Fintech app development cost – what fintech startups need to know 

However, the construction of the application itself is not a piece of cake. Some of the specific concerns are all-embracing complex rules that govern the use of AI, the determination of the right technology to adopt, and the cost of developing those applications. These costs can vary widely based on factors like app functionality.  

Do not fret – we’ve got you covered: all the details are here. In this article, we will underscore the various factors that constitute cost, as well as provide guidelines to enhance cost control.

Factors that influence fintech app development costs

The cost of developing a fintech app can range from as low as $30,000 to over $300,000 or more, depending on various factors. Below are the key elements that significantly impact the cost:

1. App complexity and features

The development cost rises with the app’s complexity and the number of features. Simple apps with basic functions, like user login and expense tracking, are more affordable. In contrast, advanced features such as AI-driven analytics, real-time processing, or blockchain integration significantly increase costs.

2. Platform compatibility

The platform you choose—iOS, Android, or both—will also impact development costs. Multi-platform development requires either separate versions or the use of cross-platform tools, which adds to the expense.

3. UI/UX design complexity

The app’s design plays a crucial role in determining cost. A straightforward design with standard UI elements keeps costs down. In contrast, a custom, highly interactive design with complex animations increases the budget, mainly if a highly skilled design team is involved.

4. Security measure

Basic security features like user authentication and encryption are relatively low-cost, but implementing advanced security measures such as multi-factor authentication and biometric logins will drive up development costs.

5. Development team expertise

The expertise of your development team is a significant cost factor. While less experienced teams may be cheaper, they could struggle with the complexities of fintech development. In contrast, experienced teams, though more expensive, are likely to deliver a higher quality and more secure app.

Fintech app development cost estimation in 2024

Now that we’ve covered the main factors affecting fintech app development costs let’s dive into the details of how much it costs to build a fintech app. In 2024, every choice you make—from the type of app to the team you hire—can have a significant impact on your budget. 

In this section, we’ll break down the specific costs at each stage, focusing on how factors like app type, team structure, location, and complexity influence your overall spending.

1. Cost breakdown by app type

The type of fintech app you plan to develop is one of the most crucial factors in determining the overall cost. Different types of apps require varying amounts of time, resources, and expertise. Here’s a detailed look at the estimated time and cost for different types of fintech apps in 2024:

Banking apps

• Required time: ~3200 hours 
• Estimated cost: $160,000 
• Required time: ~3200 hours 
• Estimated cost: $160,000 to $500,000 
• Details: Banking apps are complex, requiring robust security features, real-time transaction processing, and integration with various financial systems. Building a banking app involves significant regulatory compliance, which can add to the development time and cost. 

For instance, at Synodus, we developed a digital banking solution for a European bank that streamlined customer service operations, reducing manual processes by 35% and boosting customer retention by 20%. 

Lending apps

• Required time: ~2300 hours 
• Estimated cost: $120,000 
• Required time: ~2300 hours 
• Estimated cost: $120,000 to $400,000 
• Details: Lending apps typically focus on loan management, credit scoring, and peer-to-peer lending functionalities. These apps require sophisticated algorithms for credit risk assessment and secure data handling.  

In one of our projects, Synodus developed a P2P lending platform that allowed users to access loans faster while maintaining high levels of security, significantly improving user satisfaction.

Insurance apps

• Required time: ~2800 hours 
• Estimated cost: $140,000 
• Required time: ~2800 hours 
• Estimated cost: $140,000 to $350,000 
• Details: Insurance apps often need features such as claims processing, policy management, and premium calculations. These apps must be reliable and user-friendly, with a strong emphasis on data security.  

For a client, Synodus built an insurance app that automated claim approvals, reducing processing time by 25% and improving customer engagement.

Investment apps: 

• Required time: ~2500 hours 
• Estimated cost: $125,000 
• Required time: ~2500 hours 
• Estimated cost: $125,000 to $300,000 
• Details: Investment apps require real-time data analytics, portfolio management tools, and integration with trading platforms. These apps must handle large volumes of data while providing accurate and timely information to users.  

For instance, Synodus developed a cryptocurrency exchange white-label solution that enabled secure and fast transactions, improving user retention by 30%.

Payment apps

• Required time: ~2400 hours 
• Estimated cost: $100,000 to $400,000 
• Details: Payment apps are central to the fintech ecosystem, enabling transactions, money transfers, and digital wallet functionalities. They require seamless integration with various payment gateways and must comply with PCI-DSS standards. The development of payment apps involves rigorous testing to ensure reliability and security.

Financial management apps

• Required time: ~2000 to 2800 hours 
• Estimated cost: $100,000 to $300,000 
• Details: These apps focus on budgeting, expense tracking, and financial planning. They need to be intuitive and capable of providing personalized insights to users. The development process typically involves integrating AI to offer automated financial advice, which can increase both the development time and cost.

2. Cost breakdown by development team type 

The composition of your development team can significantly affect the cost of building a fintech app. Here’s a breakdown of the costs associated with different team structures:

In-house development team

• Average cost: $120,000+ 
• Details: Hiring an in-house team offers more control over the project but comes with higher costs, including salaries, benefits, and infrastructure. This option is ideal for startups looking for long-term development and continuous support.

