Are you stepping into a digital world to develop a banking app and looking for methods to save your investment? You have come to the right place.
Here in this blog, we will discover the ways to reduce your banking app development cost so it is going to be quite informative and interesting for you.
We all agree that people nowadays have become so much dependent on digital technology. They are becoming very comfortable using banking apps for their routine transactions.
A huge amount of the population is switching from brick-and-mortar to mobile banking.
This is the reason that banks nowadays are adopting and expanding banking app development and offering more tech-savvy features.
But, for doing so, the most common question that pops into the minds is what is the cost of developing a banking app.
So, If you are developing the banking app from scratch then know that its cost depends on the features you are going to include.
However, several other factors contribute to the cost of the app such as the design of the app, the location of the developer, the hourly rate of the developer, quality assurance charges, etc.
Let’s now find out in detail which factors affect the cost of developing a mobile banking app and then we will move towards the ways to reduce it.
Factors Affecting the Developing Cost of Mobile Banking Apps
1. Complexity of the App
Remember that one of the most important elements contributing to banking app development cost is its complexity.
A complex app has advanced features in it such as investment management, loan applications, and expanded security features.
Whereas, a simple app with basic functions like transaction history, account balance check, and bill payment may be less expensive.
This means that banking app development cost is largely dependent on the features of your app.
Technology integration is also the biggest factor affecting banking app development costs.
By technology integration, we mean a selection of programming languages, libraries, and APIs.
App developers mostly use native languages like Swift for iOS apps and Kotlin for Android banking app development.
However, some apps require particular programming languages and specialized knowledge.
3. Type of Development Team
Banking app development cost also varies depending on the type of development team.
There are two hiring models- in-house team and freelancers that define the association between a client and the development team.
If you are not comfortable with the in-house team due to any reasons such as resources or budget.
We recommend you choose an experienced and professional banking app development company to get higher returns over time.
4. Location of a Development Company
The location of the company you choose for your banking app development company is also one of the factors that might affect banking app development cost.
The hourly rate of mobile banking app development in the US is higher as compared to Asian or African companies.
5. Feature Set of the App
One more important factor that affects your banking app development cost is the feature set of the mobile banking app.
Know that as the feature of your app becomes more complex, the cost of your mobile banking app increases.
Whereas, there are some additional factors as well that affect the banking app development cost so let’s have a look at them.
1. Regulatory Assistance
Banking apps use the personal data of users so there are some regulations and requirements.
2. App Release
Remember that Google Play Store and App Store charge one-time or annual commissions and fees for in-app purchases.
This cost is not as important as compared to other banking app development costs but they’re also worth considering.
3. Data Storage and Integrations
You also have to pay for data warehousing and fees for third-party interactions such as financial APIs (Application programming interface) or payment gateways.
4. Support Services
When the app is released, you need to invest in updates, adding new features, and fixing possible bugs.
Usually, the cost of maintenance services may lie between 15-20% of the app development cost.
5. Marketing Cost
When you develop an app, you need to invest in promoting your app. Plan your marketing strategy to attract users.
The cost of advertising your banking app depends on your marketing strategy and activity.
Okay so now we have seen which factors contribute to the banking app development cost.
Let’s move forward with the most asked question which is How to save your banking app development cost?
Methods to Save Your Investment
1. Carefully Plan and Finalize your Requirements
If you are going to develop a banking app then you must first plan and finalize your results.
You must have a clear vision of your end product in mind but during the development process, the idea of the end product might change which may result in increased time and developmental costs.
We would suggest you plan your product requirements documents or PRD which is important to keep everyone on the same page and set your expectations + budget.
A PRD is crucial no matter if you are outsourcing the developers or creating your product in-house.
2. Create MVP (Minimum Viable Product)
Creating an MVP of your app is also one of the best ways to keep your banking app development cost low.
MVP is a working prototype of your app that has all the core features of the app in place to check the validity and test the idea.
The main reason for creating MVP is to provide the users with maximum values with some important functionalities.
Then get more users and data and invest more in making a more polished product. It will in turn result in the cut down of the development time and efforts hence making cost-effective MVP causing higher ROI on the app with every new version release.
3. Maintain UI/UX Simplicity
One of the ways to reduce banking app development costs is simply to opt for a simple yet classic design.
A simple UI design is crucial for new users as it makes adaptation easier.
The majority of the app developers prefer to go for minimalist design which is cheap to design.
Remember that complex features will not just confuse the users but also include an unnecessary cost to the project.
4. Prioritize Core Features
You must not sacrifice the quality of your app to save the cost however what you can do is to prioritize the core features only.
Such features can include balance inquiries, transactional capabilities, or money transfers.
By implementing only these important features you can effectively reduce the banking app development cost.
You need to manage all the variables consciously or else you will end up increasing the banking app development cost.
4. Hire a Experienced Development Team
When hiring developers, remember that they play an important role in determining long-term cost-effectiveness.
An experienced team minimizes the banking app development cost at all levels.
You can take benefit of their expertise, access cost-effective solutions, and ultimately ensure that your banking application development keeps within the budget without compromising security and quality.
5. Choose an Experienced Software Vendor
Another important way to reduce your banking app development cost is to choose a reliable software provider.
An experienced software vendor can help you with their expertise, you can access cost-effective solutions, and make sure that your banking app development cost stays within budget.
You may also outsource the app developer as many of the businesses do this to lower the mobile app development cost.
Now we can conclude that several factors affect the banking app development cost.
These factors play a vital role for organizations to understand the budget of developing the banking app.
Remember that each of the factors discussed above has a significant effect on the overall banking app development cost so you need to pay attention to each one of them and plan accordingly.
How Much Does Development Cost For a Banking App?
The cost of developing a banking app varies as it depends on a variety of factors including the complexity of the app, the platform it will be created for, and features that are included. On average, a simple banking app can cost around $50,000 to $100,000 although a more complex above $500,000 or more. But keep in mind that this is only a rough estimate and the actual cost depends on your specific requirements.
Can Creating an MVP For a Mobile Banking App Reduce The Total Cost?
Yes, creating an MVP for a mobile banking app might reduce your overall cost. Once you develop the MVP, you need to put it out and receive feedback. After the MVP has established the market momentum, you can progress to a fully developed mobile application.
What Makes a Good Mobile Banking App?
A good mobile banking app can perform every function and to create such an app you need to integrate several features such as:
- User profile
- ATM/ branch locator
- Account management
- 24/7 support
- Money Transfer
- Push notifications
- Bill payments
- QR code scanner
- Biometric security
- Cardless transaction for cash withdrawal
- AI-powered chatbots
- Voice Banking facility
- Digital-only banks and blockchain
Why Do Banks Invest In Mobile Banking Apps?
Banks invest in mobile banking apps to provide a convenient and secure way for customers to access their accounts and perform transactions. Mobile banking apps allow customers to check their account balances, pay bills, transfer money, and deposit checks. They also send notifications of account activity, and alerts for suspicious transactions, and offer budgeting tools. Moreover, banking apps help banks increase customer engagement and loyalty and reduce costs compared to physical branches and paper-based transactions.
What Are Some UI/UX Trends in Mobile Banking App Design?
Some UI/UX trends in mobile banking app design are as follows
- Minimalist Design: Clean and clutter-free interfaces for a user-friendly experience.
- Biometric Authentication: Integration of fingerprint and facial recognition for secure and convenient login.
- Personalization: Tailoring the app to individual user preferences and behavior.
- Dark Mode: Offering a dark mode option for improved visibility and battery conservation.
- Real-Time Notifications: Providing instant alerts for transactions and account updates.