As per Michael Zetser entrepreneur, fintech apps are one of the most famous success trends seen in the last few years. Fintech application development has reached its peak as nowadays, almost everyone who has a bank account uses digital banking services. After all, these apps are capable of providing security and reliability. Plus, they are also convenient, fast and can deliver user satisfaction.
There is a huge variety of fintech apps that exist these days and each of them can provide financial institutions with more freedom. In addition, technologies like Big Data, machine learning (ML) and artificial intelligence (AI) are transforming the fintech industry. Therefore, it is not surprising that fintech app development services are in high demand.
Any financial institution looking into fintech app development would first focus on the cost involved because they need to ensure they have the budget for it. Fintech maestro Michael Zetser says that there are different factors to be taken into consideration for calculating the cost of fintech app development. These include the type of app required, the features to be incorporated, location, development team and more.
Cost of Fintech App Development
The cost of fintech app development is often a big priority because every business wants to stay within a budget. But, it is important to bear in mind that there is no definite answer because fintech itself is quite broad. For instance, a simple banking app that comes with basic functions and user-interface could cost anywhere between $20,000 and $35,000 for a single platform.
The final cost of a fintech app can depend on a variety of factors. It can vary from one country to another and the choice of developers also plays a key role. You can choose a professional fintech app development company, or hire a team of independent contractors. Take a look at the different factors that can determine the development cost of a fintech app.
Type of apps
According to Michael Zetser, there are different types of fintech applications and their cost varies. It is understood that the cost would be in accordance with the complexity of the development process, along with the features you require and the time taken for development.
- Banking apps
The price range for the development of a banking app is between $40,000 and $70,000. The minimum price is obviously for fintech apps that come with limited functionality and have a simple UI designed for just one platform. As far as the maximum budget is concerned, it does not have a limit and can depend on the quantity as well as complexity of the features required.
- Investment apps
Since the global COVID-19 pandemic struck, investment apps have become immensely popular and the cost of developing such an app is somewhere between $60,000 and $120,000. This price is for crypto exchanges, different trading apps as well as mutual funds apps. The features that can be incorporated in these apps include support, an admin panel, dashboard, authorization and more.
- Lending apps
There has been rapid growth in the digital lending market due to which there is a high demand for loan apps. These offer users a quick, simple and convenient way to access credit. The cost of development can be between $48,000 and $84,000.
- Insurance apps
The concept of InsurTech is a broad one and includes different types of apps, such as health, car, life, travel and other insurance. The estimated cost of app development is between $45,000 and $125,000 and these apps are used in different fields.
- Personal finance apps
The personal finance management market is quite promising and this type of fintech app comes with features, such as expense tracking, credit utilization, smart balance, budgeting and more. The cost of app development can be between $60,000 and $200,000.
Types of Teams
The team composition, the proficiency of the developers and their experience also have an impact on the cost of fintech app development. Therefore, Michael Zetser highlights that it is of the utmost importance to choose the right development partner. It is best to look at independent reviews of teams and contractors and also verify their experience.
It is also a good idea to consider their response speed and ensure there is mutual understanding. While freelance developers will cost you the lowest, it does not mean you should compromise on quality because the fintech app can affect your reputation.
Location
Michael Zetser states that one of the factors that has a significant impact on the cost of fintech app development is location. The average prices can vary based on countries and regions. The cost of fintech app development is higher in countries like the United States and Canada, but lower in regions like India. Similarly, there is a significant difference in cost between Eastern and Western Europe.
Since the global fintech market has good prospects, investing in fintech apps can be quite worthwhile. You can calculate the cost of the app based on the factors mentioned above and take a decision accordingly.