Are you wondering what the cost of developing a banking app is? You’ve come to the right place. At a moment when you can spend, buy, or transfer money with just the click of a button, brick-and-mortar banking institutions have become a relic of the past.
The number of people who are conducting financial transactions online is skyrocketing worldwide. This widespread adoption of mobile banking provides an additional impetus for the growth of the financial technology industry. As a result, a proliferation of multifunctional banking apps has created an intensely competitive market.
Therefore, the development of banking applications is currently trendy. If you are considering creating one from scratch, the initial thing you need to do is to research what is the cost of developing a banking app.
In this article, we’ll take a look at some of the aspects that go into determining the cost of developing a mobile banking app, and we’ll also compute some indicative costs associated with developing a fintech application.
What Is A Banking App?
A mobile app that allows a consumer to see the data of their bank account and conduct transactions directly from a smartphone or a tablet computer is referred to as a banking app. The range of features that can be accessed through such an app is contingent on the particular bank that a user is accessing and the app’s capabilities.
The following are some of the most common banking app features:
- Authorization
- Knowing the current balance and transaction history of a particular credit card
- People-to-people transfers that are safe and secure
- Making payments according to a schedule
- Paying off debts
- obtaining a new credit card or opening an account
For the most part, this feature set is all that is required for a banking MVP. If your app isn’t already at the top of its market, these additional features will help you rise above your competitors:
- scanning of a QR code
- Money-back guarantee
- Integration of payment methods with a single click (Apple Pay, Google Pay)
- Third-party services can be booked.
- Splitting the cost of a bill with another person (ensures that everyone pays their fair amount when dining as a group)
What Factors Have An Impact On The Cost Of Developing A Banking App?
The cost of developing a banking app is an essential part of the entire budget for building and releasing an application. The first portion of the formula below illustrates how it’s generally calculated. To figure out how much it will cost to build a banking app, multiply the estimated number of hours by the developer’s hourly rate.
In addition to the actual production costs, the entire application budget incorporates customer care and marketing expenses and other unrelated expenses (management, testing, design, and analytics).
Four Factors Largely Determine The Price Of Creating A Mobile Banking App:
- Application complexity. The more features and the more difficult they are to implement, the more expensive the project will be. Developing an MVP will cost you half as much as developing a full-scale product.
- Banking and financial app development use a specific technology stack. Additionally, the price of software development is influenced by the tools and libraries used. Although native languages such as Swift for iOS and Kotlin for Android banking apps are frequently chosen by app developers, some apps necessitate specialized skills and programming languages that go beyond the conventional. (While Java’s increased security and cross-platform features make it popular in banking, Ruby on Rails is gaining popularity because of its high storage database).
- The development team’s location. While the typical hourly fee of US programmers is from $100-150, outsourcing development services in India costs roughly $20-30 per day.
- Type of cooperation. Hiring an in-house staff versus using freelancers is significantly more expensive. Working with freelancers entails some uncertainty about the quality of the code.
An App’s Main Features Are Its Time And Money-Saving Capabilities
Take a look at the cost and time required to develop the core functionalities of a mobile banking app (prices given for the US market):
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Signing in is required (authorization)
To begin, every app requires users to sign up and give permission to access certain features. The authorization procedure must adhere to stringent safety requirements (biometrics or password checks like Face-ID or Touch-ID).
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Information on a credit card
Card numbers, balances, the identity of the cardholder, and the payment system should all be readily available to customers. Card-related services such as re-issuing can also benefit from this capability.
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Payments and transactions
Funds transfer should be straightforward and safe for both the sender and receiver. There are various ways for users to authenticate transactions, including biometric verification, SMS with a code, or password entry.
About 480 hours are needed to complete this task
Price range: $48000 to $72000
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A record of transactions
Users should be able to see all of their recent purchases across all of their linked bank accounts. The better the user experience, the more complete the report should be.
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Analytical spending
This function is designed to help mobile banking app users assess their financial habits and set financial objectives. Budget categories, personalized reports, and saving targets are standard features.
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Notifications
The ability to alert customers to pending transactions, authorization requirements, or special promotions is a critical component of mobile banking app development.
120 hours is about how long it will take.
Price range: $12000-15000
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Chat with customer service while using an app
It’s simple to get in touch with a bank manager or a chatbot to resolve any concerns that may come up.
Time And Expense Tracking Are Two Additional Banking App Functions
Since the time and cost for constructing the most basic banking app functions have been established, let’s look at some extra features you can include:
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Scanning of a QR code
According to Statista, more than 27% of people in the United States and the United Kingdom plan to pay with a QR code by 2020. Fast and safe payments can be made by including a QR code in your banking app development.
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Money-back guarantee
Users love this option since it allows them to get back some of the money they’ve spent. Typically, mobile banking software developers create many cashback categories and enable customers to deposit their returns into separate accounts.
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Integration of many payment methods with a single click (Apple Pay, Google Pay)
Paying with a single click has become the norm, and Apple Pay and Google Pay integration can help you achieve high payment conversion and optimum user-friendliness.
480 hours is about how long it will take.
Price range: $48000 to $72000
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Third-party services can be booked
Another useful function frequently incorporated in mobile banking app development is the ability to transfer money across accounts. You can allow users to buy tickets, book rooms, and so on without leaving the app by providing access to third-party services.
480 hours is about how long it will take.
Price range: $48000 to $72000
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Dividing the cost
When you go out to dinner with friends, the “splitting bills” option makes it easier to split the amount and avoid debt repayment.
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Locations of ATMs and offices
An ATM and bank branch search tool has been added to this app. Developers of mobile apps for Android and iOS use Google Maps or Apple Maps to make this feature available.
120 hours is about how long it will take.
Price range: $12000-15000
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The cost of security
Mobile banking app developers place a great value on security. Your mobile app development roadmap should include a part devoted to the security concerns of your future banking app.
To put it another way, the app’s development necessitates a significant investment to secure the security of transactions and the data they contain. The following are some suggestions for enhancing the safety of your banking app:
- Biometric information
- To verify a user’s identity, one-time passwords are used.
- Authentication based on the potential danger
- To avoid the circumstance where a password is too short or simple, a password check should be implemented.
- A limited amount of time every session
You should keep in mind that the price of various security elements varies greatly depending on the time and technology required to design and integrate them.
Final Word
When designing mobile banking applications, Surf is dedicated to using the industry’s best practices. We always consider the objectives, aspirations, and difficulties that our customers face.
The first edition of the brand-new smart-banking application that we developed for Rosbank is one of our most recent initiatives in the sector.
Our objective was to design the initial version of the brand-new smart-banking application so that Rosbank could continue the application’s development and improvement in-house.
Since Surf has effectively created the application on Flutter (the “Rosbank Business” application is the first banking application on Flutter in Europe and the world’s second banking application written on Flutter), this paves the way for faster application development, a reasonable reduction in the cost of developing a banking app, and simpler application management in the long term by the Rosbank in-house team.
The Surf team has been successful in creating a middleware server, which has allowed the old application’s backend to be integrated with the new application, ensuring a smooth transition for users from the old application to the new one, improving the application’s design, and laying the groundwork for the Rosbank team to develop the app further in an efficient manner.
