs. The client-side allows users to check their current account balance and transaction history, transactions to other bank accounts, schedule payments, send peer-to-peer (P2P) payments, and more. On the other hand, an admin panel is established for handling user’s profiles and money transactions.

The most popular examples of banking apps in India are State Bank of India, ICICI Bank, Axis Bank, Bank of Baroda, Kotak Mobile Banking App, Bank Of India, HDFC mobile banking, and more.

Now let’s take a look at the estimated development time and features of Flutter based banking app:

⇒ Lending App

Peer-to-peer lending apps allow to connect users who are ready to loan money with people who need money. Such apps are useful for people who want to borrow a little cash against their next payment.

For example, LenDenClub is one of India's fastest-growing P2P lending platforms. It serves over a million customers with over 19,000 pin codes. With its digital lending application InstaMoney, the platform aims to increase its outreach to pan-India and increase financial inclusion.

The following are the features and development time of a lending app based on Flutter:

⇒ Investment App

Investment apps allow users to review and invest in several financial assets. By providing users with relevant analytics data, investment management solutions help investors to increase their investment performance.

For an example of an investment app, Groww is one of India's growing investment apps where users can find their investment solutions pertaining to mutual funds, stocks, US Stocks, and more.

Now let’s have a look at the features and development time of an investment app based on Flutter:

⇒ Insurance App

Insurance apps enable quick and easy communication between an insurance company and its customers. There are different kinds of niche-specific insurance apps, which can be:

» App for travel insurance: These apps help people get information related to health and security in their destination country, weather info, and flight changes.

» App for car insurance: A car insurance app allows users to collect all necessary information regarding the car accident since drivers use cameras to take a picture of the accident.

» Apps for sales management: These apps help workers quickly and easily get access to sales and marketing information.

» Apps for insurance brokers: Assists brokers in managing insurance product life cycles and offers customers an omnichannel experience.

» Apps for claims settlement: This app is developed to manage handlers' requirements.

All of these above-mentioned apps have different features and functionalities, thus the final prize will depend on industry-specific features. However, we have estimated the cost based on general features that are similar for different types of insurance apps.

Here are the features as well as the development time of the insurance app:

⇒ Consumer Finance App

Consumer Finance apps are used for handling user’s finances. These apps help them to plan their spending so as not to spend more than planned.

One of the examples of these apps is Money Manager, It makes managing personal finances easier for customers. Record their personal and business financial transactions, generate spending reports, and manage their assets with Money Manager's spending tracker and budget planner.

The following are the features and development time of a consumer finance app based on Flutter:

Fintech App Development Cost

Now that we know the main types of fintech apps let’s come to our primary topic, what will the fintech app development cost?

So the fintech application development cost will be mostly influenced by the delivery time. For instance, if you want a fintech app in a very short time, the financial app development company has to increase teamwork for rapid prototyping and development.

As a result. The team that works on the development project with a shorter delivery timeframe will demand a higher cost. Also, the cost of your fintech app will depend on the type of mobile app that is being developed, what features you want, and where you are located or hiring a developer team.

However, to help you get a better idea of the cost, below we have estimated the final price of creating a fintech app by the type of application based on the average software development cost of $50/h in Europe:

If you are confused about how we calculated the final price first we added development and undevelopment time, and after that, we multiplied the time with the given hourly rate.

Also, we have calculated the MVP version of each service. If you want advanced features in your app, you will have to pay more.

Factors Influencing the Cost to Develop a FinTech App

As we have already discussed above,  the calculation of a fintech app development cost depends upon many factors.  These factors directly influence the prize and have a huge impact on the overall app development budget.

A few primary factors that influence a fintech app's cost are:

⇒ App Requirements

The app requirements are the first factor that influences fintech app development costs. There are main two aspects to app requirements, the scope of work and the level of app complexity.

The scope of work is quite simple to understand, the collections of features that the fintech app must have or the efforts required to develop these features fall into this aspect.

App complexity, on the other hand, refers to how complex an application development concept is. App developers often face more difficulty and spend more time in building, testing, and deploying an app than in its concept is sophisticated.

⇒ Location of Developers Team

The location of the developer team or app development company that you have hired to build your fintech application is another significant factor that determines the cost.

Depending on the hourly rate of the developer team which is usually 4-7 specialists, and the time taken to develop an app in a specific country. For instance, a fintech app development company in a country like the US typically charges more than a company in India.

