How Much Does It Cost to Develop a Fintech App + Factors and Estimates In 2024

Are you interested in building a FinTech app?

There are various types of fintech apps you can build, from simple budgeting tools to complex investment platforms.

However, one crucial question remains: how much will it cost to build a mobile app?

To answer that question, this article will show you all the factors that will influence the budget and the estimated costs for different app complexities.

Therefore, you can make informed budgeting decisions.

What is a Fintech App?

A Fintech app, short for Financial Technology application, is a software program designed to provide financial services conveniently and efficiently through a mobile device.

It offers a wide range of features that can make managing your money easier.

For example, here are some common functions of Fintech apps:

• Mobile Banking: Manage your accounts, transfer funds, pay bills, and deposit checks remotely.
• Payment Processing: Make secure and instant payments for goods and services.
• Personal Finance Management: Track your income and expenses, create budgets, and set financial goals.
• Investing: Buy and sell stocks, bonds, and other investment products.
• Cryptocurrency Trading: Trade digital currencies like Bitcoin and Ethereum.

From budgeting to investing, fintech apps have become an everyday staple.

Here are a few fintech apps out there you might recognize:

• Venmo: A mobile payment service that allows users to send and receive money easily.
• Robinhood: A commission-free investing platform that lets users buy and sell stocks, ETFs, and options.
• SoFi: A financial services company that offers loans for various purposes, including student loan refinancing and mortgages.

Developing a fintech app is indeed tempting, considering the global fintech market which is worth USD 340.10 billion in 2024, and is forecasted to reach USD 1,152.06 billion by 2032.

But before starting the development process, it would be wise to understand the estimated costs needed for building your app.

What Is the Typical Cost to Build a Fintech App?

The cost of developing a Fintech app can vary significantly depending on several factors, such as your app’s functionalities.

However, we can provide a general range to give you a starting point for budgeting.

Developing a FinTech app in 2024 can range anywhere from $30,000 to $300,000 or even more.

This broad spectrum reflects the vast differences in the app’s features and the expertise of development teams.

To give you a more concrete idea, let’s explore the estimated costs based on app complexity:

• Basic (Starting at $50,000): This category includes a simple budgeting app with features like expense tracking and basic financial goal setting.
• Average ($100,000 – $300,000): It could include a mobile banking app with features like account management, bill payments, and money transfers. The development cost will increase as features become more intricate.
• Complex ($300,000+): These apps offer sophisticated features like cryptocurrency trading platforms or robo-advisors for automated investing. Complex back-end systems, robust security measures, and technologies like AI or blockchain will contribute to a higher development cost.

What Factors Influence the Cost of Building a Fintech App?

As mentioned above, there are several factors that might influence the final cost of fintech app development.

Here’s a breakdown of them:

1. App Complexity

This is the most significant cost driver.

The more sophisticated the features of your app, the longer the development time and the higher the cost.

• Simple Features (Low Cost): Basic features like user login, expense tracking, and basic calculations require less development effort and incur lower costs.
• Complex Features (High Cost): Features like real-time stock quotes or blockchain integration require advanced development skills, which can lead to a higher cost.

2. Platform Compatibility

Do you want your app to be available on iOS, Android, or both?

Here’s how platform choice affects cost:

• Single Platform (Lower Cost): Developing for just one platform (iOS or Android) is generally cheaper as the development team focuses on a single codebase.
• Multi-Platform (Higher Cost): Making your app accessible on both iOS and Android requires building separate versions or using cross-platform development tools, which can add to the cost.

3. Design Complexity

A user-friendly and visually appealing design is crucial for Fintech apps.

However, design complexity can also impact development costs:

• Basic Design (Lower Cost): A straightforward design with standard UI elements requires less design time and resources.
• Custom Design (Higher Cost): Creating a unique and custom user interface with complex animations or interactions will involve more design work and increase the cost as well.

4. Security Measures

FinTech apps handle sensitive financial data, so ensuring security is highly important.

The level of security implemented can affect development costs:

• Basic Security (Lower Cost): Implementing standard security features like user authentication and data encryption might be sufficient for basic apps.
• Advanced Security (Higher Cost): Integrating multi-factor authentication, biometric logins, and high-level encryption protocols for sensitive financial data will require additional development effort and expertise, thus increasing the cost.

5. Development Team Expertise

The experience of your development team will also play a significant role:

• Less Experienced Teams (Lower Cost): Working with developers with less FinTech experience can be more affordable, but there’s a risk of encountering challenges during development, which might lead to delays and cost overruns.
• Highly Experienced Teams (Higher Cost): Hiring developers with extensive FinTech experience is the better choice as their expertise ensures a secure, high-quality app.

How Long Does It Take To Build a Fintech App?

The development timeline for a FinTech app can vary greatly depending on its functionalities.

Here’s the explanation:

• Basic (3-6 Months): Limited features translate to less development effort. Since these apps often use pre-built functionalities, it can definitely reduce development time.
• Average (6-12 Months): Advanced features such as mobile banking with account management, bill payments, or investment tracking will potentially extend the timeline.
• Complex (12 Months or More): These apps involve sophisticated technologies and complex back-end systems. So extensive development effort is needed to ensure functionality, security, and scalability.

However, these are just estimated time frames.

The actual development time can be influenced by the factors mentioned previously, such as the development team’s expertise and platform compatibility.

How to Successfully Grow Your Fintech App?

Building a Fintech app is just the first step.

The real challenge lies in attracting users and establishing a loyal user base.

Here are some tips to ensure your FinTech app thrives in the competitive marketplace:

1. Focus on a Specific Niche: Identify a specific pain point or unmet needs in the financial services sector. Then, tailor your app to address it effectively.
2. Prioritize User Experience (UX): Make your app intuitive, user-friendly, and visually appealing. A smooth and seamless user experience will keep users engaged and coming back for more.
3. Pay Attention to Security: Since FinTech apps handle sensitive financial data, building trust is crucial. Implement security measures and ensure complete transparency about your data security practices.
4. Market Your App: Develop a comprehensive marketing strategy to reach your target audience. Use various channels like social media marketing and strategic partnerships to create brand awareness and drive app downloads.
5. Gather User Feedback: Actively seek user feedback through surveys, reviews, and in-app communication tools. Use this valuable data to identify areas for improvement and enhance your app’s functionality based on user needs.
6. Provide Excellent Customer Support: Responsive and helpful customer support is essential for building user trust and loyalty. Offer multiple channels for users to reach your support team.

What Are the Risks and Challenges of Building a Fintech App?

The fintech app market also comes with inherent risks and challenges.

Here are some obstacles you might encounter along the way, so you can anticipate them:

1. Regulatory Compliance

The financial services industry is heavily regulated.

You’ll need to ensure your app complies with all relevant financial regulations and data privacy laws in your target market.

This is important, because non-compliance can lead to fines, legal repercussions, and even app shutdowns.

2. Cybersecurity Threats

FinTech apps often become targets for cybercriminals due to the sensitive financial data they handle.

Data breaches and security vulnerabilities can damage user trust and ruin your app’s reputation.

Therefore, implementing robust security measures is important to protect user information and prevent financial fraud issues.

3. Integration Challenges

FinTech apps often need to integrate with existing financial institutions, payment gateways, and other third-party services.

So you need to ensure smooth data exchange and functionality across these platforms.

Sometimes, integration issues can lead to bugs, glitches, and a frustrating user experience.

Moreover, debugging and troubleshooting integration problems can be time-consuming and expensive as well.