Fintech App Definition and the Development Cost
In the beginning, let’s refer to the definition of fintech. Fintech which stands for financial technologies is a new way of introducing financial services to the audience. Fintech seeks to improve and automate the delivery of fintech services to business owners, users, and consumers by helping them better manage their financial operations by utilizing software and algorithms installed on computers and smartphones.
The fintech sector was on fire even during the pandemic times, and it continues to gain pace. In 2021, the fintech market received over 137 billion euros in revenue. The sector is predicted to grow by 188 billion euros by the year 2024.
So if you’re looking to shine on the fintech market with your own app, we have you covered. Keep reading to learn more about a fintech app, its development cost, and some tips to reduce the final price.
7 Types of Fintech Apps
The industry of financial technologies evolved into a giant field with lots of trends and sub-niches. People looking to break into the financial technology market need to stick to one fintech app idea among the variety of options to choose from. The financial technologies sector encompasses a set of fintech apps that differ by their end customers, purpose, functionality embedded, and creation cost. There are at least 7 essential types of fintech apps.
Loan Applications: ensure a direct connection between a borrower and a lender and cover the entire loaning process: from application to payment without the need for a government-regulated creditor.
Digital Banking Applications: these allow clients round-the-clock access to banking services they can get in an offline branch, including making payments, taking loans, transferring funds, etc.
Insurance Applications: enhance the insurance industry by granting more accurate ways of risk assessment and giving policyholders a faster way to process claims and apply for coverage.
Investment Applications and Robo Advisers: these are digital platforms that make investment accessible to everyone by eliminating intermediaries, lowering commissions, and facilitating the process of placing trades. With AI and machine learning, such applications can suggest possible investment options or automatically invest some users’ funds.
Payment Processing Applications: make financial operations accessible to everyone. Both businesses and individual users can utilize a payment processor to transfer or receive funds.
Consumer Finance Management: centralize all your financial information in one data store. This favors better finance management and greater control over spending habits.
Tax Filing and Management: this type of fintech app uses a question-based approach to collect relevant data, and fill up your tax returns automatically.
How Much Does the Fintech App Development Cost
The cost of fintech app creation is never set. In fact, it largely depends on the type of application you’re going to create and the location of the developers. The final prices can land at $50.000 and reach a dizzying sum of $300.000. Let’s jump into more details by estimating the development cost of a few popular types of fintech apps keeping in mind an average hourly rate of $40.
For instance, investment applications will usually take $60,000 to build. A consumer and insurance fintech app will require you to invest nearly $80.000 and $100.000 correspondingly. A banking application, in its turn, will cost around $175.000.
How to Reduce the Cost of Fintech App Development
As mentioned before, one of the major contributors to the final cost of fintech app development is the location of a development team. Thus, this is also one of the greatest ways to reduce the final cost of a fintech app, regardless of the preferred application type. To save costs without sacrificing the quality of a final product, apply for the Perfsol team — a professional fintech software development company. Perfsol experts will let your financial technology business thrive by implementing advanced tech solutions for a reasonable cost!