⇒ Interactive UI/UX

Developing a fintech app with interactive or user-friendly interfaces is worthwhile to try. A seamless app design can improve the overall user experience. By creating an easy-to-use and intuitive interface, UI design enhances the user experience and makes the fintech app more appealing to interact with.

Since the success of an app heavily relies on user engagement, a well-designed UI not only attracts users initially but also keeps users engaged.

⇒ Technologies Used

There are multiple advanced technologies that have been used by developers to build a more powerful and appealing app.

Today, technology such as AI influences the cost of developing a fintech app for businesses. Most financial apps often rely on extensive processing requirements.

These apps support the usage of artificial intelligence in various ways. For instance, AI enables user-friendly chatbots, sophisticated financial planning, the identification of fraudulent conduct, as well as trustworthy transactions in fintech applications.

⇒ App Maintenance

If you want a fintech app for your business, then you must also take maintenance costs into account while calculating the cost to build a fintech application. After the developers have built and deployed your fintech project ideas app, its maintenance with respect to regular upkeep becomes a top priority.

Aside from this, in order to keep your business scaling, the features and functionality of your app should also be regularly updated. However, you need to keep in mind that all of these costs add to your final fintech app development cost.

Innovative Trends in Fintech App Development

Fintech app development trends are rapidly changing into increasingly lucrative ones for big companies as well as small businesses.

A few latest fintech app development trends have emerged due to increasing growth in the tech sector.

The key innovative fintech app development trends are:

» Blockchain Technology

» Artificial Intelligence (AI)

» Big Data

» Microservices

Let’s discuss them in detail below:

⇒ Blockchain Technology

Blockchain is a transparent, distributed, immutable “chain of blocks”, that holds time-stamped records and data. In simple terms, it is a decentralized ledger, which makes it highly secure to store data. As a result, blockchain is highly dependable for fintech app development.

Today, many companies are moving to blockchain-based fintech apps because of their transparency, immutable, and high security. Blockchain makes transaction record-keeping more reliable and transparent as everything will be recorded and stored on the blockchain.

⇒ Artificial Intelligence (AI)

Artificial intelligence (AI) is helpful in recognizing input data patterns and analyzing them. As we have discussed earlier, AI enables user-friendly chatbots, sophisticated financial planning, the identification of fraudulent conduct, as well as trustworthy transactions in fintech applications. Additionally, in-depth data analysis with AI will help financial service providers create more personalized policies and increase revenue streams.

⇒ Big Data

Big data helps financial service providers build a highly reliable fintech app that would provide its users with everything they need.

Further, data analytics enables businesses to figure out user patterns and provide valuable insights from the app’s massive amount of data.

⇒ Microservices

Technologies such as blockchain and AI improve the performance of microservices. Microservices are beneficial to ensure that the app is structured as a set of integrated features and services. The fintech app becomes faster and data is managed in a decentralized manner. It also reduces the amount of money and time invested in the fintech application development process.

Conclusion

Developing a fintech app is certainly an investment worth making if you spend your money in all the right places. As a business owner, think about how your costs can vary according to geographical and development requirements.

Additionally, hiring an experienced app development team is hi ghly beneficial because they will offer you their expertise and build a fintech app as per your needs. Hopefully, now you have a better idea about the time and costs of developing a fintech application.

Consider all the factors mentioned above so you can get the best out of your money. We’d suggest you hire a remote app development company because that can save a lot of money. Arramton Infotech is experienced in developing high-quality finance applications, customized according to client needs. To start building your fintech app, get in touch with us.

Frequently Asked Questions

Q1. How much does it cost to build a fintech application?

Ans. The average cost can vary depending on the type of application, its features, country, and the timeframe.

Q2. What is a fintech software?

Ans. Fintech software refers to any software, or technology that allows users or businesses to digitally access, manage, or gain insights into their finances or make financial transactions.

Q3. What are the different types of fintech apps?

Ans. There are multiple types of apps in the fintech industry, such as banking apps, lending apps, investment apps, insurance apps, and consumer finance apps.

Q4. How can businesses benefit from hiring a fintech software company?

Ans. Businesses can get valuable benefits from working with a fintech software company:

» In-depth fintech development expertise

» Adding P2P payments and payment gateways into apps

» Implementing advanced technologies

» Adding many useful features