Almost two billion individuals use online banking services, including applications, and the worldwide mobile banking sector is projected to be worth $1.8 billion by 2026. The average consumer was using their banking app every day as early as 2018, and 2020 has speed up this trend. The increasing need for safe cashless payments has accelerated the shift from traditional banking to mobile-first services among Gen Z customers.

In order to draw in and keep clients, financial institutions need to be aware of this change in the way that people think about money. It’s crucial to keep up with market developments and discover which features increase customer retention.

If you intend to create a banking app, you must be aware of the technologies you will require, any applicable restrictions, and the extent and cost of development. In this article, we’ll discuss the cost of developing a banking app and what factors affect that cost.

A Look At The Mobile Banking App Market

Because of the convenience that banking apps offer—such as instant access to account information, simple transactions, card-free ATM withdrawals, etc.—each bank now has its own banking application, often built by specialized banking app development companies.

Several statistics supports the necessity of a mobile banking application. Here are a few well-known ones:

  • The market for mobile banking was estimated by Allied Market Research to be worth $715.3 million in 2018 and is projected to grow to $1,824.7 million by 2026.
  • In 2022, there were 203 million digital banking customers in the United States, up from 196.8 million in 2021.
  • Over 97% of millennials use mobile banking apps these days, per Insider Intelligence research.

In just ten years, the aggregate number of users for internet, branch visit, and phone banking has been surpassed by mobile banking apps. The size of the market in the upcoming years is beyond our comprehension.

Features For Developing A Mobile App

The complexity and range of features in a banking app significantly influence its development cost. As you add more features, the cost increases, particularly when those features require more labor or involve complex technological implementation.
Below, we list some of the most popular features of banking apps and estimate the development time required (in sprints). To calculate the approximate cost, multiply the total hours by the engineer’s hourly rate. Developer rates will be discussed later.
For more information on HR and payroll solutions that can support your app development process, check out Recom’s HR and Payroll Software.

Signing Up

The onboarding and registration procedure of a financial app should be simple. Users can either use the app to create an account or keep using their existing ones. They must register by supplying personal information (name, birthdate) and a bank account number (if they have one) or SSN. After that, customers must configure their app preferences and read and agree to the terms and conditions.

Authorization

User logins ought to be extremely safe. You can use facial recognition, fingerprints, or PIN sign-in. Banking apps can also incorporate other biometric authentication methods, such as voice recognition. Multi-factor authentication can be used to increase the security of the app. The most popular technique is to send a code over SMS and ask users to enter it in the app.

Payments

All of the specific transfers that your users will require must be considered while creating payment features. It makes sense to add:

  • Payment types: When customers may choose from clearly defined categories (such as utility bills, peer-to-peer money transfers, and so forth), making payments is made easier.
  • Regular payment templates: Giving clients templates and the ability to plan transactions ahead of time enhances convenience because many payments are recurring.
  • Automated emails: Having the ability to email receipts through the banking app will save users time.

History Of Transactions

If the payment was made in a different currency, the transaction history screen should provide the exchange rate, time, place, and more while being brief. Allow recipient and amount searches and transaction viewing by timeframe.

Integration Of Digital Wallets

The use of digital wallets is growing. According to a Finder survey, 110 million Americans, or roughly one-third of the population, have used digital wallets, while a recent Visa study found that 39% of SMEs accept digital payments. Consider including compatibility for other payment services, such as Samsung Pay, Apple Pay, and Google Pay.

Alerts

Users must get account-related notifications on time. In a banking app, push notifications may be related to promotions, transactions, or app changes. Additionally, users must have the option to accept or reject email notifications on their account and in-app activities.

Security Precautions

Protecting the data in the app is essential because security lapses and data leaks can cause significant harm to one’s finances and reputation. Beyond multi-factor authentication, end-to-end encryption, hashing, AI-based fraud detection, and more must be considered. Look for developers who have experience creating safe mobile banking apps and have experience working with fintechs.

