The financial sector for some years has gone hi-tech, opening up new opportunities for financial companies and increasingly tech-driven customers. Today, fintech app development has penetrated through mobile banking apps and across all financial transactions, whether in retail, e-commerce, insurance, healthcare, or every sector, where streamlined digital transactions have become the need of the hour. Because of the competitive app development cost in India, many fintech app ventures now hire Indian developers. India has also observed a surge in fintech apps from banking and financial institutions in recent years.
Since fintech apps are everywhere and have made their presence felt in all industry segments, the qualitative considerations have become bigger. Incorporating cutting-edge technologies has become a critical requirement to become discoverable and enjoy traction. But these innovations and the quest for a more intuitive user experience also increase the development cost. For getting an air of the cost of building a fintech app, the latest technologies, trending app features and powerful authentication and security measures remain key considerations.
Throughout this blog post, we will explain the critical cost considerations and how to control fintech app development costs. But let's first begin by explaining the reasons and contexts for financial firms to build fintech apps. Here we go.
There can be hardly any second thought about the vast potential and popularity of FinTech apps in the market. Fintech apps start from mobile wallet apps on your handheld device screen to cryptocurrencies, digital financial and investment planners, and app-based investment consultancy. There is a little bit of fintech in every transaction and financial activity in our lives.
Naturally, if you are into businesses to handle a lot of transactions or directly handle finance, insurance and investment activities of people, now is the most suitable time for fintech app development to cater to your customers' digital finance and transaction needs.
If you are still not convinced about the ever-growing and continuously empowered role of fintech apps, some latest statistics will give you a clear idea. As per Statista, a whopping 67% of executives in the banking sector believe that FinTech plays a key role in facilitating money transfers now. According to the same report, by 2022, 65% of US citizens will be using mobile banking apps. A CNBC report says that loans processed by FinTech solutions make 38% of all personal loans in the USA. According to another report on the impact of digital banking, fintech apps continue to play a key role in creating 4.6 million new user accounts by the end of last year.
So, you have just understood the role of fintech in driving business growth and financial transactions for now and in the years to come. The growth of fintech will surge to new heights and any business that fails to keep pace with this growth story is likely to slide down this growth path.
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Finally, fintech app development costs broadly vary based upon the features and functionalities you include in apps. Some features are pretty standard across all apps and involve using just coded components. These features do not increase development costs. The cost of development increases when an app project incorporates advanced features and complex user experience (UX) attributes.
Here we will explain some key fintech features that can impact the development cost to a certain extent.
For fintech apps, data and network security happen to be the most critical issues involving a major cost component. Advanced security algorithms, multi-factor authentication, and biometric user authentication are key ways to impact the fintech app development cost considerably. The latest Blockchain decentralized database ensuring fully tamper-proof data operations can also increase costs.
In the financial industry, finding anomalies and irregular transaction patterns are important for preventing security issues beforehand. This is one area where algorithms based on Artificial intelligence (AI) and machine learning (ML) can play an important role. By using AI and ML-based algorithms, fintech apps can also provide data-driven insights for investment decisions and can guide users regarding financial planning.
For engaging customers and providing them with timely financial services, notifications play an essential role in fintech apps. For mobile banking app users, notifications after every transaction keep them informed and prevent security risks of unauthorized access. In the case of investment and stock trading apps, getting timely notifications on high-return investments and stock choices is important for making the best investment decisions.
Smart voice assistants and chatbots represent another trending feature for modern fintech apps to keep customers engaged. Thanks to chatbots, customers can remain informed about the processing of documents and requirements in case of loans, make queries regarding real-time exchange or interest rates, or remain informed about the best stocks to buy. Voice assistants and voice chatbots can further allow them to interact on the go without moving their fingers a lot. These are advanced features and involve a considerable amount of development cost.
If you think you need such gorgeous and eye-candy user interfaces to facilitate the mobile transfer, you have a wrong perception of the UI/UX design benefits. Since there are tons of such fintech apps for either mobile wallets or mobile banking or mobile investment or financial planning, the competition for every fintech app category is huge and hence you need to be mentally prepared to make a quality investment in UI/UX design of the fintech app project.
Fintech apps handle tons of financial, business and personal data from different contexts and this large pool of data opens up the opportunities to derive the most important data-driven insights that financial companies can use to understand user demands and the scope of new financial products and the future investment and financial trends. This is why data analytics take up a considerable portion of the fintech app project.
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As the global IT outsourcing hub, India offers both a competitive cost advantage and a huge talent pool across all development skills. No wonder reduced app development cost in India drives businesses from all over the globe to India. The question is, irrespective of the variable factors, what is the actual cost of developing a fintech app in India? Let's dig into various estimations and credible figures from the market.
As we have already explained in detail, the cost of developing a Fintech app in India depends on the range of features and functionalities and app complexity and user experience attributes. The choice of the operating system platform and corresponding technology stack impacts the development cost.
On average, most fintech app projects involve a development cost ranging from $10,000 up to $45,000. This cost estimate covers all the key and advanced features and UI & UX elements required by a complex fintech app product. The cost of developing a fintech app in India cannot deviate much from this average estimate, although you have bigger opportunities here to make a better bargain without compromising on the skills and quality inputs.
Over the years, the fintech industry has grown to accommodate several different types of financial requirements of people and businesses. From allowing instant bank transfers to helping people pay through their mobile devices to allowing financial and investment planning to insurance claim settlement, there's a fintech app for every kind of financial need. The cost of building a fintech app will also depend upon the chosen app type and corresponding features and functionalities.
Fintech apps are increasingly shaping the growth of the entire financial industry. Even within the fintech industry, some features are already getting outdated making way for new and innovative ones. Blockchain decentralized databases, smart digital coins and cryptocurrencies have become key fintech offerings now. This constant push for innovations made fintech even more competitive than ever before.
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