No matter how slowly we call the adoption of technology in the finance sector, there is one transformational affair that can’t be overlooked - a huge percentage of people willingly switching from desktop and brick-and-mortar banking to mobile banking.
Mobile banking apps have already become one of the predominant ways by which people log on to their bank accounts and perform transactions. The enticement towards mobile banking is highly accelerated that banks, irrespective of size and geographical location. They are not just expanding their offerings into online banking app development but are searching for ways to make the new-gen tech-savvy.
But in the event of doing so, the most common question that clicks into the mind is, how much does it cost to develop a mobile banking app?
If you are thinking to develop one right from scratch, the first step is to find out the cost of creating the same. Generally, the overall expense of creating a mobile app development varies anywhere from $30,000 to $300,000. Although, the cost can fluctuate depending on the complexity and feature list of the app. The design of the app, location of the developer and hourly rate, quality assurance charges, etc. are some other elements that affect the cost of banking apps.
In this blog, we’ll be highlighting the factors that contribute to the cost of mobile banking app development. It will also cover the calculation of indicative expenses while building a banking app.
Initially, let’s figure out how to determine the cost of your banking app project.
How to Determine the Cost to develop a Banking App
The banking app development costs rely on two major elements - the hourly rate of the developers and the total time taken to build the application.
The hourly rates of hiring a developer typically depend on their experience, skillset, and location. While the time depends on factors such as the complexity of features, platforms chosen, tech stack incorporated, and so on.
Nevertheless, once you have chosen your development team and figured out the complete app development requirements, you can use this unfailing formula to get a rough idea regarding the cost of your project.
While you can calculate the mobile banking app development cost using the above formula, you can also take a look at the average cost and time it takes to develop apps of different complexity levels in the table below
Now that you have a clear understanding of how to calculate the overall banking app development costs, let us move ahead and discuss the various factors that ultimately decide the price.
Factors that affect the cost of developing a mobile banking app
As was already noted, a number of factors influence the overall cost of mobile application development for the fintech industry. Knowing these elements can help you decide your overall banking app budget. In addition, it will provide you with a precise idea of how important they are to the success of the app.
The total cost of building an application also includes post-release costs like customer support and marketing, and additional costs not related to the actual development (analytics, management, design, and testing)
Let’s discover the factors in detail.
The complexity of the app
One of the most important elements influencing the development costs is the complexity of the mobile banking app. A complicated app includes advanced capabilities like investment management, loan applications, and extensive security features. In contrast to that, a simple app with basic functionality like account balance checking, transaction history, and bill payment is less expensive. Your app's development cost will increase in direct proportion to the number of features you want to incorporate.
Costs associated with development are also influenced by the selection of programming languages, libraries, and APIs. Although native languages are frequently used by app developers - Swift for iOS applications and Kotlin for Android banking apps development. Some apps need specialized knowledge and programming languages that go beyond the conventional method.
For instance, Ruby on Rails is gaining popularity because of its high storage database, but Java is also widely used in fintech due to its better security and cross-platform capabilities.
Type of development team
Another important factor that creates a significant difference is the cost of app development. The type of collaboration between the client and the development team is defined by two hiring models - In-house team or freelancers. If an in-house team is not a feasible option for you due to any reason such as resource or budget constraints. You can either hire freelancers or outsource your software development project to a reputed company like DianApps.
You might save on your overall budget by hiring freelancers. But, in the long run, their lack of technical ability and banking app development knowledge may end up costing you much more than the total development charges. On the other hand, a full-fledged banking app development service provider may cost a little bit more upfront but will guarantee a higher return over time due to the caliber of services they provide.
Location of Development Company
The location of the mobile banking application development business you select is another factor that impacts the cost of developing a banking app. The price of developing an app rises from East to West.
When compared to app developers in Asian or African nations, the average hourly wage for mobile banking app developers in the US is higher. Let us provide you with a rough estimate of how much it costs to design banking applications in various parts of the world.
