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Factors that Impact Costs of the Fintech App Development Process

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Factors that Impact Costs of the Fintech App Development Process
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Organizations planning to develop Fintech applications should consider that the cost of development depends on numerous factors – the complexity of the application itself, its functional set, and others. The rapid growth of digital technologies and their comfort affects that most users will use predominantly digital spheres. Therefore, financial companies tend to invest in the creation of fintech applications.

The cost of creating fintech applications

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It is impossible to instantly say the price of development because it is connected with the type of business of the organization and the requirements for growth. If averaged, the cost can range from 50 to 300 thousand USD.

To accurately evaluate the creation of a Fintech application, you will have to take into account several of the following price factors that affect development:

  • application type;
  • development team;
  • location of the development team.

Let’s take a closer look at these factors below.

Cost depends on the type of application

The fintech industry has the following main types of applications for investing in companies:

  • banking;
  • investment;
  • financial and consumer;
  • credit;
  • insurance.

The final cost of development is affected by the complexity of the application, its functional set, and purpose.

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Banking applications

These applications are necessary to provide financial solutions to users through digital technologies. Users can carry out payment transactions, create bank accounts and deposits, and open credit lines. Such digital capabilities eliminate the need for users to visit bank branches directly. The cost of such an application will be in the range of 50 – 350 thousand dollars.

Investment applications

Fintech investment applications allow you to control the financial market and invest. Such financial platforms provide an opportunity to find the necessary information by evaluating the data received and developing your investment business. The creation of such applications can cost 50 – 150 thousand USD.

Financial and consumer applications

The main advantage of such applications is the regulation of own funds and their overspending. Such Fintech applications allow users to control costs and not spend more than planned. This feature ensures the effectiveness of financial control. The development of financial regulation applications is 50 – 250 thousand USD.

Credit Applications

This Fintech application allows users to borrow money for a certain period. The user’s lending data provides insight into loan applications and thus enables the regulation and control of lending, thus optimizing the borrowing process. The price of such developments is 50 – 200 thousand dollars.

Insurance applications

Insurance applications allow insurance organizations to digitize the services provided to users. Therefore, such applications offer speed and comfort.

Insurance applications are divided into several types:

All these types of insurance applications have different purposes, so the cost of their creation varies between 50-250 thousand USD.

Cost from the Fintech app development team

A vital price factor is the group of developers of fintech applications. Based on the financial capabilities of the company, there are several options for creating such an application:

  • own development team;
  • appeal to freelancers;
  • outsourcing company.

Each development option has advantages and disadvantages, so each company chooses the most suitable choice, primarily from a financial point of view and the sociability of cooperation.

Cost based on the location of the development team

The cost of creating a fintech application will be affected by the location of the developers. Remember that the services of banking software developers from developed countries (USA, Canada, EU) will be much more expensive than specialists from developing countries. Some of the most costly developers are in the United States and the UK. They have the most expensive hourly rates because the products they create are of the highest quality using innovative application development techniques.

What to consider before developing a Fintech application

Cost from the Fintech development team

Before you start investing in Fintech app development, you should consider some essential points:

  • You must follow the law. There are types of activities of organizations that regulators control. Failure to comply with the rules and regulations of regulatory bodies may result in the revocation of your company’s license.
  • Develop a marketing policy. If marketing steps are not applied, there is a risk of creating an application that consumers will not use due to the lack of advertising about the products.
  • There must be specifics in the task of the application being developed. Creating products is only advisable if it is clear what they will be used for. Products must have significant consumer demand.

Considering all these aspects, your company can create products with a vast user audience, and its demand will continuously increase.

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What is needed for successful Fintech app development?

To develop a sought-after Fintech application, follow a step-by-step approach to creating products:

  • The preparatory stage includes the collection of information data, the study of competitors, the financial capabilities of your organization, and development steps.
  • The design phase involves creating an application architecture that is understandable to software developers.
  • Development stage. Here it is necessary to decide how to store data, apply tools, and integrate functions.
  • The testing phase is necessary to detect errors and weaknesses in the created software. After testing, adjustments and debugging are carried out.
  • Launching an application for consumers.

After the application is launched, it is necessary to provide ongoing technical support during the use of the application by users.

Summing up, the cost of developing fintech applications is influenced by many factors that must be considered to create products successfully.

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Emenike Emmanuel is a multiple award-winning blogger, CEO of Entrepreneur Business Blog, Chief Evangelist of Ebusinessroom Ventures, and the Lead Coach of an online community of over 12,000 business owners called, The Excellent Entrepreneurs' Network. He’s here to help you start, manage and grow a profitable and sustainable business using digital marketing strategies. Follow him on Facebook, Twitter, Instagram, LinkedIn & Pinterest with this handle, @emenikeng. Telegram group - t.me/yourfirst1000 | Email: [email protected]

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