Outsourced development team

• Average cost: $90,000+ 
• Details: Outsourcing can be a cost-effective solution, especially when working with teams from regions with lower labor costs. However, clear communication and project management are required to ensure the quality and timely delivery of the project.

Hybrid teams

• Average cost: $20,000+ 
• Details: A hybrid approach, where part of the team is in-house and the rest is outsourced, can balance cost and control. This model allows startups to leverage specialized skills without the overhead of a full in-house team.

3. Cost breakdown by location

The geographical location of your development team is another crucial factor influencing cost:

North America

• Cost: High (average $95 – $100/hour) 
• Details: Teams in North America offer high-quality services but at a premium cost. This option is often chosen for projects requiring close collaboration and high standards.

Western Europe

• Cost: High (average $80 – $90/hour) 
• Details: Similar to North America, Western European teams provide excellent service quality with slightly lower costs. This region is known for its expertise in fintech solutions.

Eastern Europe

• Cost: Moderate (average $50 – $55/hour) 
• Details: Eastern Europe offers a balance between cost and quality, making it a popular choice for fintech startups looking to optimize expenses without compromising on expertise.

Asia (India, Vietnam, Philippines)

• Cost: Low (average $25 – $40/hour) 
• Details: Asia is the most cost-effective region for fintech app development. Teams here are well-versed in cutting-edge technologies and can deliver high-quality apps at a fraction of the cost.

4. Cost breakdown by level of complexity

The complexity of the fintech app significantly impacts development costs:

Basic apps

• Price: Starting at $50,000
• Details: Basic apps with limited features are the least expensive to develop. These apps typically include essential functionalities like user registration, basic data management, and simple payment processing.

Moderately complex apps

• Price: $100,000 – $300,000
• Details: These apps include more advanced features like multi-currency support, integration with third-party services, and enhanced security measures. The development of moderately complex apps requires more time and specialized expertise, resulting in higher costs.

Highly complex apps

• Price: $300,000+
• Details: Highly complex apps are at the top end of the cost spectrum. They include features like AI-driven analytics, real-time financial data processing, blockchain integration, and advanced security protocols. Developing such apps requires a significant investment in both time and resources.

How to optimize fintech app development costs

Optimizing development costs is critical for fintech startups, especially in a competitive and rapidly evolving industry. While building a robust and scalable fintech app is necessary, there are strategies to manage expenses effectively without compromising on quality or functionality. 

One of the most notable examples is Stripe, a global payments platform. Stripe faced the challenge of creating a highly scalable and secure system that could handle massive transaction volumes. Instead of building everything from scratch, Stripe leveraged existing payment infrastructure and APIs, significantly reducing initial development costs. This allowed the company to focus its resources on building a modular architecture, where the platform was divided into smaller, independently deployable components. This streamlined the development process and facilitated incremental testing and deployment, which further cut costs.

For fintech startups looking to optimize their development costs, the following strategies are recommended:

Adopt a modular architecture

Breaking down the app into smaller modules allows for incremental development and deployment. This approach not only reduces costs but also enhances flexibility and scalability, as individual modules can be updated or scaled independently based on demand.

Leverage existing infrastructure

Whenever possible, use existing APIs, libraries, and third-party services. This can significantly reduce the time and resources needed to develop complex features from scratch.

Prioritize scalability from the start

Designing your app with scalability in mind can prevent costly overhauls later. By anticipating user growth and increased transaction volumes, you can build a system that scales efficiently as your business expands.

Implement continuous testing

Regular testing of individual modules ensures that issues are identified and resolved early, preventing costly fixes later in the development cycle.

Building your fintech app with Synodus

Choosing Synodus as your fintech app development partner brings significant advantages to startups, particularly in terms of cost-effectiveness, a clear roadmap, and strategic consulting.

Competitive pricing

Synodus understands the needs of startups and offers competitive pricing that combines affordability with high-quality fintech development. Our transparent pricing, from $16 to $30 per hour, ensures you receive excellent value, with most projects completed in just 3 to 4 months.

Clear development roadmap

From initial consultation to final delivery, Synodus provides a well-defined roadmap that guides you through every stage of the project. Our process includes four key phases: Consultation, Development, Maintenance, and Achieving Results. This structured approach ensures that your app is developed on time and within budget, with clear milestones along the way.

Strategic consulting

Beyond technical expertise, Synodus excels in strategic consulting. Our team of fintech experts brings deep industry knowledge and real-world experience to the table, offering insights that go beyond mere development. We help you navigate the complexities of the fintech market, ensuring that your app not only functions perfectly but also aligns with your broader business goals.

Conclusion

Developing a fintech app is a complex, long-term investment that requires careful planning and attention to detail. The costs involved are influenced by a wide range of factors, and understanding these is essential for making informed decisions. 

Optimizing development costs isn’t about cutting corners—it’s about making strategic choices. By adopting a modular architecture, leveraging existing infrastructure, and focusing on scalability, you can create a robust, scalable fintech app that excels in the market. With the right approach and a reliable partner like Synodus, your fintech startup is poised for success. 

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*Note: All the data is based on reports and studies by Statista, Clutch, Goodfirms, Deloitte, and other trustworthy market research companies.