Feature-set of the app
One of the most important elements that affect the development cost is the feature set of mobile banking apps. The cost of development increases as features become more advanced and complex.
While the above graph offers you a fair understanding of the elements that consumers most want in an online banking application, let us explain each of the essential features in more detail.
Requisites of a Mobile Banking Application
The first feature that every mobile banking app should have is easy app access. The app should be easily accessible to customers, and they should be able to download it quickly. The login process should be straightforward, and the customers should be able to log in with their credentials quickly. The app should have a simple and intuitive user interface that is easy to navigate.
Customer access to their account information should be unrestricted through the mobile banking app. They ought to have access to information about their accounts, including account statements and balances. Also, they should be able to update their account information, including their contact information and personal data.
Payment and transfer
The payment and transfer feature is one of the most critical features of a mobile banking app. Customers should be able to make payments and transfer funds quickly and securely through the app. The app should support various payment methods, such as debit cards, credit cards, and online banking. It should also allow customers to transfer money to other bank accounts and pay bills online.
The transactions history feature is essential for customers to keep track of their transactions. The app should provide customers with a complete transaction history, including details of all the transactions made through the app. Customers should be able to filter their transaction history by date, amount, and other criteria.
Push notifications are an essential feature of a mobile banking app. Customers should receive notifications for all the transactions made through the app. These notifications should include details of the transaction, such as the amount transferred and the recipient's name. Push notifications also help customers stay updated on their account activity and prevent fraudulent transactions.
Bank and ATM locations
The mobile banking app should provide customers with details of the bank's locations and ATM machines. Customers should be able to locate the nearest bank branch or ATM machine through the app. This feature is especially useful when customers are traveling and need to find a nearby bank or ATM machine.
The in-app chat feature allows customers to communicate with the bank's customer support team directly through the app. Customers should be able to ask questions, provide feedback, and report issues through the in-app chat feature. This feature helps customers get quick solutions to their queries without having to visit the bank or call customer support.
Since the fintech industry is changing the future of traditional banking, so are the features. The ATM connectivity feature is a relatively new feature in mobile banking apps. This feature allows customers to withdraw cash from an ATM machine without using a debit card. Customers can generate a QR code through the app, which can be scanned at the ATM machine to withdraw cash.
Voice commands are becoming an increasingly popular feature in mobile banking apps. Customers can use voice commands to check their account balance, transfer funds, and perform other transactions through the app. This feature provides customers with a hands-free and convenient banking experience.
AI integration is a new feature that is being added to mobile banking apps. AI algorithms can analyze customer behavior and provide personalized recommendations to customers. For example, the app can analyze a customer's spending patterns and suggest ways to save money or provide customized investment advice based on their financial goals. AI integration can also help identify and prevent fraudulent transactions, improving the app's overall security.
App security is an essential feature of every mobile banking app. Customers should feel confident that their personal and financial information is secure when using the app. The app should use advanced security features such as two-factor authentication, encryption, and biometric authentication (such as fingerprint or facial recognition). Regular security audits and updates should also be performed to ensure that the app is secure against the latest threats.
Therefore, to be competitive in the market, every mobile banking app should have must-have features. Investing in developing a robust and user-friendly mobile banking app with these features can help attract more customers and provide a seamless banking experience for them.
Now that you know the banking app development costs and its necessary requisites. It is time to invest in a custom mobile app development that can rank your mobile banking.
We at DianApps, are committed to the best-in-class practices for developing mobile banking apps and always take into consideration clients’ objectives, aspirations, and existing challenges. Being a dedicated fintech app development company, we offer you a well-defined app development plan and build a banking app. Not merely that basic app but one which is integrated with the latest tech stack and an expensive feature list according to your business requirements. To name a few, we recently developed fintech mobile and web apps - Khatabook & Zaggle, having 100k+ downloads.
So if you still have a doubt regarding the cost of app development for your project, get in touch with our team of experts. They will provide you with detailed information on how we can help you put things into perspective with a well-curated banking mobile app development.