If there is any sector that has gone from 0 to 1 by implying Peter Thiel’s ideology, it’s the fintech sector. In the last 2 to 3 decades the fintech industry has seen an exponential growth. If we consider the last decade alone, the industry has gone from being a 90.5 billion USD in terms of revenue in 2017 to 197.8 billion USD in 2024 in terms of revenue and counting.
Source:
https://explodingtopics.com/blog/fintech-stats
Citing the sudden growth, fintech app development has picked up with many players entering in the market not only to take the piece of the pie but, to actually increase the size of the pie as a whole. This revolution combined with the recent happenings of CoVID19 about half a decade ago has also spiked the acceptance of the fintech apps amongst the people. It is estimated that as of 2024, 3 out of every 4 people in the world have used fintech services through apps at least once.
Fintech app development industry is evolving and it has a lot of offerings under the umbrella, if you are looking for developing a fintech app for your financial organisation. FinTech is not only limited to banking of P2P transfer services. It’s an umbrella term which encapsulated many businesses. So, let’s understand the types of fintech apps first before understanding the costs associated with it.
Types of FinTech Apps
Fintech apps can be categorized into several types based on the services they provide and the sectors they cater to. Here are some common types of fintech apps:
- Payments and Money transfer apps: These apps are revolutionizing the way individuals and businesses handle transactions. These apps enable seamless transfer of funds, providing a fast, convenient, and secure method for handling money. These apps have transformed financial transactions by eliminating the need for physical cash and providing a platform that is accessible anytime, anywhere. They are instrumental in the shift towards a cashless society, offering benefits such as speed, security, and convenience, which traditional banking methods struggle to match.
PayPal, Wise.com, Venmo, Stripe are some of the leading examples of payments and money transfer apps which are used widely.
- Lending apps: These apps play a crucial role in modern finance by connecting borrowers directly with lenders, streamlining the borrowing process, and often providing more favorable terms than traditional banks. These apps cater to various lending needs, including personal loans, payday loans, peer-to-peer lending, and microfinancing. These lending apps democratize access to credit, offering a more inclusive, efficient, and user-friendly alternative to traditional lending institutions.
LendingClub, Prosper, and Kiva are the best examples of the lending fintech apps.
- Investment and Wealth management apps: These apps have revolutionized the way individuals manage and grow their financial assets. These apps offer tools for investing in stocks, bonds, mutual funds, and other financial instruments, making investing accessible to a broader audience. These apps have transformed the investment landscape by providing easy access to financial markets and professional portfolio management. They empower individuals to take control of their financial future.
Robinhood, and Acorns are the best examples of such apps.
- Personal Finance management apps: These are the essential tools for individuals seeking to take control of their financial lives. These apps help users manage their finances, track spending, create budgets, and save money. These personal finance management apps empower users to make informed financial decisions, reduce debt, and increase savings. By providing insights and tools to track and manage money effectively, they help users achieve financial well-being and peace of mind.
Mint, YNAB, and PocketGuard are the best examples of such apps.
- Insurance apps: have transformed the insurance industry by making it more accessible, transparent, and user-friendly. These apps provide access to a wide range of insurance services, including auto, health, home, and life insurance. They often allow users to get quotes, purchase policies, and file claims directly from their mobile devices. These insurance apps enhance the customer experience by providing convenient, efficient, and transparent access to insurance services. They empower users to make informed decisions.
Lemonade and Oscar health are the best examples of the Insurance apps in the fintech app development space.
The list of types of fintech app development can go a long as the industry includes all the aspects of the finance sector. If your business falls under the above mentioned sub-sectors or in the finance sector as a whole, developing a fintech app might prove a positive change in the business. Let’s now dive in to the show stopper question:
What is the FinTech App development cost?
or
What is the cost of developing a FinTech App?
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A very broad answer to this would be, that the cost of fintech app development ranges from anywhere between 10,000 USD to 50,000 USD depending on various factors. We will now delve into the factors that affect the calculation of costs involved in fintech app development.
Type of the Fintech App:
Earlier we explored the types of fintech apps depending on the business you are involved in the finance sector. The cost of developing a fintech app depends heavily on the type of fintech app that needs to be developed. In the table below, we will see the bifurcation based on the type.
| Type of FinTech Apps | Cost of development |
|---|---|
| Payments and Money Transfer Apps | 15,000 USD to 25,000 USD |
| Lending Apps | 14,000 USD to 28,000 USD |
| Investment and Wealth Management Apps | 20,000 USD to 35,000 USD |
| Personal Finance Management Apps | 9,000 USD to 22,000 USD |
| Insurance Apps | 23,000 USD to 40,000 USD |
Features of the FinTech Apps:
The cost depends a lot on the features to be included in the App. If you are planning to develop a fintech app with basic feature list, the costs end up in the lower end of the range as compared to the costs involved with the bespoke and specific features that are exclusive. So, in order to get an exact idea, connect with a top mobile app development company will be the best option.
Location of the development company:
The location where you hire an agency can significantly impact the cost. Developers' hourly rates differ based on their geographic location. Opting for a leading custom app development company in India can result in costs approximately 60% lower than those of a comparable agency in the US, UK, or other regions.
Technology Stack:
The technology selected for building your app significantly influences the cost. Cross-platform development tools, such as MEAN and MERN, tend to be more cost-effective compared to native app technologies like Kotlin, Objective-C, and Swift.
UI/UX design:
The UI/UX of the app significantly affects the total cost calculation of fintech app development. Apps with highly intuitive and smooth UI/UX with engaging and event driven animations cost more compared to a flat and basic UI/UX. A top UI design agency can guide you with the costs associated with this.
Conclusion
Fintech industry is growing leaps and bounds in the post-covid era. It has become quite easy to secure good funding in the fintech space compared to what it was in the past decade. With many players jumping in, it’s the best time to develop your fintech app now. Consider the features you want and the costs associated with it based on the bifurcation provided above. Be the disruptor of the fintech space by availing quality fintech app development service.