How Much Does Mobile Banking App Development Costs?

What is a mobile banking app?

A mobile banking app is a software application that allows users to access and manage their bank accounts through a smartphone or tablet. These apps offer a convenient, secure, and user-friendly way to perform a variety of banking tasks without the need to visit a physical bank branch or even use a computer.

Factors Influencing Mobile Banking App Development Cost

Developing a mobile banking app involves various costs. These costs depend on several key factors. Understanding them can help you plan your budget effectively.

App Complexity

The app's complexity plays a big role in cost. Simple apps have basic features and are quicker to build. Moderate apps include more functions and take longer. Complex apps have advanced features and integrations, increasing development time.

Features and Functionality

The features you choose affect the price. Essential features include user login, account management, and viewing transaction history. These are standard in banking apps. Additional features like budgeting tools or investment options add value. However, they also increase the development cost.

Platform Choice

Choosing the right platform is important. You can develop for iOS, Android, or both. Building for one platform costs less than for two. Cross-platform development allows one app to run on both systems. This can save time and money.

Development Team Location

The location of your development team impacts cost. Developers in different regions charge varying rates. For example, hiring a team in one country may cost more than in another. Consider this when planning your budget.

Design and User Experience

Good design and user experience are crucial for banking apps. Users expect an easy-to-use and attractive interface. Investing in quality design can increase costs. But it can lead to higher user satisfaction and retention.

Compliance and Security

Banking apps must meet regulations. Ensuring compliance adds to the development cost. Security is also a top priority. Implementing strong security measures protects user data. This is essential but can be expensive.

Features to include in your banking app

1. Account Management

Real-Time Account Overview: Display current balances for checking, savings, loans, and investment accounts.
Transaction History: Provide detailed and searchable transaction records with filtering options.
Electronic Statements: Offer access to downloadable and printable account statements.
Multiple Account Linking: Allow users to link and manage accounts from other financial institutions.

2. Fund Transfers and Payments

Internal Transfers: Enable instant transfers between the user's accounts within the bank.
External Transfers: Facilitate transfers to accounts at other banks.
Bill Pay: Support scheduling and paying bills directly through the app.
Peer-to-Peer (P2P) Payments: Integrate P2P services for sending money to friends and family.
Scheduled Payments: Allow users to set up recurring payments and future-dated transactions.

3. Card Services

Card Management: Let users activate new cards, report lost/stolen cards, and order replacements.
Card Controls: Provide options to set spending limits, restrict transaction types, or freeze cards.
PIN Management: Allow secure PIN setup and changes within the app.

4. Security Features

Biometric Authentication: Support fingerprint, facial recognition, or voice ID for secure logins.
Two-Factor Authentication (2FA): Add an extra security layer for logins and sensitive actions.
Secure Messaging: Enable encrypted communication between users and customer service.
Real-Time Fraud Alerts: Notify users immediately of suspicious activities.

5. Notifications and Alerts

Customizable Push Notifications: Allow users to set preferences for balance updates, payment reminders, and security alerts.
Email and SMS Alerts: Offer alternative channels for receiving important notifications.

6. Personal Finance Management

Budgeting Tools: Help users track spending and set budgets by category.
Spending Analysis: Offer visual graphs and insights into spending habits.
Financial Goals: Allow users to set and monitor savings or debt reduction goals.

7. ATM and Branch Locator

Geo-Location Services: Use GPS to find nearby ATMs and bank branches.
Filter Options: Let users filter locations by services offered (e.g., drive-thru, 24-hour ATM).

8. Investment Services

Portfolio Overview: Provide access to investment account balances and performance.
Trading Capabilities: Allow buying and selling of stocks, bonds, or mutual funds if applicable.
Market News and Alerts: Share relevant financial news and personalized investment alerts.

9. International Banking

Currency Exchange Rates: Display up-to-date exchange rates.
International Transfers: Facilitate sending and receiving money globally.
Travel Notifications: Let users inform the bank of international travel to prevent transaction declines.

