The Development Cost for a Full-Fledged Banking App

Today, the banking sector is going through a massive transformation, with the lion’s share of users going online. People longed for innovation before COVID-19, while the pandemic pushed even technology-resistant users for a digital transition. Thus, the size of digital banking is projected to reach $18+ billion in 2022, with a 2026 estimate of $30+ billion.

Naturally, these lucrative growth figures cannot be ignored by banking businesses. Startups join the banking services industry with innovative and user-friendly apps and platforms accessible on the go. To stay afloat and keep the client base, even traditional companies are pushed to explore the digital space.

Now that you understand the power and potential of digital banking, it’s time to build a finance app for your business success. But can what app can you afford, and what costs should you factor in when calculating the development budget? Here is a quick guide to calculating the app development costs and factors you need to consider in the estimation.

App Type

First of all, you need to be clear about the type of app you want to create for users. The versatility of features is not always good; users need to understand the sense and purpose of your product to want it. Thus, you should clarify the type of financial activity enabled by your solution. It can be:

• Internet banking
• Finance tracking and wealth management
• Personal financial advice
• Exchange trading
• Money transactions in the digital space
• Convenient billing
• Digital insurance, loan, or mortgage services
• Financial risk analytics

These and many more services can be provided with handy, user-friendly apps. Thus, refining the focus and specialization of your planned product is the first step to clear software development specifications and budgeting.

Fintech apps deserve a separate mention here, representing a new niche in the digital finance sector. Fintech solutions offer a combination of innovative technology and traditional finance to simplify access to finance for users. These apps are very popular among customers worldwide, and your startup can ensure a smooth entry to the market with such offers:

• Loan and lending
• Robo-advisors (trading tips and money management)
• Payment processing
• Regtech
• Tax filling assistants
• P2P payment solutions
• Crowdfunding apps
• Investment advisors
• Blockchain-powered products

App Cost Determinants

Next, you need to understand the general components of an app’s price. What features increase it? At what point can your project be regarded as a complex one? Here are the key pointers for determining the budget.

1. The number of development hours. The initial estimation of the project’s complexity is a vital step in calculating its cost. If you want to create an MVP first, the cost will reduce by half. If you want a full-scale functional app, be ready to pay the full price.
2. Developer rates. The cost of your project is the number of work hours multiplied by the hourly developer rate. Thus, to understand the costs, you need to first inquire about the rates. They depend on the tech stack you need and the geography of your coder team; those working in North America typically charge around $100 per hour, while Latin American, Asian, and Eastern European coders can work for $20-$50 per hour.
3. Post-launch maintenance. The app development process doesn’t end with its technical coding and launch. You need to have the development team on board 24/7 to address bugs, issue updates, and provide continuous user support. The maintenance cost is not included in the development package, so you need to discuss it separately.

Cost of Specific Feature Development

Now let’s discuss the mandatory minimum of features your app should have and their development cost.

• Sign-in and account creation (120-480 hours of work)
• Access to the client’s card details (60-240 hours)
• Completion of transactions and payments (120-480 hours)
• Spending history and analytics (120-480 hours)
• Notifications about account activities (20-120 hours)
• Customer support and chatbots (100-480 hours)

The overall time for such a basic app’s creation exceeds 2,000 hours, which will cost you $200,000+ in North America. Working with an outsourced provider can cut costs 2-3 times, so research the market for reliable outsourcing firms to compare the costs.

Still, the features we’ve just calculated are the basic set for any banking app. You won’t impress or conquer any tech-savvy user with this toolkit. So, you need to add extra features and customize your app for better functionality, user value, and UX. Here are some suggestions:

• QR code scanning (60-120 hours)
• Cashback perks (80-240 hours)
• Payment APIs (e.g., Apple Pay, Google Pay) (80-240 hours)
• Bill splitting (120-480 hours)

Another vital addition is the cybersecurity work on your app. Security matters much in the online space, as user data and finance are extremely vulnerable to fraud and theft. You can enhance user protection with biometrical authentication, one-time passwords, smart password checks, and limited session time. Different agencies calculate the hours of security development differently, from 80 to 480 hours overall, so check the security package with your candidates for software development.

Don’t Agree to Less

As you can see, app development is a time-consuming and costly process. However, you can’t compete with other market participants without a robust, functional, and user-friendly app today. So, find a software provider with reasonable costs and an impressive portfolio. Working with expert coders will guarantee you a competitive advantage and market success.