The ultimate guide to cracking down the price tag of fintech apps by type

Fintech has empowered financial institutions to introduce innovative services for their customers, fueling rapid growth in this field.

If you are considering developing a fintech app for your business, you may be concerned about the expenses associated with its creation. The cost is influenced by variables such as time and the developer's rate, both of which depend on various factors.

In this article, we will analyze the cost of developing fintech apps based on their types, including banking, lending, insurance, investment, and consumer finance apps.

Banking App

Developing a banking app involves expenses for the admin panel and client-side features. The client-side features allow users to check their account balance, view transaction history, transfer money, schedule payments, send P2P payments, and locate ATMs. The admin panel manages user profiles and financial activities.

Below are some examples of popular banking apps:

• Bank of America Mobile Banking ?(US): The mobile app of Bank of America gives users access to their accounts and allows them to transfer funds, pay bills, deposit checks, and access various other banking features.
• Barclays : The London-headquarter bank operates as two divisions, Barclays UK and Barclays International. Users are allowed two separate accounts for spending and saving without monthly service charges. The Barclays banking app also integrates built-in analysis for financial management.

Next, let’s look at how long and how much it will cost to create a banking application.

We first need to estimate the total development time to calculate the final cost of building a fintech app according to its type. The hourly charge will be based on the average Southeast Asian rate of $25 - $40 per hour.

A development team will need around 3200 hours in total to build a complete banking app. So a banking app may cost you anywhere between $80,000 - $128,000.

Lending App

Through peer-to-peer lending apps, those who are willing to lend money can connect with those who need it. Such apps allow customers to borrow a small sum of money against their next payment, and you may build one while developing a DeFI app, for example.

The 3 examples of lending apps are:

• LendingClub (United States) : LendingClub is a peer-to-peer lending platform that connects borrowers and investors. It offers personal loans, business loans, and auto refinancing loans. LendingClub operates primarily in the United States.
• Zopa (United Kingdom): Zopa is a peer-to-peer lending platform based in the United Kingdom. It offers personal loans and connects borrowers with individual investors. Zopa is one of the first and largest peer-to-peer lending platforms in the UK.

It may take a development team approximately 2300 hours in total to build a complete lending app. Therefore, the cost of a lending app may range from $57,500 - $92,000.

Insurance App

Insurance apps are designed to simplify interactions with insurance providers and help clients resolve industry-related concerns. These apps come in various niche-specific categories.

• Apps for claim settlements: Manage handlers’ requirements.
• Apps for travel insurance: Provide information about the destination country – including health & security, weather, flight changes, etc.
• Apps for car insurance: Allow users to gather all required insurance information about their car accidents.
• Apps for sales management: Help workers to access sales & marketing materials quickly.
• Apps for insurance brokers: Support insurance brokers in managing insurance product life cycles and offer their customers an omnichannel experience.

Since each app in these categories has a unique set of features, the final cost will be determined by its functionality for a particular industry.

Building a complete lending app may take a development team about 2800 hours, with costs ranging from $70,000 - $112,000.

Investment App

Users of investment platforms may research and invest in different financial assets. By giving them access to pertinent analytical data, investment management solutions aid investors in improving their return on investment.

The following are good examples of investment apps:

• Stash : Stash offers both DIY and automatic investments, making it a popular app for beginners. Your purchases can be rounded up to the next dollar using Stash, and whenever those roundups reach $5, Stash will transfer the money to your investing account. It has a Stock-back feature to earn stocks as rewards when shopping.
• Robinhood : With a no-commission brokerage model, it remains the top choice for new investors; they can invest in stocks, ETFs, options, and cryptocurrencies with zero commissions. The app notifies users of changes and offers real-time market data for?cryptocurrencies, coins, or options.

Building a complete lending app may require approximately 2500 hours of development time, with costs ranging from $62,500 - $100,000.

Consumer Finance

This app type allows users to manage their funds and avoid exceeding their budget by planning their expenses.

Below are some popular apps for consumer finance management:

• Mint : With Mint, customers can easily keep track of their income and expenses and manage their money. Bank accounts, PayPal, and numerous credit cards can all be connected with this software.
• GoodBudget : This program is based on the envelope budgeting method, in which you allocate a certain percentage of your monthly income to certain areas of spending. Goodbudget offers excellent reporting tools?to display your income vs.?your expenses and how they change monthly. Easy-to-read visuals in the app help you better understand your spending patterns.

A comprehensive consumer financial app might take up to 2600 hours of development effort, with expenses ranging between $65,000 - $104,000.

Note that the time and cost for app development here are only estimates.?For a more precise number, contact your app development partner and work out the complete requirements for your project.

Aside from estimating app development costs based on the type of app, you can also base it?on the location of your tech team. Learn more about estimating the cost of developing a fintech app in this article: