How Much Does it Cost to Launch a Fintech App?
Calculating the cost of developing a fintech app can be a complex task as it depends on various factors such as the app’s complexity, features, platforms, development team rates, and other associated costs. Although it would be hard to provide a solid fintech development app estimate without knowing the specifics of the product, we will give you some concrete steps for you to make such estimates. That way, you will be able to figure out the cost to develop a fintech app that corresponds to your goals and requirements.
According to the data by Statista, there will be a total of over 25,000 fintech startups in the world by the end of 2023, which means that more and more businesses are willing and ready to invest in that market. In the following article, we will discuss the major considerations you will have to make when defining the cost to develop fintech app. That way, you will be able to make an informed decision regarding your investments this year.
Fintech development app estimate: Key steps
It’s important to note that the steps below provide a general framework, and the actual cost to develop fintech app may vary depending on the specific requirements of your fintech app and the market rates at the time of development. So how much does it cost to build a fintech app? The bottom line can be around $50,000, but it can get way higher depending on your goals. For a more accurate estimate, it’s recommended to consult with a professional app development team, who can provide detailed cost breakdowns based on your specific needs.
Define project requirements
Start by defining the scope and functionality of your fintech app. Determine the features you want to include, such as user registration, authentication, account management, transactions, data analytics, security measures, and any specific integrations with payment gateways or financial institutions. The more features you want to have, the higher the cost to build a fintech app will go.
Determine the development approach
Choose the development approach, such as native (iOS and Android) or cross-platform (React Native, Flutter), based on your target audience and budget. Native apps typically cost more but provide better performance and user experience. You need to make a choice based on both your financial capabilities and the fintech market trends. Be realistic with your goals and your limitations, that way you will make the better choice.
Estimate development time
Create a timeline for each module based on its complexity and the team’s capabilities. It’s advisable to involve experienced developers or a development team to get more accurate time estimates. With a reliable team of fintech developers, you can make a much more precise estimate of the development timeline. And accordingly, you’ll get a more accurate fintech development app estimate.
Calculate development costs
Knowing the answer to “How much does it cost to launch a fintech app” requires experience in the field. To estimate the development costs, consider the following factors:
- Development team rates: Determine the hourly rates of developers, designers, and testers involved in the project. Rates vary based on location, expertise, and experience level.
- Project management and testing: Account for project management and testing efforts, typically as a percentage of the total development cost (e.g., 10-20%).
- Design and user experience: Allocate a budget for UI/UX design, as it plays a crucial role in the app’s success.
- Backend infrastructure: If your app requires server-side development or integration with third-party services, consider the cost of backend development and hosting.
- Maintenance and support: Factor in ongoing maintenance and support costs, such as bug fixes, updates, and infrastructure expenses.
Consider additional expenses
Don’t forget to include costs for app store submissions, security audits, legal and compliance considerations, marketing, and any other relevant expenses. Also, plan for the overheads. It’s estimated that two-thirds of IT projects go over the planned budget, which is a huge consideration to make. Trying to avoid overheads is great, but make sure you have some reserves to spare in case your fintech app development cost goes higher than expected.
How a dedicated team can help you optimize the project budget
As a company that builds remote units of software developers, we can say that working with a dedicated team can help you save your fintech app project budget in several ways:
- Efficiency and expertise: A dedicated team consists of professionals who specialize in different areas of app development, such as developers, designers, and testers. They have expertise and experience in building fintech apps, allowing them to work efficiently and effectively.
- Resource optimization: With a dedicated team, you have a focused group of individuals dedicated to your project. They work exclusively on your app, minimizing distractions and ensuring optimal resource allocation.
- Scalability and flexibility: Fintech app projects often require scalability and adaptability to changing requirements or market conditions. A dedicated team can easily scale up or down based on your project needs, allowing you to adjust the team size and skill sets as necessary.
- Communication and collaboration: Working with a dedicated team fosters better communication and collaboration throughout development. Close collaboration between team members and stakeholders helps ensure that everyone is on the same page regarding requirements, progress, and feedback.
- Long-term cost savings: A dedicated team can provide ongoing maintenance and support for your fintech app. They are familiar with the app’s codebase and architecture, making it easier and more cost-effective to handle bug fixes, updates, and enhancements over time.
- Quality assurance and testing: A dedicated team emphasizes quality assurance and rigorous testing throughout the app development process. They can identify and address issues early on, preventing potential issues that could lead to costly fixes or negative user experiences.
- Risk mitigation: By working with a dedicated team, you mitigate the risk of delays, project disruptions, or dependencies on individual developers. The team can handle unforeseen challenges more effectively, minimizing the impact on the project timeline and budget.
A dedicated team may initially appear more expensive compared to hiring individual freelancers. However, improved quality and reduced project risks will make it a worthwhile investment in the long run for your fintech app development project.
How much does it cost to launch a fintech app: Final thoughts
Estimating the cost of fintech app development requires a careful analysis of various factors, including project requirements, development approach, team rates, and associated expenses. By following a systematic approach, you can gain better insight into the development effort and associated costs.
However, it’s essential to remember that these estimations serve as a guide, and the actual cost may vary based on specific project needs and market conditions. Consulting with experienced professionals and leveraging their expertise can help ensure a more accurate and reliable estimation, allowing you to plan and budget for your fintech app development project effectively. Contact us and we will gladly consult you on building a remote team of fintech developers and its cost.