Fintech App Development Cost: A Complete 2024 Analysis

You must be thinking if it’s the right time to be a part of the fintech industry. Well, the fintech industry is growing at a CAGR of 14% and is estimated to reach $608.35 billion by the end of 2029, showing us that it’s the right time to be a part of the fintech industry. 

Moreover, AI in Fintech is also growing and is estimated to reach $50 billion by the end of 2029. It’s not just the AI that’s bringing an impact in the fintech space, digital payments also play a major role in the growth of the fintech industry by occupying 25% of the total fintech market share. 

Thus, if you too want to be a part of the fintech industry and are looking for the actual cost of developing a fintech app then you are at the right place. With the help of our business analysts and developers, we have listed the estimated cost of developing a FinTech application. So, let’s dive in and check the content of this post:

Overview Of Different Types of Fintech Apps

There are several types of fintech applications that one can develop and thus we have listed all the possible fintech applications that you can have with examples:

Digital Banking

As per a study, 71% of the users prefer to manage their bank accounts through a mobile app or desktop. Moreover, banks planning to use AI can experience a 34% increase in their revenue. 

Digital banking assist users in:

• Online account creation
• 24*7 support and account management
• Easy online banking
• Strengths privacy and security for customers. 
• And more. 

Some popular examples of Digital Banks are:

• Chime: Chime is renowned for providing simple online banking together with inexpensive accounts that don’t charge monthly maintenance or overdraft fees. Nevertheless, Chime lacks physical locations, offers fewer account options than many Internet banks, and has lower rates than many of them.

• Revolut: Peer-to-peer payments, credit and debit cards, currency exchange, stock trading, cryptocurrency exchange, and bank accounts in GBP and EUR are just a few of the banking services that Revolut provides. The mobile app for Revolut allows transfers in 36 currencies straight from the app and allows spending and ATM withdrawals in 120 currencies.

Read More: How Much Does It Cost To Create An App Like Revolut In 2024?

Money Lending Apps Or BNPL Apps

There are currently 360 million BNPL users across the globe. But what exactly is BNPL or money lending apps? 

Let’s say that you want to purchase a T-shirt but it’s the end of the month and you don’t have enough budget to purchase the product, then instead of letting the T-shirt go you can use these apps to finance the product for you and once you receive your salary you can pay them back. 

Benefits Of developing a BNPL Application:

• Helps in attracting new customers
• Close more leads

Some popular examples of BNPL Apps:

• Klarna: This BNPL app sees almost 2,50,000 transactions every day. Users can lend money from the app and pay directly or even in 4 simple installments. 

• Affirm:  Offering payment plans for both in-store and online purchases, Affirm is one of the biggest buy now, pay later (BNPL) lenders in the United States. With Affirm’s loans, you can spread out your payments over three, six, or twelve months and pay for your goods over time. There is also an option to pay no interest.

Also Read: How Much Does It Cost To Create A BNPL App Like Affirm In 2024?

Insurance/Insuretech App Development

The insurance market is also growing at a CAGR of 12.7% and is estimated to reach $6560.5 Billion by 2031. Additionally, insuretech is the use of insurance technology which helps increase profit and maintain a better customer database. 

Benefits of having insuretech software:

• It helps insurance companies save operational costs. 
• Provides a more efficient way to manage and process insurance claims. 
• Allows you to quickly asses risk and fraudulent claims. 

Some popular examples of insuretech software:

• Ladder: With Ladder’s quick and easy application process, anyone may buy a life insurance policy in as little as five minutes. With Ladder’s quick and easy application process, anyone may buy a life insurance policy in as little as five minutes. 

Money Management Apps

These apps help customers manage their finances by keeping track of their expenses and also suggest ways by which they can save them. One of the top-performing money management apps YNAB had 10M total visitors in April 2024, showcasing the need for these apps. 

Popular money management apps:

• YNAB: A money management app that has 4 step process allowing users to save money. 

• Moneylion:  With the help of the robust mobile banking software MoneyLion, you can invest, save, and borrow money all in one location. It offers several worthwhile advantages, including access to some of the best financial resources available in mobile banking.

Stock Trading Apps

Apps that make it easier for you to invest in the stock market. Moreover, they allow users to manage mutual funds, involve intraday, and more. This allows you to quickly exchange stocks by sitting at home or overviewing your portfolio anytime you want. 

