Cost of Developing A Mobile Banking App

Many people voluntarily switch to mobile banking from desktop and branch-visiting banking, which is a game-changer regardless of how slow technology adoption in the finance sector is.

Many people use mobile banking apps to access their bank accounts and transact. All sizes of banks in all parts of the world are investing heavily in online banking app development and researching ways to incorporate cutting-edge technologies into their existing platforms in response to the growing demand for mobile banking.

People mostly ask about the development cost of mobile banking apps while considering it.

Developing a mobile banking app can range in cost from $30,000 to $300,000. The price may go up or down depending on the features and complexity of the app. The final cost for a banking app is influenced by factors such as the app's design, the developers' location, and hourly rate, and the cost of quality assurance.

This article will explore how the various features and components of banking app development determine the total cost of the endeavor.

A Peek Into the Mobile Banking App Market

Every major bank now offers its banking app for convenience, such as immediate access to account details, streamlined transactions, cardless ATM withdrawals, etc.

Should budding business owners give up now? No!

A banking app for mobile devices is necessary, and several numbers support this. Here are a few examples:

• Allied Market Research predicts that the mobile banking market will increase from $715.3 million in 2018 to $1,824.7 million by 2026.
• The market is expected to experience a CAGR of 12.9% from 2019 to 2026.
• 203 million people used digital banking in the United States in 2022, an increase from 196.8 million in 2021.
• Insider Intelligence reported that mobile banking apps are used by more than 97% of millennials today.

In less than a decade, mobile banking app users have surpassed online, in-person, and telephone banking users. We can only speculate about the future market size.

What are Digital Banking Solutions?

Online banking services come in three distinct varieties.

Internet Banking App

You can access these banking programs from any computer or mobile device as they run in a web browser. Customers can handle all banking operations online.

Mobile Banking Apps

Users can use their smartphones to manage their bank accounts, including checking balances, viewing transaction histories, making payments, and opening fixed deposit accounts (FDs).

Client Based Apps

Business users comprise the niche market served by client-based apps, and desktop computers are the only devices to run them. Customers download the relevant app to initiate the process, and banks grant them access to their databases and banking systems in subsequent steps.

Why Develop Mobile Banking App?

Every year, more and more people are switching to online banking. Mobile devices are ubiquitous in modern society, causing this. Intense competition in the market has greatly improved the quality of mobile apps as a bonus.

ConsumerAffairs states that 80% of US adults choose online banking over visiting a physical bank location. 82% of customers state that the convenience of their mobile banking keeps them from switching banks.

Most of the world's largest banks now dedicate their mobile apps. Retail Banker compiled data and found many options for the best mobile financial solution. They ranked Bank PKO, Chase, Capital One, Bank of America, and UBS as the best banks. Worldwide evidence and mobile user statistics support the need for a mobile banking app.

How to Determine the Cost of Developing a Mobile Banking App

Developers' hourly rates and the total time required to build the software are the primary factors driving the costs of developing a banking app.

Several variables, such as the selected platforms, the features' complexity, and the applied technology stack, can affect the time frame. Factors like expertise, years of experience, and geographic proximity cause variations in developers' hourly rates.

Select your development team and determine your app's needs, then use this tried-and-true formula to estimate how much money you will need to complete the project.

The following table outlines the time and money needed to develop apps of different levels of complexity.

Banking App Type	Estimated Cost	Time Frame
Simple app with basic features	$30,000- $70,000	3 to 6 months
Medium complex app with extensive features	$70,000-$150,000	6 to 9 months
Highly complex app with elaborate features	$150,000-$300,000	9+ months

Now that you know how to get an accurate estimate, let's discuss the factors determining the final cost of developing a banking app.

What Affects The Banking App Development Cost?

If you research how much it costs to develop a mobile app, you know several variables determine the final cost. Developing a banking app costs a comparable amount of money.

By understanding the factors that affect it, you can better estimate the total cost of developing a banking app.

Let's further break down each component.

App Platform

We recommend starting with Android due to its massive user base, even though there is little difference in total cost between developing for iOS and Android. You can easily expand the reach of your banking app by adapting it for use on other platforms once it proves successful on one platform.

