How Much Does It Cost To Develop A Fintech App In 2023

Introduction

With the exponential growth of technology, the financial sector is also growing at an unfathomable speed. With this, the evolution of fintech mobile apps also increases. Many companies have started their separate finance apps that cater to online payment or other facilities a BFSI industry requires. But the common question that most companies ask is the cost of fintech app development. This article will give you a holistic idea about fintech app development, which fintech app development company to choose, factors on which the cost depends, and how fintech mobile app development companies are expanding.

What is Fintech?

Fintech is a terminology that helps describe technological aspects that seek to improve financial sectors by automating or better enabling financial services. At the core, leveraging fintech systems, companies, businesses, financial departments, and owners try to bring efficiency, manage financial operations, and do day-to-day tasks by leveraging specialized financial apps. This term emerged first in the 21st century & was used to denote backend systems associated with computers. Today, with the evolution of mobile phones, the term “Fintech” also covers mobile apps that render financial services.

What is a Fintech application?

Fintech applications are mobile and computer applications that provide companies with various financial operations, automation support, and other monetary tasks through those apps. Developers build such apps with some intention and purpose as per the organization’s requirements. All the cryptocurrency apps, online payment apps, net banking apps, financial business apps, banking apps, etc., come under this. Some Well-known financial apps are Coinbase, Robinhood, Chime, N26, Mint, MoneyLion, etc.

Types of Fintech applications

The Fintech app development, especially custom fintech app development, has changed the overall BFSI industries landscape. Let us now look at the different Fintech applications companies and various organizations are leveraging.

Wealth Management and Investment apps

With the advent of data analysis algorithms and tools that come along with these fintech apps, individuals and organizations can maintain their assets from one single point & keep track of what’s going up or down with the help of analytics. Investment solutions can help manage their financial portfolios and invest in any organization from any part of the world through that app’s management dashboard. These apps also help in wealth rebalancing.

Digital Payment apps

All modern users prefer to use e-wallets rather than credit cards or cash. With the advent of digital payment apps and digital banking, individuals can send money to others through phone numbers, UPI numbers, email IDs, etc. Even unique QR code has become a trending way of sending money to others. Such apps eliminate the use of sending funds through the traditional standing-in-the-queue process.

Lending and Loan apps

Because of fintech mobile apps and web apps today, a massive headcount of people can apply for loans through their smartphones only. Fintech mobile app development companies focus more on new data points to better comprehend the risks associated with the loan process or the app security & expand the credits to the non-affordable populations across the globe. Also, clients can request financial reports many times in a year without revealing their scores. That drives the whole backbone of lending money in a much more transparent manner.

Insurance App

Insurance companies have started utilizing digital solutions to automate lots of parts and help provide a better client experience. Through these apps, clients can acquire new insurance services, take a look around different services that the organization caters to, and directly claim for insurance completion at any time from the app. Even filling the forms & connecting the customer care executives have become smooth through these insurance apps.

Trading apps

Trading apps are another category of financial apps that comes under the fintech domain. With the help of online trading, individuals and organizations can invest in the market & different organizations, buy shares, monitor the risks, and share tips on how to invest. Registering on such apps, applying, and accomplishing the investment through digital money has become much more straightforward through such apps.

Cryptocurrency apps

Lately, cryptocurrencies have been in the news & are becoming the next-generation currencies that run on blockchain technologies as a decentralized system. Crypto apps are also a part of financial apps. Numerous firms have come up with apps like WazirX, Unocoin, CoinDCX, Zebpay, CoinSwitch Kuber, Bitbns, etc., that can help manage cryptocurrencies, convert from one to the other, and trade through cryptos. Users can even transform their regular currencies to cryptocurrencies through these apps.

So, before developing any fintech app, there are particular questions that every company asks.

• What functionalities does a fintech mobile app provide?
• Which fintech app development services to take?
• What are the fintech app development costs?
• What are the factors affecting the fintech app development costs?

These are some common questions often asked. Let us now address these questions one by one.

Functional Characteristics of a Fintech App

Fintech is an exponentially growing domain, and the fintech apps are leveraging the latest technologies like Artificial intelligence (AI), Machine Learning (ML), Application Programming Interface (API), blockchains, data science & analytics, etc. As the Custom Fintech app development trend is rising, companies are explicitly tweaking the functionalities through the developer as per their requirements. Let us look at the various characteristics and functionalities – where companies can put their thoughts for tweaking a customized fintech app.

• Integrating different dependencies and APIs: Integration in fintech apps means cross-platform synchronization and combining capabilities with multiple systems. Many business owners and individuals require apps to cater to numerous financial functionalities under one umbrella. Developing an app that can render various tasks like online payment, financial resource management, crypto transactions, etc., will require different integrations through APIs and dependencies. Often, these dependencies incur costs for integration and using third-party APIs or libraries.
• Personalization through data-driven and AI-based technologies: Everyone wants their apps to personalize all internal operations as per user requirements. That becomes possible when data science and artificial intelligence work in close tandem. With data-driven understandings and Machine Learning models in place, financial apps can better comprehend the users’ requirements and desires. Those fintech apps having ML algorithms can help personalized the demands and operations, as per user preferences, making the app more user-friendly. But a fintech mobile app development with an ML algorithm will incur an added cost as the development firm will have to leverage ML engineers and developers.
• Authentication: Where there is money, there is the risk of theft. Since fintech deals with digital money, the chances of threats mostly tend towards cyberattacks. Cybersecurity has become a sensitive subject for fintech apps because no user wants a brand new app that does not cater to exceptional security measures. Authentication screens (sign-up and login) are the most commonly used app sections for secure access. That is where developers should implement multi-factor authentication (MFA), passwordless authentication, or risk-based authentication methods for secured access to financial resources. To check the security of such apps, these custom fintech app development firms usually hire penetration testers or check via the QA team.
• Data tracking and analysis function: Today, almost every fintech company and organization wants to analyze and track all financial data and transactions through visualizations and interactive ways. In this busy work-life, every organization & employee wants to track their economic status and transaction history through visuals. If the app caters to all the accessible information under one dashboard with visual representation and rich graphics, organizations and business executives can easily see the financial transactions in real-time through the internet. Organizations can also see trends, user interactions, financial habits, etc., through these graphical stats and analyses. Adding all these to your application brings in more value but, at the same time, adds to the fintech app development cost.
• Cloud-based functionalities and services: All modern apps largely depend on cloud technology because they are scalable in terms of storage and processing. Although the adoption is still growing slowly, companies leverage the cloud because of its flexibility, security, and scalability. With the exponential growth of financial data in finance companies and their associated apps, the cloud will be the best technical alternative to scale the storage and processing efficiently instead of on-premise infrastructure and data centers. Adding a cloud-based development to fintech mobile app development also adds separate costs but is comparatively better in the long run.

Cost to build three different types of Financial Apps

Let us consider three distinct forms of apps and understand their development time and cost (approx.).

i. Lending Fintech App Development

ii.Banking Fintech App development

A fintech app development company will roughly take 3550-3600 hours with an approximate overall cost of USD 287,000 to complete a banking app.

iii. Insurance Fintech App development

A custom fintech app development company will roughly take 1300-1400 hours with an approximate overall cost of USD 125,500 to complete an insurance app.

Conclusion –

It is essential to find suitable fintech app development services that can provide you with the proper development of a fintech mobile app or web app. Choosing the right fintech app development company also allows clients to build custom apps with various mentioned features like AI, ML, cloud computing, data analytics, etc. RV Technologies (https://rvtechnologies.com/about-us/) is one solution that can cater to you with custom fintech app development options.