Popular stock trading apps:

• Robinhood: It’s a popular trading app that has clients globally and allows trading in stocks, options, and cryptocurrencies. 
• WeBull: WeBull makes use of third-party research, screeners, analytics, and customizable charting in addition to real-time streaming data. With bespoke widgets, you may completely alter your trading terminal to fit your tastes. The TurboTrader feature enables traders to quickly trade options and equity by filtering them.​

Cost And Duration Of Developing Fintech Apps

Here is an estimated cost and duration of creating a fintech solution. The actual cost may vary depending on several features such as the UI/UX of the app, the tech stack used, and more.

Factors Affecting Cost Of Fintech App Development

Several factors can affect the cost of developing a Fintech app and we have broken down all of them for you to help you understand the actual cost of development. 

Project Requirements

The initial stage of knowing the cost of developing a fintech software depends on what your requirements are. For example, if you want AI capabilities in your app then the pricing will be high, but if you want a simple fintech solution then the pricing will be a bit low. 

There are two types of approaches when starting to develop an app:

• Fintech MVP: This approach usually tends to have low features and less initial pricing. Once the MVP app is live we move ahead and add features according to the user requirements, this helps in having only the valuable and appropriate features in your app. 

• A complete solution: If you are well aware of the features that you want in your app then you should go with this approach and be market-ready. 

UI/UX Requirements

Having an interactive UI/UX is necessary to attract and retain clients. The UX should be easy and handy for users to understand and use. You should always focus on the colors, the font, and the CTAs. 

All of these play a major role in customer acquisition and help in creating a brand image. 

Location Of Development Partner

Another important issue that significantly affects the cost is the location of the company you have partnered with to develop your FinTech application. 

The price is determined by the hourly rate of the four to seven specialized teams and the duration required to develop an app in a certain nation. Generally speaking, a FinTech application development specialist in the US will price more than one in India.

Use Of Latest Technologies

If you are planning to include AI, blockchain, or data analytics in your fintech app then the cost of development will be high, as these technologies require experienced developers.

Artificial Intelligence In Fintech

AI is revolutionizing the fintech (financial technology) industry in numerous ways, enhancing efficiency, accuracy, and customer experience. Here are some key applications and trends of AI in fintech:

Applications of AI in Fintech

• Fraud Detection and Prevention
  • Machine Learning Algorithms: AI-driven systems analyze vast amounts of transaction data to identify patterns and detect anomalies that may indicate fraudulent activities.
  • Behavioral Analytics: Monitoring user behavior in real-time to spot unusual activities and prevent fraud before it occurs.
• Risk Management
  • Predictive Analytics: AI models predict potential risks by analyzing historical data, market trends, and external factors.
  • Credit Scoring: AI improves credit scoring models by considering a broader range of data, including social media behavior and online activity.
• Personalized Financial Services
  • Robo-Advisors: AI-powered robo-advisors provide personalized investment advice and portfolio management based on individual risk profiles and financial goals.
  • Chatbots and Virtual Assistants: These AI tools offer 24/7 customer service, answer queries, and provide financial advice.
• Algorithmic Trading
  • Automated Trading Systems: AI algorithms execute trades at high speeds and optimal prices by analyzing market conditions, news, and historical data.
  • Sentiment Analysis: AI analyzes social media, news articles, and other online content to gauge market sentiment and inform trading decisions.
• Regulatory Compliance
  • RegTech Solutions: AI helps financial institutions comply with regulations by automating monitoring, reporting, and data management processes.
  • Anti-Money Laundering (AML): AI systems enhance AML efforts by detecting suspicious transactions and ensuring compliance with legal requirements.
• Customer Insights and Marketing

1. • Data Analytics: AI analyzes customer data to identify trends, preferences, and behaviors, enabling more targeted marketing campaigns.
   • Customer Segmentation: AI-driven segmentation allows for personalized offers and promotions based on customer profiles.

Trends in AI and Fintech

• Increased Adoption of Blockchain and AI Integration
  • Combining blockchain’s secure, transparent ledger system with AI’s analytical power to improve transaction verification, smart contracts, and data integrity.
• Enhanced Security and Privacy
  • Using AI to bolster cybersecurity measures, detect breaches, and protect sensitive financial data.
• Expansion of AI-Powered InsurTech
  • AI is transforming the insurance sector through improved risk assessment, claims processing, and personalized insurance products.
• AI and Open Banking
  • Leveraging AI to analyze data from various financial institutions, offering customers more comprehensive and integrated financial services.
• Growth of AI in Emerging Markets

1. • AI-driven fintech solutions are expanding in emerging markets, providing financial inclusion through mobile banking, microloans, and digital payment systems.

