Digital transformation in the financial aspect has been following quickly for the past few years. In increasing to new market beginners, the current players are investing in technology solutions to gain/retain customers. With all this technology selection happening, financial institutions must know how much it cost to build a FinTech mobile app.
Before moving forward with the FinTech market top trend and the constituents that affect the cost of FinTech mobile app development, let’s know how much it cost to develop different types of FinTech apps like e-wallets, investment apps, and banking apps.
A basic e-wallet app will cost around 25,000 to $50,000, whereas a wallet with advanced features such as third-party service and bill payment integration will cost $75,000 to $100,000.
A mobile stock trading app will cost $60,000 to $90,000.
A banking mobile app will cost around $90,000.
An Expense manager app will cost between $35,000 to $45,000.
To give you an idea, all other FinTech apps will cost between $20,000 to $100,000. However, the figures that I gave you are ballpark estimates. The cost to FinTech app development depends on various factors including the features you want to incorporate, the platforms you want to build for, the development team’s location, and the third-party services you want to integrate.
Among all the factors that affect the cost of FinTech app development, features and functionalities are the most important. So, let me take you through the crucial features that every FinTech app should have.
First of all, not every mobile app feature is necessary for your FinTech app. Different types of FinTech apps require different sets of features and functionalities. Here, I’m mentioning the features every FinTech app should incorporate.
Seamless Onboarding. The user registration and log-in should be straightforward. FinTech apps are supposed to be compliant to the strict industry norms. Regulations like KYC (Know Your Customer) and AML (Anti-Money Laundering) have made it difficult for FinTech application development companies to design user-friendly UX. Currently, the best way to optimize customer onboarding is to get most of their data from social accounts, and ask the customers to verify their identity when they opt to use your FinTech services.
Additional Financial Services. It is inefficient to build a FinTech app for just one purpose, especially when other relevant services are easy to accommodate into your app. You can offer additional financial services like expense management and financial budgeting with your FinTech app.
Push Notifications. Of Course, push notifications are a must for every mobile app and the FinTech apps are no exception. FinTech apps make use of three types of push notifications. First is the Transactional Notifications that notify users about their financial transactions and account updates. Second, on the list is the Application-based Notifications that notify users about document submission or password changes. Third, on the list is Promotional Notifications that FinTechs use to grab the user’s attention for discounts and offers.
Two-Factor Authentication. I know we’ve talked about security a lot. But when it comes to banking and financial services, security should be the foremost priority. The solution to security challenges in Banking and FinTech isn’t to make it cumbersome for the users to log in. This will only lead to app abandonment from users. Two-factor authentication is the perfect and proven solution for app security, without making the log-in a hassle. You can make use of biometric authentication as most of the smartphones in 2021 have fingerprint scanners.
Now, the question here isn’t “Whether you should outsource your FinTech development or do it in-house”. Outsourcing FinTech app development helps FinTech companies drive faster ROI.
The real question is “To whom you should outsource?” Here, I’m mentioning the factors that help you choose the right development partner for your FinTech project.
Technical Competence. It is one of the key reasons why banking and financial companies opt for outsourcing FinTech development. It is inefficient for banking and financial companies to hire and manage technical resources in-house. Outsourcing allows them to gain access to technology without the hassle of managing the software development. Make sure that the company you hire has expertise in the required technologies for FinTech development.
Domain Expertise. FinTechs have to deal with several industry regulations and have to build robust and secure apps that are compliant to those standards. Hence, during your hunt for the right development partner, you should make sure that they have expertise in the FinTech domain.
Preferred Development Methodologies. Some FinTech development companies are good with clear requirements, while others can handle projects that don’t have detailed requirements. If you’re still unsure about the features that you want to incorporate, the technologies you want to implement, and if you think that your requirements can change over the time, go with the company that is proficient in Agile software development. Projects that have clear requirements can be developed with Waterfall development methodology.
Now you know how much does it costs to build a FinTech app and how to find the right technology partner for your FinTech project, It is time to get it rolling. Many companies that offer FinTech application development services,that will suggest you incorporate too many features into your app that do not provide value to your users. However, the best practice is to test your FinTech app idea by launching an MVP (Minimum Viable Product) and get user feedback. Based on the feedback, you can improve your app structure and design and then launch a fully-functional app.