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FinTech Application Development

March 4, 2020
FinTech Application Development | Retrocube

Q) How Much does the Fintech App Development Cost?

A Fintech app development cost up to $35000 to $4999 and in this, there are some latest features that are also developed. FinTech App has managed to become one of the fastest-growing trends in both the banking and Fintech industries during the year of 2020. The rise of FinTech is mostly associated with a growing number of customers, who prefer using online payment methods, leading to an increase in the creation of the FinTech mobile app development. As the internet spreads further, more people are utilizing its online applications, because of the innovation present in the FinTech mobile app design. This has given FinTech many opportunities to expand its customer base. Using the best FinTech app developers in the industry, customers are expected to have whole new banking experience.

The three kinds of FinTech apps:

Payment gateway integration apps, that use bitcoin and blockchain;

Money banking apps for bill payments, money transfers, and tracking expenses;

Apps for stock trading, loans, savings, and financial matters.

Before looking into the cost of a financial app, consider some key features before developing the app

Construct a secured platform

To develop a loyal relationship with customers, FinTech app developers must highlight data security issues. Many people are worried about their personal data, and some users might become subject to hacking. Their security is a first priority in FinTech app development, which establishes data security with regulation and compliance. Among these security measures are:

A lockdown after too many failed login attempts;

Showing only the last two digits of card numbers;

An automated one-time message sent to referenced contact numbers, when the user logs in through the app.

Initiating blockchain security is slowly becoming a more mainstream endeavor in Fintech app developers. The advantages of using blockchain is that it records, validates, and administers every single transaction, so you won’t have to worry about someone tampering with transaction records, allowing accountability from FinTech mobile app development company.

Introduce artificial intelligence and allow innovation

With growing processing needs, the advent of mobile technology gives AI an opportunity in the banking and finance sector. AI is, in fact, used in FinTech apps such as:

User-friendly chatbots are a fast way to do interactions and provide better banking services to users while improving customer service;

AI solutions are effective in detecting fraudulent behavior in real time, which allows FinTech to enforce strong security in their apps;

Allows better financial planning. Using algorithms, the app is able to calculate total spending, relevant risks, and monetary inflation in minutes;

AI-integrated FinTech apps allow efficient and quick transactions that save time.

Using immersive technology as our Fintech Mobile App Development Company is there to change the customer experience

Since VR and AR have entered into the banking sector, customers now have greater visualization of banking functions, giving Fintech app design a whole new look. Immersive technologies such as AR/VR are currently the forefront of customer experiences. Some banks are now using AR to assist users in locating the nearest ATM or bank branches. Others are using VR to provide a virtual illustration of account activity and transaction records for their users.

Using blockchain services to reimagine the future

By integrating blockchain technology in financial apps, there is a reduction of risk in business operations and an improvement of user experience, which is among many of FinTech app ideas

Using the blockchain FinTech app Developers, investors can expect money transfers with greater ease. This way businesses and consumers transmit hundreds of dollars every year, all across the globe. Blockchain technology will remove remittances and minimize exposure to cryptocurrency, making way for simpler money transfers.

Reliable notification system

In every FinTech application, the notification panel is mandatory. The apps provided are able to track logins, money transfers, ATM withdrawals, and other activities. Customers will be able to track fraudulent behaviour more easily on their accounts. This in turn will set more secure FinTech app trends, for others to follow on.

An easy-to-use secure registration process

For every banking app, security is key. A user has to opt for multi-factor authentication for more secure sign-ins.

The apps provided by FinTech are also more reliable, efficient, and flexible, given how FinTech has been adapting the latest technologies such as blockchain, biometrics, and API integration among others.

This brings us to the factors on which the cost of financial app development depends on:

  1. The platform you have chosen for app development, for e.g. Android, Hybrid, etc.
  2. Technical complexity: third party integrations, utilization of hardware components, and admin panel developments.

Finally coming to the topic at hand, how much does a financial app cost? We know that in the future everyone will be investing in FinTech—it is inevitable. The cost of creating an app depends on factors involving features that you may require in your app, the type of platform you will use, developers’ costs, and so on. Currently, the cost of a financial app ranges from $20,000 to $100,000. Wealthfront will generally ask up to $500 as a start.

If you’re building a trading platform from scratch, then it might go up as high as $3 million. The company, RobinHood, started with the same amount.

If it is a card issuance or loan origination based companies, then having the ability to issue credit is important. This way you will need funds to originate loans in addition to your operating fund.

There are other data services such as ‘Know Your Customer’ (KYC) identity and watch list checks, which start around $35-40K a year, credit checks (TransUnion, Experian), $5+ and bank data aggregation like Yodlee.

Then you have to consider things like payment (Stripe) or money transfers (Dwolla), which cost about $25-30K in the starting year. There is the need of building application wiring these things up together and features like sub-account ledgering, transaction management, and workflows.

As a starter up it is most likely that the FinTech app will come for around $10,000 to $50,000. Making these apps is also very time consuming. Many people have to spend years trying to raise large sums of money, and still find themselves falling short of the required amount. Time duration in developing apps, especially FinTech ones, are a major hurdle. The amount of hours they cost to make will affect your budget at hand.

The list below shows how many hours they take to develop a FinTech app design:

  • Instant transfer requires 24 hours;
  • Fingerprint login needs 1 hour;
  • Mobile P2P send requires about 36 hours;
  • Add a new payee requires 8 hours;
  • Set spending limits takes up to 8 hours;
  • Voice banking app needs up to 40 hours to develop;
  • Chatbot in messaging is up to 60 hours, give or take;
  • The push notification needs up to 10 hours.

What we see here is that FinTech is on its way to becoming the face of banking systems. The future most certainly appears bright, given how many problems it is able to avoid, and how customers are ensured their safety. In the long run this is without a doubt a profitable endeavor, since the FinTech app features are unqiue. However, it is not necessarily easy to get either. The cost of making an app is very costly, and if you plan on making this investment, you need to know the ins and outs of the business in order to prevent a major loss of money. Many people have tried their luck and have lost millions in rare cases. Very few manage to strike gold. Having a clear sense of direction will most certainly be your strongest ally, because by being sure on where you plan on going with the FinTech app, will help make the road to success easier.