Challenges and Considerations

• Data Privacy and Security
  • Ensuring the protection of customer data while complying with stringent data privacy regulations.
• Ethical and Bias Concerns
  • Addressing potential biases in AI algorithms that could lead to unfair treatment of certain customer groups.
• Regulatory Compliance
  • Navigating the complex and evolving regulatory landscape to ensure AI applications in fintech are compliant.
• Technology Integration

1. • Integrating AI systems with existing financial infrastructure and ensuring interoperability across different platforms.

AI’s transformative impact on fintech continues to grow, offering new opportunities for innovation and efficiency while presenting challenges that need careful management.

Blockchain In Fintech

Blockchain technology has emerged as a transformative force in the fintech industry, offering numerous advantages such as enhanced security, transparency, and efficiency. Here are some key applications and trends of blockchain in fintech:

Applications of Blockchain in Fintech

• Payments and Money Transfers
  • Cross-Border Payments: Blockchain enables faster and cheaper cross-border transactions by eliminating intermediaries and reducing processing times.
  • Cryptocurrencies: Digital currencies like Bitcoin and Ethereum facilitate decentralized transactions, offering an alternative to traditional banking systems.
• Smart Contracts
  • Automated Agreements: Smart contracts automatically execute and enforce contract terms when predefined conditions are met, reducing the need for intermediaries.
  • Efficiency and Trust: They enhance trust and efficiency in various financial transactions, including insurance claims, loans, and trade finance.
• Supply Chain Finance
  • Transparent Tracking: Blockchain provides end-to-end transparency in supply chains, improving the tracking of goods and reducing fraud.
  • Efficient Financing: It enables more efficient supply chain financing by providing real-time data on goods and transactions.
• Asset Tokenization
  • Digital Assets: Physical assets like real estate, art, and commodities can be tokenized into digital assets, making them easier to trade and invest in.
  • Fractional Ownership: Tokenization allows for fractional ownership, lowering the barrier to entry for investors.
• Identity Verification
  • Decentralized Identities: Blockchain-based identity verification systems provide secure, immutable, and verifiable identities, reducing the risk of identity theft.
  • KYC/AML Compliance: Enhances Know Your Customer (KYC) and Anti-Money Laundering (AML) processes by providing a tamper-proof record of customer identities.
• Decentralized Finance (DeFi)

1. • Financial Services: DeFi platforms offer decentralized financial services such as lending, borrowing, and trading without traditional intermediaries.
   • Innovation: Promotes financial inclusion and innovation by providing access to financial services for unbanked and underbanked populations.

Trends in Blockchain and Fintech

• Integration with AI and IoT
  • Enhanced Data Security: Combining blockchain with AI and the Internet of Things (IoT) improves data security and enables more sophisticated financial products and services.
  • Smart Contracts and Automation: AI-driven smart contracts can automate more complex transactions and processes.
• Central Bank Digital Currencies (CBDCs)
  • Government-Backed Cryptocurrencies: Many central banks are exploring CBDCs to offer a digital form of their national currencies, providing the benefits of blockchain with state oversight.
  • Monetary Policy: CBDCs can enhance monetary policy implementation and provide more efficient payment systems.
• Interoperability Solutions
  • Cross-Chain Transactions: Developing solutions that enable different blockchain networks to communicate and transact with each other, increasing the usability and scalability of blockchain systems.
  • Standardization: Efforts to standardize protocols and frameworks to facilitate interoperability among various blockchain platforms.
• Enhanced Security Protocols
  • Quantum-Resistant Algorithms: Developing new cryptographic techniques to secure blockchain networks against potential threats from quantum computing.
  • Zero-Knowledge Proofs: Implementing advanced cryptographic methods like zero-knowledge proofs to enhance privacy and security in blockchain transactions.
• Sustainable Blockchain Solutions

1. • Energy-Efficient Consensus Mechanisms: Transitioning to more energy-efficient consensus mechanisms like Proof of Stake (PoS) to reduce the environmental impact of blockchain networks.
   • Green Finance: Leveraging blockchain for tracking and verifying green finance projects, ensuring transparency and accountability in environmental initiatives.