Wireframe

The banking app's structure is sketched out in a wireframe, which is a rough blueprint. You can make the wireframe for an app using programs like Figma or Photoshop. In most cases, the team needs to test multiple iterations before accepting the one that best represents the final manufactured product. Wireframe layout typically costs $8,000 on average.

UI/UX Design

The UI/UX design phase begins after designing a mobile app's wireframe.

Mobile banking applications mainly include account information, transfer data, customer service information, an active chatbot, and other essential information. Creating a comprehensive outline is easy. However, a streamlined, minimalist design that is easier to navigate and maintains users would prefer their interest.

App Features

An app's overall complexity is contributed by the number and sophistication of its built-in features and design. Your app will cost more as its functionality increases. We constantly advise our clients to start with a minimum viable product and subject it to user testing. Earlier course corrections can be made in the development cycle.

Team Size

You need to hire an expert app development team for your project, which will impact the total cost of developing a banking app.

A banking industry may cost more for the services of a full-service app development company, but they will ultimately benefit from their high-quality services.

The team for developing a successful banking application would consist Project Manager, Backend Developers, iOS/Android Developers, Business Analysts, Designers, 1-2 Quality Analysts.

Outsourcing Team Location

Depending on their location, on demand app development firms will charge varying costs. Businesses in the United States will charge you a hefty premium compared to those in East Europe or Southeast Asia.

Here is the table stating the average hourly rates for outsourcing in each region:

Region	Average hourly rate
Asia	$20 – $30
Eastern Europe	$30 – $40
Africa	$20 – $40
Latin America	$40 – $60

App Maintenance

App maintenance significantly influences the cost of mobile banking app development, despite being the last item on the list. Regular app maintenance is even more important because mobile banking customers' data and actions hold great value.

You may need to update your program in addition to routinely checking for bugs.

Must-Have Features To Include In a Mobile Banking App

Users benefit from the increased accessibility and convenience provided by mobile banking apps. Mobile banking apps commonly include functions such as:

Authorization

This feature supports biometric authentication, such as FaceID and TouchID for iOS, and secure login forms like passwords and PINs.

Viewing Card Information

This function allows users to check their debit or credit card details, including the number, expiration date, and transaction history.

Current Balance And Transaction History

Viewing their account balance and transaction history in real-time allows users to get an instantaneous snapshot of their financial situation.

Initiating Secure Person-to-Person Transfers

This new feature enables the app users to send money to one another quickly and safely within the app itself.

Spending Analytics

This feature helps users gain valuable insights into their spending habits. This tool lets users easily see where their money is going, monitor their expenses over time, and create spending plans.

Notifications

The app's real-time alerts for deposits, withdrawals, and low balances enable you to monitor your finances and make educated decisions. Additionally, users can tailor their notification preferences by selecting which notifications they want to receive and how they want to receive them.

In-app Chat With Customer Support

Users can get instant assistance without leaving the app or waiting on hold with this function. The in-app chat enables users to obtain answers to questions quickly and safely without exiting the app, which is particularly crucial when dealing with sensitive financial data.

QR-Code Scanning

Users can use their smartphone to scan a QR code and instantly access information or take action.

Cashback Service

Customer reward programs reimburse a specified percentage of a customer's expenditures through cashback services.

Booking Third-Party Services

Booking third-party services within the banking app without leaving and visiting a particular website or app is a convenient feature. Improving the user experience significantly involves streamlining and making services like travel bookings, food delivery, and others more convenient.

Best Mobile Banking Apps On The Market

Ally Bank: Ally Bank doesn't have any physical location. Numerous web-based utilities are accessible through the app.

Capital One: Capital One's mobile banking app has gained a reputation for providing superior customer service. The app provides users access to a wealth of features for managing their money, such as a purchase history view, notifications, bank account and loan balance checking, etc., going above and beyond the basics.

Bank of America: The Bank of America app provides a safe and secure mobile banking solution. Cutting-edge tech builds an app that safeguards users' banking and personal information in real-time, regardless of location or device.

Conclusion

A mobile banking app allows you to make deposits, withdrawals and view account information without visiting the bank.

If you're considering making a mobile banking app, research what features you will need and how much it will cost. Contact Hyperlocal Cloud, the leading mobile app development firm, and let them add cutting-edge features to your mobile banking app.