What Is The Cost Of Developing A Banking App?

Developing a banking app is a complex process with many factors and challenges influencing overall development costs. Each element plays a unique role in shaping the financial landscape of the banking app development cost. Let’s examine these key factors to see how they may affect the overall cost of developing a banking app. 

The cost of developing a basic banking app with fundamental features can range from $50,000 to $150,000. However, adding advanced functionalities like AI-driven chatbots, multi-factor authentication, or blockchain integration may raise the cost to $150,000 to $300,000 or more, depending on the complexity.

Factors Affecting The Cost Of Developing A Banking App

There are a number of things that affect the general cost of developing a banking app, as we’ve already said. Knowing these things can help you figure out how much you can spend on your banking app generally and give you a clear picture of how important they are to the app’s success.

Wireframe

You can’t skip the wireframing step of making a mobile game. Usually, tools like Figma are used to make wireframes, which are basically building designs or maps of how the banking app is laid out. Usually, a sketch has to go through several rounds of testing before the one that best shows what the product will look like is chosen. A wireframe drawing can cost anywhere from $8,000 to $10,000.

UI/UX Design

Once the wireframes are done, UI/UX design comes next. This is another important step that can make or break your app. A mobile banking app usually offers account information, money transfers, customer support, an assistant, and more. Making a design that fits all the details is simple. However, a minimalistic design is essential because it simplifies navigation and engages users.

Application Platform

The general cost of the mobile banking app is affected by the platform it runs on. Even though picking between an iOS or Android device doesn’t usually have a big effect on the app’s overall budget, Android is usually better to start with because it has more users. You can have your banking app made for just one platform at first, and then switch to cross-platform app creation as the app starts to do well in the market.

Size Of The Team

The next step in your development project is to hire a specialized app development team. This can have an impact on how much it costs to make a banking app in the end. You can hire freelancers or send your app development project to a reputable company like Appic Softwares if you can’t make it happen in-house because of a lack of money or resources.

The Agency’s Location

The location of the mobile banking app development companies you choose is another thing that affects the cost of making a banking app. The cost for developing a banking app goes up as you move from east to west. In the US, app developers who work on mobile banking apps make more money per hour than app developers in Asia or Africa. Let us give you a rough idea of how much it costs to make a banking app in different parts of the world.

Updating An App

One of the most important things that affects your mobile app development spending is app maintenance, even though it comes last. It’s important to not only put the app into use but also to keep it working all the time. When you think about how important the user data and activities are in the mobile banking business, app maintenance becomes even more crucial.

Combining Technology

Technology integration is another important factor that has a direct effect on the cost to create an app. To make your banking app more future-proof, we recommend adding new technologies like AI or blockchain. However, this can have a big impact on your app budget overall.

Safety Features

Security is very important in the financial field. High-level security protections to secure personal information, account details, and transactions can make banking apps expensive. Apps can cost more with biometric identity (fingerprint or facial recognition), multi-factor authentication (MFA), end-to-end encryption, and fraud detection systems.

Third-party Integrations 

In the initial fintech MVP, limit the number of third-party integrations to essential services such as payment platforms or currency exchange APIs. This helps keep development costs under control. Some examples of these services are payment platforms, banks, currency exchange APIs, and customer relationship management (CRM) systems. The app’s cost increases since every link must be developed, evaluated, and occasionally licensed.

Final Thoughts

Now that you know how much it costs to make a banking app ($50,000 to $150,000) and the different factors that affect that cost, it’s time to buy a custom mobile banking app that will put you ahead of the curve.

According to your business needs, Appic Softwares, a specialized fintech app development company, can provide you with a clear app development plan and build a banking app that is integrated with a cutting-edge tech stack and has a large feature set. Additionally,

For more specific information on how we may assist you in putting things into perspective through carefully considered banking software development, get in touch with us!