How much does it cost to build a Fintech App?

There is no uncertainty that the future of FinTech is bright because of the continuous growth of the finTech app industry and its feature innovation. The financial technology market is in trend, and the competition for customers is tense. In addition to new entrants with innovative and creative solutions, the existing banking and financial institutions invest heavily in financial technologies. In this vigorous competition of offering FinTech solutions before someone else grabs the whole market niche, it is becoming essential for FinTech startups, traditional banking, and financial institutions to consider FinTech software outsourcing to make a timely entrance into the market.

Nowadays, more people are migrating towards FinTech digital solutions for their finances. 2021 will see significant opportunities emerge in the FinTech industry through the use of different technologies such as:

• Customer-centric applications
• Digital-first collaboration
• BigData Management
• Robotic Process Automation (RPA)
• Artificial Intelligence and Machine Learning
• Blockchain
• Digital Banking

How much does FinTech Cost?

According to an Accenture’s report, cybercrime in financial services was the highest among all industries worldwide. In 2018, the investments of the FinTech industry touched the figure of around $112 billion.

During the fintech app development for your business, you must focus on features that will encourage your fintech apps’ success in 2021 and beyond. Developing a FinTech app for your business that is compliant to industry regulations requires expertise in implementing security standards. Therefore it is essential that when you embark on this journey, you work with developers experienced in the financial industry.

The cost to develop a FinTech app depends on the innovative and advanced features that you want to assimilate into your app. This cost typically ranges between $22,000 to $120,000. Fintech can include banking, wallets, blockchain, stock trading, and more. This helps to explain why there is no simple answer to how much a FinTech app costs. However, for a rough indication of an e-wallet application, a basic e-wallet app will be $25,000-$50,000 with Nimble AppGenie. Banking and Stock Trading apps will usually be more expensive.

The Fintech App Development Cost Depends On:

1. Mobile app platforms (iPhone or Android, or both) is the first and foremost factor on which cost relies.
2. Secondly, the features and functionality you want to develop and integrate into your app will also affect the FinTech development app estimate cost.
3. Hourly rates of app developers that you will hire, whether from In-house FinTech development or outsourcing FinTech software development, will also be factors.
4. These are the few factors on which the cost depends. When you hire a developer, even their location base is likely to be a core factor on which the project cost is affected.

Let’s now understand which development option is best and how much it costs to build a Fintech app.

• In-House FinTech Development

If you choose In-house Fintech software development, you would need to hire a group of IT Professionals that include frontend developers, backend developers, project managers, business analysts, and many more. This development option will require the CTOs (Chief Technical Officer) to hunt for software developers and then manage them firstly.

Advantages of In-House FinTech Development

• You can have complete control over your team.
• You can get the perks of getting work done immediately.
• It may give you a better understanding of the project.
• You can have direct access to employees.

Drawbacks of In-House FinTech Development

• FinTech app development cost is high.
• Questionable Feasibility
• The Recruitment process takes time, and it increases development time also.
• Higher risk of not having suitable skills for the project

Outsourcing FinTech Software Development

The outsourcing model is also one option for FinTech software development. There is no need to hire a group of IT Professionals; the Chief Technical Officer will look for a managed IT service provider specializing in developing and managing the technical team. FinTech companies also can outsource the entire software development and management process or outsource only part of the work. FinTech is especially useful for those companies who don’t have IT resources in-house. For these companies, it is recommended that they outsource the entire development process.

Advantages of Outsourcing FinTech Software Development

• It Saves time and Money
• Access to Global Talent
• Enable CIOs to focus on the core business activities
• Get Quality Deliverables
• Better Data Handling
• Avoid Unnecessary Recruitment time and costs

Drawbacks of Outsourcing FinTech Software Development

• Communication Barrier
• Privacy

Advanced features of FinTech development

1. Blockchain — It is a new technology in the Tech-market, but it is still rapidly being used more and more in FinTech applications. Blockchain is a set of blocks that store data or information in the form of hash functions so that the data cannot change later. This is used for security purposes due to the security benefits that blockchains provide.
2. Voice-Assisted Banking — This technology is trending very much with smart speakers like Google Home & Amazon Echo. Presently, the popularity of voice banking is growing exponentially with virtual assistants like Cortana, Google Assistant, Siri, and other types of Artificial Intelligence (AI).
3. Biometric Security — Security is one of the most crucial factors of FinTech apps. This security option is used to maintain users’ trust and confidence in using online payment services. Cyber-attacks and threats always try to destroy the user’s confidence.

All FinTech companies plan to change the pattern-based security systems and untrustworthy passwords with fingerprints or biometric inputs.

Some systems are in the developing phase, like a facial recognition system, palm-vein, and biometric systems that identify users with their heartbeat.

Henceforward, you will be able to login to banking apps by measuring your heartbeat through a smart wrist band or a Digital Watch.

With these features, you will authorize the payment just by simply scanning your palm over the reader.

1. API Integration — Application Programming Interfaces (APIs) define rules of interaction, expected results, list of commands, and interaction.

Developers can develop large application programs without re-building particular functionalities for every application with the help of APIs.

In terms of FinTech, APIs are closely used to offer partly computerized due diligence and KYC (Know Your Customer) and AML (Anti-Money Laundering) strategies.

1. Third-party Apps for Authentication — For the security of your digital accounts, two-factor authentication is likely to be the best option. SMS (Short-Message Service) verification is the most ubiquitous, but third-party apps can also be used for FinTech app protection.

Conclusion

Fintech is already transforming the Tech-Market, but many of the notable benefits, as well as interactive and attractive capabilities, are just starting to appear. The cost of developing a FinTech app depends on the type of Fintech app that you choose. Whether you decide to go for In-House or outsourcing, which platforms you choose to launch your services on, technology stack selected, and many more factors.