How Much Does It Cost to Develop a Banking App?
- Carlos Martinez
- Aug 28
- 8 min read
The fintech sector has matured quickly, but funding trends show that startups need to plan budgets carefully. CB Insights’ State of Fintech 2024 Report shows that global fintech funding declined 20% year-over-year to $33.7 billion, and deal volume fell 17% to 3,580. The fourth quarter, however, experienced a modest rebound to $8.5 billion, while the median deal size increased 33% to $4 million.
At the same time, the number of fintech users continues to rise, especially in digital payments. By 2024, the global user base exceeded three billion, according to Statista. Despite this increase in users and companies, overall investment activity has slowed, making careful budgeting a priority for startups planning banking apps.
Even a basic app with login, balance checks, and transfers requires secure authentication, backend infrastructure, and KYC/AML compliance. Adding AI-driven insights, multi-currency support, or real-time payments increases development complexity, integrations, and ongoing maintenance costs.
TL;DR: Banking App Development Costs
Cost range: $40K (basic MVP) to $1M+ (full neo-bank).
MVP (1 platform, core features): $40K-$70K.
Mid-tier (AI, multi-currency, 2 platforms): $100K-$250K.
Neo-bank (full compliance, admin dashboards): $300K-$1M+.
Market Overview: Banking App Development Costs in 2025
Banking apps are being adopted at different rates depending on region and type. In the U.S., Chime and Revolut maintain millions of active users, while in Latin America, Nubank and TymeBank are growing rapidly by offering digital-first services where legacy banks are slower to adapt.
Since 2023, development costs have risen due to stricter compliance requirements, integration of AI features, and higher engineering wages. Cross-platform frameworks and fintech APIs can reduce implementation time and lower costs, but they don’t eliminate the need for careful architecture and secure infrastructure.
Launching a functional banking app doesn’t require a multimillion-dollar budget, but every design, integration, and compliance decision has a measurable impact on cost.
1. Growth of Mobile Banking
Mobile channels have become central to how people manage their finances. In the U.S., nearly 90% of consumers now use digital payments, and by 2024, 60% of in-app purchases were made using digital payment methods - up from 52% in 2019. Usage spiked during the pandemic, with mobile interactions increasing around 8% compared to late 2019, though the rise has moderated as branches reopened.
Adoption is especially rapid in emerging markets, where digital-first platforms often replace older banking infrastructure entirely. For developers, these patterns make reliability, secure authentication, and scalable backend systems essential, even for basic banking applications.
2. Key Industry Statistics and Trends
Several developments affect the complexity and cost of building banking apps:
AI and Personalization: Implementing features like automated budgeting, spending analysis, and predictive insights requires additional backend systems, data handling, and secure integration. The Bank of England reports that 75% of firms already use AI, with another 10% planning adoption in the next three years, which shows AI is becoming a standard expectation in financial services.
Neo-Banks and Embedded Finance: Digital-only banks and apps that integrate financial services into other platforms need custom APIs and careful compliance management. These requirements increase development time and ongoing maintenance responsibilities.
Digital Wallets and Payment Innovations: Supporting multiple currencies, QR-based payments, and cryptocurrency wallets adds technical complexity. Each feature typically involves additional security measures, integration with third-party services, and thorough testing to meet regulatory standards.
Average Cost to Develop Apps Like Popular Banking Platforms
Some of the popular and growing apps like Chase, Venmo, and Chime have estimated development costs based on team size, feature set, and available funding data, even though exact figures aren’t public.
Chase-like App: Full-feature mobile and web app with dashboards, account integrations, and compliance: $100,000 - $500,000.
Venmo-like App:
Basic: $40,000 - $70,000
Intermediate: $70,000 - $100,000
Advanced: $100,000 - $150,000+
Chime-like App: Core mobile features, dashboards, and integrations: $35,000 - $250,000.
Costs vary based on features, platform, integrations, and compliance requirements.
Main Factors Influencing Cost
Banking app development costs depend on multiple variables that can shift your budget significantly. Let’s break them down.
1. App Type: Neo-Bank vs Aggregator vs Feature-Lite
App Type | Description | Cost Impact |
Neo-bank | Full-stack app with accounts, cards, loans | High (compliance, licensing, partnerships) |
Aggregator | Connects multiple accounts (e.g., Mint) | Medium (API integrations, data handling) |
Feature-Lite | Single-use app (e.g., budgeting) | Low (limited scope, simpler backend) |
A neo-bank requires licenses or partnerships, core processing systems, and compliance, typically $300K-$1M+. A budgeting app with Plaid integration ranges around $50K-$150K.
