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    Banking App Development Cost: All the Expenses You Need to Consider

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    The number of consumers making online transactions is soaring worldwide. Now that people can pay, buy, or transfer money with only one tap, the traditional brick-and-mortar model is no longer enough. Banks are now in a rush to build new mobile banking apps to stay relevant.

    We all that banking apps are prevalent now. If your bank is planning to build a mobile app from scratch, the first thing to decide is cost. 

    This article discusses all the factors that contribute to the cost of developing mobile banking app.

    1. What is a mobile banking app? 

    2. Factors determining the cost of developing a banking app?

    3. Key features of a banking app: time & costs

    4. Time and costs to developing additional features of a banking app

    5. Security costs

    What is a mobile banking app?

    A banking app is a mobile app that allows customers to access their bank account details and makes transactions directly from mobile devices, such as smartphones or a tablet.

    Depending on your customers’ needs, the number and types of mobile banking app features can vary. Deciding on all the features you will build is crucial as they will add up to the cost of your mobile banking app.

    These are some of the most basic mobile banking app features:

    • Authorization
    • Viewing card details: current balance and transaction history
    • Making secure P2P transfers
    • Scheduling payments 
    • Paying bills
    • Opening a new account/
    • Ordering a new card

    The above features are the bare minimum for a banking app MVP. Nevertheless, to keep up with the growing customer expectation and competition from fintech, banks will need more than that: 

    • QR-code scanning
    • Cashback service
    • One-click payment methods integration (Apple Pay, Google Pay)
    • Booking third-party services
    • Chatbot

    Factors determining the cost of developing a banking app?

    You can calculate the total cost of developing a banking app by multiplying the number of hours spent on development by the price of an hour of the developer’s work. Note that development cost is just a part of the total budget for the app. The other costs are related to post-release (customer support and marketing), testing, maintenance, and management.

    Your cost of developing mobile banking app depends on these 3 factors:

    • App complexity: The more features you build, the more complex your mobile banking app will be, thus the higher its cost. Typically, if you plan to build an MVP first, you will need to pay half the cost compared to a full-scale product.
    • Tech stack: The choice of programming languages, libraries, and APIs contributes to mobile app development costs. Today, most teams choose native languages for mobile banking app development - for example, Swift for iOS and Kotlin for Android.
    • The location of your outsourcing team: The nationality of your outsourcing vendor largely affects the hourly rate you have to pay. A developer in Southeast Asia such as Vietnam or India would cost $20 - $30 per hour, whereas one in the US would ask for $100 - $150.
    • Type of cooperation: The cost of utilizing an in-house team is largely different from that of outsourcing services. Outsourcing is relatively cheaper but it sometimes entails issues in terms of communication and quality.

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    Key features of a banking app: time & costs

    What follows below is the estimated cost and time associated with developing most features of a banking app. 

    Sign-in (authorization)

    Every mobile banking app starts with registration and authorization, using passwords or biometrics (such as Touch-ID or Face-ID) as security standards.

    • Approx time: 480 hours
    • Approx cost: $48,000 - $72,000

    Access to card details

    A mobile banking app should allow users to quickly access card & account details, balance, and transaction history. This feature typically offers card-related services, such as card re-issuing.

    • Approx: 240 hours
    • Approx cost: $24,000 - $36,000

    Transactions and payments

    Transferring and receiving money should be in real-time and secure. To authenticate transactions, the app can use biometric verification, OTP via SMS, PIN (Personal Identification Number), or password.

    • Approx time: 480 hours
    • Approx cost: $48000 - $72000

    Transaction history

    The mobile bank app should display users’ spending history on all connected bank accounts. The more detailed and intuitive the spending report, the happier your users will feel. 

    • Approx time: 240 hours
    • Approx cost: $24000 - $36000

    Spending analytics

    This feature is to provide users with a big picture of their day-to-day spending and help them set financial goals. You can also add more value with budget categories, customized reports, and saving goals.

    • Approx time: 240 hours
    • Approx cost: $24000 - $36000


    The feature automatically notifies users of transactions, required authorization, or special offers. 

    • Approx time: 120 hours
    • Approx cost: $12000 - $15000

    In-app chat with customer support

    In-app chat or chatbot helps customers easily raise their concerns without having to visit bank branches.

    • Approx time: 480 hours
    • Approx cost: $48000 - $72000
    Basic features Approx time (hr.) Approx cost ($)
    Sign-in 480 48000 - 72000
    Access to card details 240 24000 - 36000
    Transactions and payments 480 48000 - 72000
    Transaction history 240 24000 - 36000
    Spending analytics 240 24000 - 36000
    Notifications 120 12000 - 15000
    In-app chat & chatbot 480 48000 - 72000
    TOTAL 2280 228000 - 342000


    Time and costs to developing additional features of a banking app

    Below are the approximate time and cost associated with developing value-added features:

    QR-code scanning

    QR-code in banking app helps to ensure fast and secure payments.

    • Approx time: 120 hours
    • Approx cost: $12000 - $15000

    Cashback service

    This feature pays users back a certain amount of money they have spent. In many mobile banking apps, cashback service has numerous cashback categories and enables users to place returns on a separate account. 

    • Approx time: 240 hours
    • Approx cost: $24000 - $36000

    Payment integration

    With this feature, the mobile app is integrated with Apple Pay and Google Pay to ensure high payment conversion and maximum user-friendliness. 

    • Approx time: 480 hours
    • Approx cost: $48000 - $72000

    Booking third-party services

    By integrating access to the third-party services into the mobile banking app, you allow users to pay bills, buy tickets, book hotels, and so on without leaving the app. 

    • Approx time: 480 hours
    • Approx cost: $48000 - $72000

    ATM and office locations

    This feature makes it easier for users to search for ATMs and bank branches near them. Most commonly, the mobile banking app is integrated with Google Maps for Android or Apple Maps for iOS. 

    • Approx time: 120 hours
    • Approx cost: $12000 - $15000
    Extra feature Approx time (hr.) Approx cost ($)
    QR-code scanning 120 12000 - 15000
    Cashback service 240 24000 - 36000
    Payment integration 480 48000 - 72000
    Booking 3rd party service 480 48000 - 72000
    ATM & office locations 120 12000  - 15000
    TOTAL 1440 180000 - 210000 


    Security costs 

    Using modern technologies and methodologies to ensure the security of transactions and data stored in the app is another category of cost. These are the best practices to help you enhance banking app security: 

    • Biometrical data
    • One-time passwords to confirm user’s identity
    • Risk-based authentication
    • Password check (to avoid passwords that are too short and simple)
    • Limited session time

    The cost for developing these security features varies greatly based on the time needed for developing them and integrating them with each other development and integration, as well as the type of technology used. 

    Final word 

    KMS Solutions leverages the best practices in mobile banking app development and always accounts for your bank’s goals, visions, and existing challenges. With solid domain knowledge in the BFSI industry and an effective engagement process, we have a strong track record of building and launching mission-critical applications for several leading companies, including ACB, one of the "Big Four" banks, Axi Trading, etc.

    Contact us for a rough estimation of your desired mobile banking app!