Challenges and Considerations

• Regulatory Uncertainty
  • Navigating the complex and evolving regulatory landscape for blockchain and cryptocurrencies, which varies significantly across jurisdictions.
• Scalability Issues
  • Addressing the scalability of blockchain networks to handle a large volume of transactions without compromising speed and efficiency.
• Security Concerns
  • Ensuring the security of blockchain networks against cyber-attacks, fraud, and other vulnerabilities.
• Public Perception and Trust

1. • Building public trust and understanding of blockchain technology to drive broader adoption in the fintech sector.

Blockchain technology continues to reshape the fintech landscape by providing innovative solutions to longstanding challenges, promoting transparency, and enhancing efficiency across various financial services.

Tools And Language Used

The technology stack has a significant impact on the cost of developing a FinTech app as well. You must decide which programming language and tools to use for your FinTech application development project to get an accurate price estimate.

There are generally three types of applications, and each has a different cost and requires a certain technology stack.

Native Fintech App Development

Native apps are those developed just for one platform—iOS or Android—and are targeted at the FinTech sector. The tools needed to create native iOS apps are Apple Xcode, SWIFT, Objective C, and the iOS SDK. Native Android apps often make use of Android Studio, Java, Kotlin, and the Android SDK. For the Ethereum platform, developers choose to use the Solidity language when developing smart contracts.

Cross-Platform App Development

React, C#, and Flutter are used to construct cross-platform programs that run on several mobile platforms.

Hybrid App Development

These programs support web apps for web browsers and native apps for iOS and Android devices. Hybrid app developers use tech stacks like HTML 5 and PhoneGap.

5 Top Fintech Startups Leading The Industry

Here are five fintech startups to watch in 2024, based on their innovative approaches and market potential:

1. Revolut
   • Description: Revolut is a UK-based neobank that has grown significantly, now offering a range of financial services in over 150 countries. Known for its mobile app that integrates various financial services, it recently expanded into mobile phone plans and introduced AI features for fraud protection.
   • Key Features: Multi-currency accounts, cryptocurrency trading, global presence, and a broad array of financial services.
   • Revenue: Estimated $2 billion in 2023.
   • Employees: Approximately 7,500​
2. Stripe
   • Description: Stripe, headquartered in San Francisco, provides online payment processing for Internet businesses. It serves major companies like Amazon and Meta with APIs that streamline payment integration for websites and mobile apps.
   • Key Features: Payment processing, financial infrastructure for businesses, recent product innovations like Data Pipeline and Financial Connections.
   • Revenue: Estimated $14 billion in 2023.
   • Employees: Around 7,000​
3. Wise
   • Description: Formerly known as TransferWise, this UK-based fintech specializes in low-cost international money transfers. It has expanded to include multi-currency accounts and business accounts, along with a strong focus on regulatory compliance and carbon reduction initiatives.
   • Key Features: International money transfers, multi-currency accounts, business solutions.
   • Revenue: $1.07 billion in 2023.
   • Employees: About 5,000​
4. Chime
   • Description: Chime is a US-based fintech that focuses on fee-free banking services. It partners with regional banks to provide customer-centric financial products, aiming to offer more affordable options compared to traditional banks.
   • Key Features: Fee-free banking, overdraft protection, automated savings.
   • Revenue: $3.16 billion in 2023.
   • Employees: Approximately 1,500​

5. CoinList

• • Description: CoinList is a platform for launching new crypto projects, providing services from token sales to trading and staking. Based in San Francisco, it supports the entire lifecycle of crypto investments and aims to connect blue-chip projects with a broad audience.
  • Key Features: Token sales, trading, lending, staking, and decentralized finance services.
  • Funding: Raised $120 million in its Series A round.
  • Headquarters: San Francisco

How Appic Softwares Can Help In Fintech App Development?

Leading FinTech app development services provider Appic Softwares has extensive knowledge and experience creating reliable financial software that complies with all legal standards. Our FinTech specialists constantly put security first and are skilled at handling any security-related difficulties.

Therefore, don’t hesitate to contact our sales team for comprehensive clarity if you’re preparing to construct a FinTech app or if you have questions regarding the expense of doing so.