How to Calculate Fintech Software Development Costs


What is Financial Software Development?

Financial software development is about creating digital systems and solutions that work for you and your clients in the financial sector, much like other software development processes. By using a contemporary tech stack and achieving the intended results, this kind of software system may provide you with many commercial chances.

For instance, financial software solutions enable businesses to improve service accessibility and provide a more customized customer experience while lowering expenses and strengthening security. In the Fintech industry, effective software solutions are frequently seen in digital wallets, personal loan applications, insurance management software, and mobile banking apps.

FinTech Software Industry: Market and Emerging Trends

With technology enabling complete transparency and accessible services, fintech has become one of the newest trends in software development.

Furthermore, a significant factor propelling the expansion of the financial technology software market is the increasing number of collaborations between financial institutions and national authorities. These companies use cutting-edge technologies to provide clients with integrated and value-added services at any time or place. By 2030, the Middle East, Asia Pacific, Africa, North America, and South America, which comprise the regions comprising the global Fintech market, are projected to produce USD 698.48 billion. Allied industry Research predicts that the following significant Fintech companies will rule the industry between 2021 and 2030:

  • Fund transfers and payments
  • Credits
  • Personal finance and insurance
  • Money handling

Let’s take a closer look at this industry’s development and learn about the most recent Fintech developments that will continue to influence it:

Financial Inclusion

The practice of combining financial services with a non-financial platform like insurance, bill payment, and loans is known as embedded finance. Embedded financial services benefit e-commerce by streamlining transactions and improving customer experience through quicker processes.


Neobanks: online-only banks with no physical branches, handling all services digitally. They’re licensed as extensions of existing financial firms. Neobanks, in contrast to traditional banks, are licensed solely to operate as an extension of a pre-existing financing company.

Accessible Banking

Open banking makes it easier for different financial institutions to share vital data, including consumer information. Data exchange is facilitated by the use of APIs, which provide Fintech applications access to the bank’s database. More services and better services will result from this.


Blockchain is becoming an important financial technology software facilitator because of its security and dependability. It allows businesses to execute contracts, log transactions, verify, manage paperwork, perform data analysis, and more.

Large-scale data

Big data, or the vast volumes of organized and unstructured data that banks and other financial institutions use to predict client behavior and develop winning business plans, follows next on the list of the newest Fintech trends.


Due to its ability to allow a Fintech development team to handle the legal elements of financial operations automatically, Regtech is becoming more and more in demand. The Regtech industry includes risk analysis, data processing and protection, and customer identification.

Different Types of Fintech Software Development Cost Estimation

Choose cost estimation methodology based on software scale: small, medium, or large, reflecting technical complexity.

1. Basic Software

Basic software, like scripts or plugins, provides simple functions and solutions for specific issues. Developers use pre-made solutions (e.g., MailChimp, Salesforce) for projects with basic features such as email subscription and simple login. These have limited data capacity and basic design, taking around two months to develop. Choose cost estimation methodology based on software scale: small, medium, or large, reflecting technical complexity.

2. Medium-Complexity Software

Basic software, e.g., scripts or plugins (MailChimp, Salesforce), provides simple functions (email subscription, login). Limited data capacity, basic design; development takes up to two months.

3. Highly Complex Software

These software products come with advanced design and technical support after launch. High-complexity software also offers a wide range of features, such as data encryption, video content support, and support for third-party services. Furthermore, multi-tool compatibility and optimized performance are prerequisites for complex solutions. More than six months are needed for the development process.

It should be mentioned that there are differences in the criteria used to create different kinds of digital solutions, so this classification is generalized. The process of estimating software development costs typically involves keeping track of the number of hours worked.

The primary cause of potential issues during the development phase is imprecise project cost estimates and computations. These elements may lead to missed deadlines and budget overruns. Ensure project success by discussing requirements with the product owner. A meeting between contractor and client is crucial to clarify project specifics and expectations.

Process of Developing Fintech Software

Developing software takes a lot of time and resources; it cannot be completed in a single day. Thus, the first things a business should think about are a concept and a niche. We have included the five primary processes below to help make the entire Fintech software development process a little more straightforward and efficient:

Compile the Project’s Needs

A market analysis is necessary before deciding on the future application and monetization strategy. Pay special attention to the project evaluation before setting the budget and schedule.

Make a Design

Systems for fintech software should be easy to use. The second most important factor is a robust user interface that provides a smooth user experience. List your favorites and sources of inspiration, then work with a UI/UX team to create a design.