2. Complexity & Core Features
Your feature set directly correlates with development time and costs.
Essential Features
These are non-negotiable:
Secure login (biometrics + 2FA).
Account dashboard.
Transaction history.
Internal transfers.
Balance checking.
Building these on one platform (iOS or Android) with a basic backend takes 3-5 months with a team of 3-4 engineers. Estimated cost: $40K–$70K.
Security is critical here. Even basic features require encryption, session management, and audit logging.
Advanced Features
Add any of these, and costs rise fast:
AI-powered insights: Requires data pipelines, ML models, and UI for recommendations.
Multi-currency support: Adds FX logic, compliance with foreign regulations, and banking partner agreements.
QR payments: Needs camera integration, secure tokenization, and backend validation.
Budgeting tools: Involves categorizing transactions, forecasting, and user customization.
Each advanced feature can add $15K-$50K+ in development and testing. They also increase maintenance and compliance load.
3. Platform Choice: iOS, Android, or Both
You can build for iOS, Android, or both.
Cross-platform (React Native, Flutter): One codebase for both platforms. Saves 30-40% in development time.
Most startups in 2025 use React Native or Flutter. Performance is slightly lower than fully native apps, and occasional platform-specific bugs can occur. For banking apps with standard user interfaces, these differences have minimal impact on functionality and user experience.
Going cross-platform can reduce initial costs by $20K–$40K compared to building two native apps.
4. Tech Stack & Integrations
Your tech stack affects long-term cost and scalability.
Common choices:
Frontend: React Native, Flutter
Database: PostgreSQL, MongoDB, Redis for caching.
Cloud: AWS, Google Cloud, Azure.
Integrations are just as important. You’ll likely need:
Plaid or Yodlee for bank account linking.
Stripe, Synapse, or Unit for payment processing.
Twilio for SMS verification.
Auth0 or Firebase for authentication.
Each integration adds setup time and ongoing fees. Some, like KYC providers, charge per verification. Factor these into your budget.
5. Design & UX
Banking apps must be easy to use, especially for first-time users. Expect to spend $10K-$25K on design, depending on complexity. This includes:
User flows and wireframes.
High-fidelity UI mockups.
Accessibility compliance (WCAG 2.1).
Design system setup.
Good design reduces support costs and increases user retention. Don’t treat it as an afterthought.
6. Security & Compliance (PCI-DSS, KYC/AML, GDPR)
This is where many startups underestimate cost.
You’ll need:
KYC/AML checks: Verify user identity using services like Jumio or Onfido.
PCI-DSS compliance: Required if handling card data. Involves audits, secure storage, and network monitoring.
GDPR/CCPA: Data privacy laws that require consent flows and data deletion tools.
SOC 2 Type II: Often required by partners or investors. Average audit costs: $15K-$50K annually.
Compliance is ongoing. So, budget for legal reviews, monitoring tools, and periodic audits.
7. Team Structure and Regional Rate Differences
Hourly rates vary by region:
Region | Hourly Rate (USD) |
North America | $100-$200 |
Western Europe | $70-$150 |
Eastern Europe | $40-$120 |
Latin America | $29-$99 |
Asia | $20-$80 |
In-house teams offer more control but may take longer.
Outsourcing to experienced fintech teams can reduce time-to-market.
Latin America rates vary by country; nearshore development in places like Colombia typically ranges from $29 to $49 per hour.
8. Ongoing Maintenance, Updates & Infrastructure
Development isn’t over at launch. You’ll need to budget for:
Bug fixes and updates: 15-20% of initial dev cost per year.
Backend hosting: $1K-$5K/month depending on users.
DevOps and monitoring: Tools like Datadog, Sentry, CI/CD pipelines.
Compliance updates: New regulations, certificate renewals.
Estimated Cost Ranges
Below are approximate budgets for different app tiers.
App Type | Cost Range (USD) | What Included |
$40K-$70K | One platform, essential features, basic security, remote team | |
Mid-Tier App | $100K-$250K | Both iOS and Android, AI features, dashboards, third-party integrations |
Full-Scale Ecosystem | $300K-$1M+ | Mobile + web + admin panel, full compliance, multi-region support, dedicated DevOps |
These ranges assume a skilled development team, proper testing, and no major changes to scope.
Hourly Rates by Region (2025 Estimates)
Region | Frontend (USD/hr) | Backend (USD/hr) | Full-Stack (USD/hr) |
North America | $120-$180 | $130-$200 | $140-$180 |
Latin America | $60-$90 | $70-$100 | $75-$95 |
Eastern Europe | $70-$110 | $80-$120 | $85-$110 |
Asia | $40-$70 | $50-$80 | $55-$75 |
Rates are increasing slowly, about 3-5% per year, due to inflation and demand for specialized skills.
