Banking App Development: Why, How to Make, Cost of Development
Banking App Development
Thanks to the development of digital technologies, conducting various financial transactions remotely without visiting a bank branch has become possible. That’s why banking apps have become so popular – more than 90% of users use them to check their bank account, and about 80% check financial transfers.
Table of Contents
What do you need to develop a banking application?
Find out the viability of products
Initially, you should determine the development’s purpose and ensure your project’s viability. Specific actions must be taken to test the viability of a future banking application. Explore the banking market to find out how your application can optimise financial processes and attract a large user audience. Next, you should check the competitors – check how their banking application functions:
- User interface;
- Ensuring safety and reliability;
- Ease of use.
Thanks to competitors, you can find errors in their development and create your unique application. No project is without financial costs, so the estimated costs of the following main points should be considered:
- Development of a banking application;
- Creation of MVP;
- Inclusion of additional functions;
- Project support and maintenance.
In addition, you should understand what target audience this application will be intended for. Such research is necessary to create unclaimed products.
Development of a banking application
At this stage, deciding on functionalities that meet users’ needs is necessary. Consider the basic minimum functionality required for banking software development. Registration is required to create a user account. For increased security of logging in, provide multi-level identification: password, biometrics, and fingerprints. To manage your account, you will need the following features:
- Account verification;
- Overview of bank cards;
- Verification of performed operations;
- Obtaining bank statements.
In addition, you can enable additional features, such as the regulation of systematic payments. A section with located ATMs and bank branches will also be helpful information.
Making secure transfers is an essential point for a banking application. Consider scanning a QR code and personal identification when making financial transactions.
Pop-up notifications – your users must have up-to-date information and know what is happening with the account.
Provide a round-the-clock support service for prompt resolution of various issues. Often, based on user information, optimising the work of the created application is possible.
Offline access – This function is necessary if the client does not have the Internet or a weak network signal.
It is standard functionality, but to attract a larger user audience, you can enable ready-made additional features:
- Special offers: promotions, bonuses, cashback, etc.;
- Create a version of the application for wearable devices;
- Provide trackers that allow users to control their expenses (color charts can be used for clarity), as well as apply payment reminders (or set scheduled payments);
- Split accounts – Some users need to distribute their funds across multiple accounts;
- Access to an ATM without a bank card – a valuable feature for forgetful users.
The listed functionality should be applied to your banking application. It will make it expensive, but a large user audience is guaranteed.
What group of professionals will be required to develop?
For a successful banking application, forming a team of professionals is necessary. These can be full-time employees or attracted from the outside. Much will depend on financial capabilities. To create a complete application, you will need the following specialists:
- Project Manager;
- Financial analyst;
It is a standard set of specialists, but you can hire a DevOps specialist to make the team work more smoothly and efficiently.
Tech stack to build an app
Regardless of the developers’ qualifications, you will need tools to create software. Using the latest tools to develop a high-quality banking application is recommended.
We list the main tools for documentation: documents, sheets, slides, calendars, instant messengers, and email. To present the application to consumers, a professional hosting solution is required.
Since the banking application will be designed for mobile devices, you should apply the best software in development.
It is essential to conduct testing, ensuring the developed product functions correctly. When developing large projects, automated testing is used to reduce the time and complexity of testing.
Prototyping an app is an essential aspect of app development, so use the latest and most excellent tools to build it. Backend – To increase the efficiency of action, you should concentrate on developing the internal part of the software.
To carry out efficient transactions, it is necessary to ensure the integration of your products with third-party programs.
The cost of building custom software development depends on the complexity of the product and the type of cooperation with specialists (individual freelancers, a dedicated development team or a custom development team, where each engineer is selected for a specific task).
Freelancer hourly pay is 20 USD – 50 USD, but the quality of such a specialist is questionable and the responsibility is entirely on you. This is suitable for small projects, on a small scale. Dedicated team can cost from 120 USD per hour. While custom teams of specialists can cost little more and start from 150 USD per hour and the responsibility in such teams is already borne by the contractor company, and in some cases covers the risks of unsuccessful developments, missed deadlines or possible force majeure situations.
Despite the initial cost estimate, it is also worth considering additional costs for additional risks, unaccounted for difficulties, and uncertain functions, which in total may require up to 30% of the already determined budget.
Here are some examples:
- USA: 150 USD/hour, 200,000 products;
- Ukraine: 40 USD/hour, 52,000 products;
- India: 30 USD/hour, 26,000 products.
These approximate figures depend on the project scale and the outsourcing company’s rating. Make sure to create a quality banking app.