Cost of Developing Mobile Banking Applications
The surge in technology has sparked a massive shift towards mobile banking, as more people willingly ditch desktops and traditional banking for mobile apps. Today, mobile banking apps have become the go-to way for people to manage their finances on-the-go.
Banks worldwide are jumping on the bandwagon, expanding their online offerings and investing in state-of-the-art tech to cater to this digital demand. But the big question is, how much does it cost to create a mobile banking app that stands out?
The total expense to develop a mobile banking app can fluctuate between $30,000 and $300,000. The final cost depends on the app's overall complexity and the features it boasts. Factors such as the app's design, location, and hourly rate of developers, along with quality assurance costs, also significantly impact the cost.
To help you calculate the cost of your banking app project, consider this unwavering formula:(Total Time taken to build the app × Hourly rates of developers)
Here's an estimate of the costs for different levels of app complexity:
| Banking App Type | Estimated Cost | Time Frame || --- | --- | --- || Simple app with a basic feature list | $30,000 - $70,000 | 3 - 6 months || Medium complex app with an extensive feature list | $70,000 - $150,000 | 6 - 9 months || Highly complex app with an elaborate feature list | $150,000 - $300,000 | 9+ months |
Simple app with a basic feature list
Understanding these factors can help you determine your overall banking app budget while providing valuable insights into their role in the app's success. So, let's break down each cost-determining factor.
$30,000- $70,000
Determining the Cost to Develop a Banking App
3 to 6 months
1. Development Platform and Complexity
Developing for iOS or Android may not have a significant impact on the overall budget, but the complexity of the features and the tech stack used will greatly affect the final cost.
Medium complex app with an extensive feature list
2. Team Size and Location
$70,000-$150,000
Hiring a dedicated development team is crucial to the project's success. Assembling an in-house team might not always be an option due to budget constraints, so you can opt for freelancers or outsource the project to a reputable agency. Although outsourcing might cost a bit more initially, it ensures quality results in the long run, thanks to the company's expertise. Here's a rough idea of hourly developer rates in different regions:
6 to 9 months
| Region | Estimated Hourly Rate of Development || --- | --- || Eastern Europe | $30 - $40 || Asia | $20 - $30 || Latin America | $40 - $60 || Africa | $20 - $40 |
3. App Maintenance
Highly complex app with an elaborate feature list
Regular upkeep is essential to keep your app running smoothly and avoid bugs. Since the mobile banking sector handles critical user data, security is paramount. Maintenance costs may rise if you decide to implement new technologies to maintain a competitive edge in the market.
$150,000-$300,000
4. Technology Integration
9+ months
Integrating advance tech like AI or Blockchain can greatly impact the overall budget, but it's an investment worth making to future-proof your app.
5. App Design
A minimalistic design is key to a successful app, providing smoother navigation and retaining users while keeping them engaged. Wireframing, a crucial stage in the design process, can cost around $8,000 to $10,000.
Now that you have a clear idea of how to calculate the overall cost of a banking app, let's delve deeper into the factors that ultimately determine the app's price.
Eastern Europe
Factors Affecting the Banking App Development Cost
$30 - $40
1. Wireframe
Wireframing, a stage in the mobile app design process, is vital. It involves creating a visual representation of the app's layout using tools like Figma or Photoshop. Wireframes are refined through various testing procedures to provide a clear vision of the app.
Asia
2. UI/UX Design
$20 - $30
Balancing information in a mobile banking app can be challenging. A well-designed app offering seamless navigation and user engagement is crucial to the app's success.
3. App Platform
Latin America
Developing for iOS or Android often has negligible effects on the app's comprehensive budget. You can start with a single platform and expand to cross-platform development once the app gains traction.
$40 - $60
4. Team Size
A standard team for developing an efficient banking app consists of:
Africa
- Project Manager
- 2-3 Backend Developers
- 2-3 iOS/Android Developers
- 1-2 Designers
- 1-2 Quality Analysts
$20 - $40
5. Location of the Agency
Location plays a significant role in the app's cost. As you move from east to west, costs increase. See the table below for an idea of hourly developer rates in various regions.
| Region | Estimated Hourly Rate of Development || --- | --- || Eastern Europe | $30 - $40 || Asia | $20 - $30 || Latin America | $40 - $60 || Africa | $20 - $40 |
6. App Maintenance
Keeping an app up and running is crucial. Maintenance costs can increase due to regular upgrades or implementing new technologies.
7. Technology Integration
Integrating advanced technologies such as AI or Blockchain can greatly impact the budget.
These factors combine to determine the cost of developing a banking app. If you need a specific figure for your project, consult our banking software experts. They'll help validate your idea while providing an estimated cost.
While developing your banking app idea, it's essential to keep up with the ever-growing mobile banking app market. The convenience offered by banking apps has made them a mainstream choice, with users eagerly adopting this digital change. Here are some notable statistics:
- The mobile banking market was valued at $715.3 million in 2018 and is expected to reach $1,824.7 million by 2026[1].
- The market will grow at a CAGR of 12.9% from 2019 to 2026[1].
- The number of digital banking users in the US has increased from 196.8 million in 2021 to 203 million in 2022[2].
- Over 97% of millennials use mobile banking apps[3].
- By 2030, mobile banking apps are anticipated to overtake the combined user base of internet banking, branch banking, and telephone banking[3].
By understanding the factors that influence the cost and success of mobile banking app development, you can make an informed decision when investing in a custom mobile banking app. Good luck!
References:[1] Statista - https://www.statista.com/statistics/265444/worldwide-mobile-banking-market-size/[2] Insider Intelligence - https://www.iab.com/insights/state-of-us-banking-2022/[3] Business Insider - https://www.businessinsider.com/mobile-banking-apps-global-maрket-growth-2021-5[4] SmartInsights - https://www.smartinsights.com/mobile-app-development/mobile-app-case-studies/how-much-does-it-cost-to-develop-a-mobile-banking-app/[5] Agileware Solutions - https://www.agilewaresolutions.com/app-development/mobile-app-development-cost/
- Given the growing popularity of mobile banking apps, some financial institutions are experimenting with integrating machine learning algorithms to personalize user experiences.
- Cloud services play a crucial role in mobile app development for banking applications, as they enable seamless data management, scalability, and uninterrupted services.
- The surge in technology has led to an increased demand for mobile app development expertise in the banking and insurance industry, requiring a skilled workforce experienced in machine learning and cloud services.