Begin Developing the Software

Specify the features and parameters of the project for your Fintech software. Describe the problems the product fixes for people and how they would use it. Creating a Minimal Viable Product (MVP) involves developing a basic software version with essential functionalities for initial testing and feedback.

Test it Thoroughly

Carefully inspect and test the financial application software. You may study every aspect of the product’s operation and find any issues to avoid in the future by doing a test run.

Launch it and get feedback.

Start the Fintech program and get some early user input. Genuine customer feedback will identify problems and recommend things you should add, remove, or change.

If you want to use Fintech services but need the requisite knowledge, it is more accessible and more equitable to seek assistance from specialists. Whether you are a startup with a great idea or need technical support, the development team at Highen Fintech can help.

Technology Stack for Fintech Software Development

The Fintech software business is primarily made possible by technology; some may say it is the only driving factor. The primary objective of finance software development is to make financial services more easily accessible to users.

Because of this, every successful FinTech app has a technological stack that can meet the complex requirements of any project. Frameworks, languages, databases, containers, and all other essential specialized components fall under this category.

Introducing a few prevalent technologies being employed by the leading Fintech software company:

Programming Languages

  • Java
  • Python
  • Ruby


  • Spring
  • Django
  • Ruby on Rails


  • MongoDB
  • MySQL
  • PostgreSQL

9 Factors Affecting Fintech Software Costs

Would you like to learn how much our premium software development services will cost? Just get in contact with our experts.

  • Software Size

The software’s size, or scale, is one of the most significant indicators discussed during the development planning stage because it directly affects both the cost and timing of its creation. The possible user base also affects the price. The number of screens or pages in the software determines its size, and the potential number of expected users determines the size of the user base.

Project size varies from small (few pages/functions) to medium (5-7) and large (marketplaces, corporate apps, education platforms, etc.).

  • Functionality

Feature count influences software complexity, impacting development, testing, and deployment. It falls into three categories: function set expansion, business logic complexity, and technical challenges with cutting-edge solutions.

The customization of design elements is what adds complexity to the project’s design.

Let’s say you want to build a website where customers can register accounts for an online clothes store. You have two choices: standard email registration or social network registration.

The second option is made in the unlikely event that your software solution needs to be social network compatible. It will raise software project costs in the long run by complicating and adding time to the development process.

  • UI/UX Design

Developing the optimal user experience is a difficult undertaking. Creating a distinctive interface that allows for easy user interaction and audience targeting is the responsibility of a professional designer.

The complexity and volume of work required determine how much UI/UX designer services cost. Therefore, a sizable portion of the project budget may go toward creating the perfect UI/UX.

  • Team

The professionals that typically make up a conventional development team are as follows (keep in mind that the team size may vary depending on the size and deadlines of the project):

Project manager (PM)

Quality assu

rance engineer (QA)

Business analyst (BA)

Frontend developer

Backend developer

  • UI/UX Designer

Beyond developers, project managers, QA engineers, and business analysts play vital roles. Analysts ensure project requirements are well-defined, foreseeing and preventing issues. Project managers plan costs, define scope, and monitor progress. QA professionals rigorously test to enhance quality and reliability, identifying flaws before launch. Their coordination ensures a smooth testing process, making them “invisible heroes” in software development.

  • Platform

If you want to create an application, the platform (or platforms) you select will also affect how much it costs.

In particular, software development project cost estimation (if we talk about app development) depends on what platforms your solution is compatible with. Consider platform specifications (iOS, Android, Windows) for a passenger transportation app. Multi-platform increases development costs.

  • Tech Stack

Technology stack shapes the project budget. Tools optimizing speed may lack versatility for large, flexible projects. Specialist input is crucial for aligning development tools with business goals in budget estimation.

  • Hosting

The project’s server and hosting requirements can also greatly impact the budget. In particular, the speed and security requirements required in your industry can be determined by technology, the kind of servers or hosting, configurations, and maintenance model, all of which can affect the budget.

  • Engagement Model

A product owner and developers can work together using one of three models: in-house, outsourced, or staff. Explore each model in detail.

  • In-House

Product owners and developers collaborate in-house, outsourced, and outstaff models. Detailed exploration follows.

  • Outsourcing

You can contract with a different business to handle website development or any other project where you have deadlines to meet.

In this instance, you don’t have to be in charge of the precise method used to complete the assignment you gave them or who does it. You only need to wait for the outcome as the contracting company assumes control over the work processes.

