In recent years, the financial sector has undergone a significant transformation with the adoption of technology. One notable change has been the increasing preference of individuals for mobile banking services over traditional desktop and branch banking. This shift in consumer behaviour highlights a larger trend that cannot be ignored.
As a result, the demand for banking app development is on the rise. If you’re considering building a fintech app from the ground up, one of the first questions that come to mind is the cost of development.
In this blog post, we’ll delve into the various factors contributing to the cost of mobile banking app development and provide an estimated range of expenses associated with creating a secure app.
We’ll also discuss how to get a clear estimate of development costs by consulting with a dedicated fintech software development company.
So, let’s get started.
Factors affecting the cost of developing a secure banking app:
1. App complexity
The overall complexity of the app is the most vital factor that affects the cost of banking app development. For instance, a highly complex app with an extensive feature list will always cost you more as compared to a simple app with minimum features.
Here is the estimated cost of developing a secure banking app as per the app’s complexity:
|Banking app type||Estimated Cost||Time Frame|
|Simple App||$30,000 to $60,000||3 to 6 months|
|Moderately Complex App||$60,000 to $100,000||6 to 8 months|
|Highly Complex App||$150,000 to $250,000||9+ months|
2. Location of the app development agency
Custom software application development is a complex process. Thus, it is vital to hire a dedicated app development agency that has years of experience in delivering apps under a similar niche. Now, the hourly rate of development will also vary as per the region the organization is situated in. For instance, the hourly rate of development in the UK or the US is much higher than the hourly development rates in regions like Asia or Europe.
Here is the estimated hourly cost of development as per various regions across the globe:
|Hourly Rate of Development|
3. The application’s UI/UX design.
Another aspect that affects the overall budget for developing a banking app is the UI/UX design of the app.
Multiple testing phases are necessary for a seamless UI/UX design to ensure maximum engagement and user retention, which raises the cost of the app’s overall development.
4. Size of the team
The size of the hired team for developing a powerful and secure banking app affects the development cost as well. You can, for instance, decide whether to hire independent contractors or in-house developers, or you can simply decide to outsource your project to a fintech software development company.
However, they won’t be able to provide you with distinguished expertise in the field. Nevertheless, hiring freelancers will lower the overall development cost for your project. However, hiring an internal team will increase your overall development budget and require more resources to manage because you will need to conduct interviews and manage the team.
Simply put, giving your project to a specialized company will enable you to benefit from their years of experience while also receiving optimized costs in accordance with your unique requirements.
The banking app’s features will also have an impact on the overall price. For instance, building a banking app with the most features versus one with the fewest features will result in higher development costs.
It should include these fundamental components in a strong banking application:
- Use of an app.
- Account specifics.
- Transfers and payments.
- Transactional history.
- Notifications via push.
- Places with banks and ATMs.
- Chat within the app.
- ATM accessibility.
- Speaking orders.
- Integration of AI.
- System for multiple-factor authentication.
- Encryption from end to end.
- The authentication of fingerprints.
- Instant notifications.
6. There are expenses associated with security
A high level of security must be maintained at all times while a mobile banking application is being developed. To make sure of this, we advise adding a section to the development roadmap specifically for handling any potential security problems.
The latest technologies should be employed to ensure the security of transactions and data stored within the application, and this should be taken into account when calculating the overall cost of development. Consequently, implementing risk-based authentication, biometric data, and other technologies will also have an impact on your overall development budget.
Internet banking is growing in popularity as technology progresses. Large financial institutions are also moving away from physical branches and toward online banking. Numerous mobile banking applications are offered, with varying development costs. The future of banking is clearly moving toward online transactions.
When developing an idea, it is a good idea to work with an app development company.
They can offer advice on how to most effectively identify the idea’s core service, how to launch it in a way that is both cost-effective and successful, and how to lay the foundation for further development and success.
You can make sure that your idea is carried out in the most effective and efficient manner by working with a partner who develops mobile applications.