10. Digital Wallet Integration

Support for Mobile Payments: Enable compatibility with Apple Pay, Google Pay, and Samsung Pay.
In-App Payments: Users can pay merchants directly through the app using QR codes or NFC.

How much does mobile banking app development cost?

The cost of developing a banking app will vary a lot depending on things like the complexity of the features, the skills of the development team, and other factors.

To give you an idea of what it would cost, I've used an AI software cost estimator to look at the price of creating a mobile banking app. I've also included all the features above so you can see what's involved:

The estimated cost for developing a fully-featured mobile banking app is between $90,000 and $95,000. This budget includes all aspects of the project, from design and planning to development, testing, and final deployment, for both iOS and Android platforms. With a comprehensive approach, this cost estimate is set to ensure that all critical features and functionalities are covered, making the app a robust and secure financial tool for users.

Just a heads-up: These cost and time estimates are based on the assumption that the app would be built with no code tools primarily.

You can read the full estimate here.

How long does it take to develop a banking app?

The project is estimated to take 24 to 26 weeks from start to finish. This timeline includes a detailed breakdown of each phase:

Design and Analysis – 3 weeks: This phase includes understanding user needs, defining the app’s look and feel, and ensuring it meets user expectations.
Development Planning and Architecture – 1.5 weeks: Planning the architecture is essential for building a secure and scalable app.
Development – 15 weeks: This stage involves building the app’s core functionality, including account management, fund transfers, investment options, and digital wallet integration.
Quality Assurance (QA) – 3 weeks: Comprehensive testing to identify and fix any issues to ensure a smooth user experience.
Deployment and Handover – 2.5 weeks: Finally, the app is deployed, and users can access it on both iOS and Android platforms.

The mobile banking apps market now

The mobile banking app market is still growing fast all over the world. This is down to more and more people having smartphones, more people using digital banking, and people wanting to be able to do their banking in real-time.

Key Trends in the Market:

Digital Transformation of Traditional Banks: Established banks are investing heavily in their mobile platforms to compete with fintech startups.
Rise of Neobanks and Fintechs: Digital-only banks like Chime, Revolut, and N26 are gaining popularity, especially among younger demographics.
Advanced Security Measures: With growing concerns over cybersecurity, mobile banking apps are including biometric authentication (such as fingerprint and facial recognition), multi-factor authentication, and real-time fraud monitoring to protect user data.
Integration of Additional Services: Mobile banking apps are expanding beyond basic banking functionalities to include services like investment platforms, insurance products, and cryptocurrency trading to become one-stop financial hubs.
Contactless Payments and Digital Wallets: The adoption of mobile payment solutions like Apple Pay, Google Wallet, and Samsung Pay is increasing, with banks integrating these services into their apps.

Market Leaders and Notable Apps:

Bank of America Mobile Banking: Offers various features, including customizable alerts, mobile check deposits, and virtual financial assistants.
Chase Mobile: Known for its user-friendly interface and robust security features, providing services like credit monitoring and budgeting tools.
Wells Fargo Mobile: Provides comprehensive account management with features like card-free ATM access and bill payment services.
Revolut: A fintech app offering multi-currency accounts, cryptocurrency trading, and budgeting tools, popular for international transactions.
Ally Bank: An online-only bank with competitive interest rates and a mobile app that supports full-service banking, including loans and investments.

Final thoughts

When developing a mobile banking application, understanding the full cost is crucial. The price can range significantly based on feature complexity, design requirements, and platform compatibility. A feature-rich app typically costs between $90,000 and $95,000, covering everything from design to deployment.

Timeline is also a key consideration in app development. Creating a mobile banking app generally takes about 24 to 26 weeks. This timeline includes stages such as design, core development, testing, and deployment across both iOS and Android platforms.

The mobile banking market is evolving quickly due to increased smartphone use and demand for digital banking services. Key trends include heightened security measures, integration with digital wallets, and expanded service offerings. As established banks and new fintechs compete, users benefit from a broader range of features, allowing them to manage finances, investments, and payments directly from their mobile devices.