  • Outstaffing

Outstaffing is ideal for specialized experts in your team for project work.

The contractor will give you the credentials you need to accomplish your objectives. You will design the work procedure and set up particular due dates and problem-solving techniques.

Outsourcing can occasionally prove to be more profitable than hiring new employees. You do not pay for the work on a project where the contractor accounts for risks and sets aside funds for management procedures; you pay only for the services rendered by a specialist.

What Is the Cost of Fintech Software Development?

Various factors influence the cost of producing Fintech software, which is equally crucial to the project’s success. The price may change based on your software needs and company goals. Basic Fintech: $30K-$50K. Advanced, with cutting-edge features: $60K-$80K+. Key factors influencing the estimate include the complexity of the Fintech app and the location of the development company:

Many geographical areas exhibit unique preferences for specific software solutions within the quickly developing financial technology (fintech) field. With an average expenditure of $120,000, banking software is in high demand throughout Asia. However, North America has a greater desire for these solutions, investing $360,000 on average in developing banking software. In Western Europe, banking software receives a substantial $250,000 budget, while Central and Northern Europe prioritize lending software with an average investment of $140,000. Across regions, Asia allocates $60,000, North America invests $150,000, and Central/Northern Europe and Oceania contribute $160,000 each to insurance software. 

Globally, investment software is in focus, led by North America at $210,000, with Asia, Central/Northern Europe, and Oceania closely following suit in their respective investments.

In North America, consumer finance software is especially in demand, with an average expenditure of $360,000. Surprisingly, Central and Northern Europe exhibit an astounding $1,500,000 investment in this area, but Asia, Western Europe, and Oceania all allot sizeable budgets between $110,000 and $320,000. These geographical differences highlight how different investment styles and goals reshape the financial software market in North America, Asia, Central and Northern Europe, Western Europe, and Oceania.

Language and time zone differences may come into play when choosing an offshore software development business. Although we are also an offshore provider, Highen Fintech offers its clients the option to select the engagement model that best suits their needs.

You have the authority to guide us while we complete the task. We schedule meetings at suitable times for our clients and work with them to develop a flexible communication strategy to avoid misconceptions and communication problems.

In what ways does Highen Fintech estimate its software development costs?

We provide two software development model cost estimation options: time and materials or fixed price.

The first model works better for projects where clients can agree on a preliminary set of specifications before our experts start working on the product and have definite technical requirements. Complete the form for a prompt response. For innovative projects, use a cost analysis model. Contact us to discuss and calculate your budget. Explore our startup software development services in the Services section.

Fintech Software Development's Future

While predicting the Fintech software business is tricky, several trends are clear. Market expansion continues; more firms are entering financial software dev, facing differentiation challenges.

Remember that the resources needed for its advancement expand together with the industry. Even though the development cost will probably increase, it won’t matter compared to how technology may transform our lives. Artificial intelligence, robotic process automation, virtual reality, open banking, smart contracts, and other innovations will be part of the Fintech solutions of the future. Thus, don’t hesitate to use the Fintech future’s chances to differentiate yourself from the competition.

How do you Hire a Fintech Software Development Company?

After learning the benefits of developing a Fintech software system and what lies ahead, let’s move on to choosing the development company that will provide you with the desired result.

To simplify, let’s examine how to hire software engineers to provide your consumers with the financial services and products they want:

  • Portfolio

Having a wide range of information is essential. Examine their finished project portfolio because you will want a financial software developer with appropriate experience working on your project.

  • Proficiency.

Only when your project’s needs are well defined can you determine the development experience required; remember that creating a Fintech app may demand a somewhat different set of talents than any other kind of project.

  • Customer Testimonials

If you are pleased with the Fintech software company’s experience and portfolio, the next step is to read client testimonials. Search for and recruit committed engineers who are genuinely valuable on websites like Clutch, GoodFirms, TopTal, and others.

  • Online Safety

Lastly, the team you employ to design bespoke financial software for your financial solution needs to be able to protect it before launching and maintain its cybersecurity after that. When choosing your Fintech developer, this is something you must stress.


In summary, there are two methods for estimating the cost of software development: Rough estimate and Straightforward estimate. None of these techniques, meanwhile, will be precise enough if used without the assistance of experts who will work on your project. Therefore, we advise you to contact our experts directly for more transparent pricing.

We provide two pricing models that are times, materials, and fixed price. Thus, please get in touch with our experts if you want to define the project’s scope (features, tech stack, etc.) and + estimate the budget.

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