Hidden Costs to Watch Out For
Beyond development and design, several expenses can significantly affect your banking app budget:
Licensing, Certification & Legal Fees: Banking apps require KYC/AML provider subscriptions, PCI-DSS compliance certification, and app store licenses. Each of these is mandatory and can add tens of thousands of dollars depending on scale and region.
Third-Party Services: Analytics platforms (Firebase, Mixpanel), fraud detection tools, and monitoring solutions (Sentry, Datadog) are commonly used to maintain reliability and security. These typically involve ongoing subscription fees.
Marketing, Testing & Support: Launch campaigns, quality assurance, and L1/L2 support teams are essential for smooth operation and user retention. Even with an efficient MVP, these costs accumulate quickly and should be factored into the overall budget.
How to Lower Development Costs Wisely
You can reduce costs without sacrificing quality. Here’s how.
1. Start with a Clear MVP Plan
Discovery Phase Investment: Spend $3,000 - $8,000 on thorough planning before development begins:
User research and market analysis.
Technical architecture documentation.
Detailed feature specifications.
Risk assessment and mitigation strategies.
This upfront investment prevents costly changes during development when modifications cost 3-5x more to implement.
MVP Feature Prioritization: Focus on features that directly validate your core business hypothesis:
User registration and authentication.
One primary use case (transfers, payments, or account aggregation).
Basic transaction history.
Essential security measures.
Defer advanced features like AI insights, investment tracking, or multi-currency support until after user validation.
2. Focus on Core Features First
Phase 1: Core Banking (Months 1-3)
Account connectivity
Balance checking
Basic transfers
Transaction history
Phase 2: Enhanced Usability (Months 4-5)
Push notifications
Better UI/UX
Customer support integration
Phase 3: Advanced Features (Months 6+)
Budgeting tools
AI-powered insights
Investment features
This approach allows you to launch faster and gather user feedback before investing in complex features.
3. Choose the Right Team or Vendor
Evaluation Criteria:
Fintech Experience: Teams with banking app experience reduce learning curve costs.
Regulatory Knowledge: Understanding of PCI-DSS, KYC/AML requirements.
Security Expertise: Experience with encryption, fraud detection.
API Integration Skills: Familiarity with Plaid, Stripe, banking APIs.
Team Models:
In-house Team: Higher control, higher costs, longer hiring timeline.
Development Agency: Faster start, proven processes, medium costs.
Hybrid Approach: Core team in-house, specialists outsourced.
4. Use Cross-Platform Tools or Ready-Made Fintech Modules
Cross-Platform Development
Flutter: Google’s framework, single codebase, solid performance.
React Native: Facebook’s solution, large community, reusable code.
Xamarin: Microsoft’s platform, suited for enterprise integration.
Using cross-platform tools can reduce development by 20-30% compared to separate native apps.
Pre-built Fintech SDKs
Synapse: Financial services API, custom pricing.
Moov: Payment processing platform, transaction-based pricing.
Bond: Card issuing and banking services, per-account pricing.
These platforms can shorten initial development by 3-6 months but create ongoing dependencies.
Open-Source Solutions
Supabase: Backend-as-a-Service, alternative to Firebase.
Hasura: GraphQL API generation.
PostgREST: Automatic REST API from PostgreSQL.
Using open-source tools increases development for standard backend and API functionality.
Getting Started
Building a banking app in 2025 is expensive but achievable with the right planning. Key takeaways:
Start lean: Validate with an MVP before scaling.
Compliance isn’t optional: Budget for PCI-DSS, KYC/AML, and regional laws.
Leverage APIs: Use Plaid, Stripe, and fintech SDKs to save time and money.
Team matters: Balance cost and expertise - nearshore teams often offer the best value.
The fintech sector is competitive, but clear budgeting and prioritization set successful projects apart. Focus on core features first, then iterate based on user feedback.
You can connect with our team for more insights on banking app development, or get guidance on planning your project budget and feature roadmap.
Frequently Asked Questions
How much does it cost to make a banking app?
Between $40,000 for a basic MVP and over $1 million for a full neo-bank. Most mid-tier apps cost $100K-$250K to build.
How much does a financial app cost to develop?
Similar to banking apps. Basic financial tools (budgeting, tracking) start around $50K. Apps handling money or transactions cost more due to security and compliance.
What’s the cost of building an app like Chase?
Developing a full-feature banking app with mobile dashboards and account integrations typically ranges from $100,000 to $500,000, depending on features, platforms, and compliance requirements.
