Fintech app development costs – Key insights for 2025

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. These costs can be categorized into fixed costs and hidden costs:

The fixed costs

These factors are required in every fintech app, so the costs for them are unavoidable in the development process. The factors are:

1. App complexity and features

The more complex the app and the more features it has, the higher the cost. Simple apps with basic features like user login or expense tracking are cheaper. Apps with advanced features like AI, real-time processing, or blockchain will cost more.

2. Platform compatibility

If you want your app on both iOS and Android, it costs more because you’ll need separate versions or special tools to make it work on both.

3. UI/UX design complexity

A simple app design is less expensive. But if you want custom designs, animations, or interactive features, it will cost more because skilled designers are needed. 

4. Security measures

Basic security features like user authentication and data encryption are cheaper. But advanced features like multi-factor authentication or using fingerprints for login will cost more to build.

5. Development team expertise

Hiring an experienced team costs more, but they usually do better work. A less experienced team might save money but could struggle with difficult tasks.

The hidden costs

These factors may not be immediately apparent but can add to the cost over time. The factors are

App maintenance

After the app is launched, you’ll need to fix issues, add updates, and make sure it works on new devices. This adds to ongoing costs.

Meeting rules and regulation 

Fintech apps must follow rules like GDPR or PCI DSS. Ensuring your app meets these rules might require legal help and extra development, which increases the cost.

Testing 

Testing the app to make sure it works well and is safe can cost more. Special tests, like checking how it handles lots of users or looking for security issues, will add to the cost. 

Fintech app development cost estimation in 2025

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. 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 2025:

Type of app	Required time	Estimated cost
Banking app	~3200 hours	$160,000 – $500,000
Lending app	~2300 hours	$120,000 – $400,000
Insurance apps	~2800 hours	$140,000 – $350,000
Investment apps	~2500 hours	$125,000 – $300,000
Payment apps	~2400 hours	$100,000 – $400,000
Financial management apps	~2000 – 2800 hours	$100,000 – $300,000

Banking apps

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.

How to manage these costs?

• Instead of building everything from scratch, use existing APIs and pre-built modules for security and transaction features. This will save your time and money.  
• Work with experts who understand financial regulations to avoid costly rework. 
• Work with experienced fintech developers who can build compliant apps efficiently. 

Lending apps

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.

How to manage these costs? 

• Use third-party APIs for credit scoring to reduce costs. 
• Start with a Minimum Viable Product (MVP) to test the app’s core functions before investing heavily in additional features. 
• Use cloud solutions for scalability and secure data storage at a lower cost. 

Insurance apps

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.

How to manage these costs? 

• Use pre-built APIs for common insurance processes like claims and policy management. 
• Use proven encryption tools and frameworks instead of building custom security systems. 
• Outsource non-core functions like backend support to save on labor costs. 
• Use agile development to adapt to changing requirements efficiently. 

Investment apps

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.

How to manage these costs? 

• Use cloud platforms for data storage and processing instead of building expensive in-house servers. 
• Partner with market data providers to avoid the high cost of real-time data systems.  
• Build the app on a scalable system to handle large data volumes efficiently. 

Payment apps

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.

How to manage these costs? 

• Use existing gateway APIs to save time and money. 
• Begin with basic transaction features and expand as your user base grows. 
• Work with compliance experts to ensure PCI-DSS standards are met without costly mistakes. 

Financial management apps

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.

How to manage these costs? 

• Start with basic features like expense tracking and gradually introduce AI-driven insights. 
• Use open-source AI tools to save on development time and cost. 
• Focus on clean, intuitive design to save time and avoid unnecessary complexity.

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:

Development team type	Average cost
In-house	$120,000+
Outsourced	$90,000+
Hybrid	$20,000+

In-house development team

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

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

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: average $95 – $100/hour (Hight)
• 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: average $80 – $90/hour (Hight)
• 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: average $50 – $55/hour (Moderate)
• 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: average $25 – $40/hour (Low)
• 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:

Level of complexity	Price
Basic app	Starting at $50,000
Moderately complex apps	$100,000 – $300,000
Highly complex apps	$300,000+

Basic apps

Basic apps focus on essential functions and are the least expensive to build. These apps are suitable for startups or businesses testing their ideas with a minimum viable product (MVP).

Key Features: 

• User registration and login. 
• Basic data management (e.g., viewing account balances). 
• Simple payment processing (e.g., single currency payments). 
• Limited UI/UX design with standard templates.

Why it’s low-cost: 

Basic apps involve minimal backend infrastructure, limited security features, and standard designs, reducing both development time and resource requirements. 

Moderately complex apps

Moderately complex apps offer more functionality and customization, making them suitable for mid-sized businesses or those scaling their initial MVPs. These apps include integrations and enhanced security measures.

Key features: 

• Multi-currency support for global transactions. 
• Integration with other services like payment gateways or APIs for credit scoring. 
• Strong security measures like two-factor authentication. 
• Improved UI/UX design with custom animations and responsive layouts.

Why it costs more: 

Moderate complexity requires specialized expertise to build secure integrations, enhance user experience, and comply with industry regulations. Developers need more time to create and test these advanced features. 

Highly complex apps

Highly complex apps are enterprise-level solutions with advanced features and strong infrastructure. These apps target large-scale operations or businesses with advanced needs.

Key features: 

• AI-driven analytics for personalized financial insights. 
• Real-time financial data processing with minimal delay. 
• Blockchain integration for secure and transparent transactions. 
• Advanced security features like biometric login and fraud detection systems. 
• High-performance, scalable architecture to handle millions of users.

Why it’s high-cost: 

These apps require large development teams, advanced technology, and extensive testing. The time and resources needed to implement AI, blockchain, and strong security measures significantly drive up costs. 

How to optimize fintech app development costs

While building a strong and scalable fintech app is necessary, there are strategies to manage expenses effectively without compromising on quality or functionality. Here are the strategies that have been proven to lower the development cost and have been used by many fintech companies:

1. Using existing services 

Many fintech companies save money by using existing payment systems or services instead of building everything from scratch.  

For example, a fintech company that needs a strong payment system can use a white-label solution like Stripe or Braintree. These platforms already provide secure payment processing and fraud protection, and the company can focus on building the unique aspects of their app. By using these services, the company avoids the costs of building a custom payment gateway from scratch and can launch their product much faster.

2. Outsourcing development 

Fintech companies often outsource some of their development work to countries with lower labor costs (offshore or nearshore). For example, developing an app in the U.S. could cost $50 to $150/ hr, but doing the same in Asian countries like Vietnam or India might cost only $15 to $50/ hr. Developers in these regions can provide high-quality work at more affordable rates and this can save a lot of money.

Also, Forbes notes that nearshore and offshore teams enable small- and medium-sized businesses to access necessary talent without straining their budgets. This flexibility allows these businesses to scale quickly while avoiding the high costs associated with local hiring.

3. Modular architecture 

Building the app in smaller parts (modules) lets fintech companies develop and update each part separately. This makes it cheaper and easier to scale and improve the app over time.  

For example, if one part of the app needs a major update, only that specific module needs to be changed, not the entire system. This modular approach reduces costs, especially when adding new features or addressing bugs.

4. Develop an MVP 

Developing an MVP is another cost-effective strategy. An MVP allows fintech businesses to launch with just the essential features that solve the main problem for their users. This approach helps them enter the market quickly while gathering valuable feedback from users. 

For example, if a fintech company wants to build an app for personal budgeting, they can first create a simple version with basic features like expense tracking and budgeting reports. Instead of adding advanced features like investment tracking or credit score monitoring, they focus on solving the core problem. After launching the MVP, they can gather feedback, understand user needs, and improve the app with more features based on that feedback. This helps save money and time on features that might not be needed right away. 

Building a fintech app with Synodus at a reasonable price

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

You’ll benefit from cost-effective solutions without sacrificing quality. With a competitive pricing model ranging from just $16 to $30 per hour and backed by 9 years of expertise in the fintech sector, you’re guaranteed the best value for your investment. Plus, you’ll experience complete transparency, with no hidden costs along the way.

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.