Costs Associated With Building A Mobile Banking App
3 min read
Developing a banking app to provide a solution for mobile banking, generally known as Neobanking which is a fully digitized and exclusively online banking solution, comes with costs associated with the development stage. These costs must be considered by those companies that wish to create a mobile banking app, as they will need to be considered with the minimum viable product of the mobile banking app. The following article will briefly discuss the costs that are associated with building a mobile banking app.
Development Cost:
The development cost is the initial investment made to create the mobile banking app. This includes any costs associated with hiring a software developer and designing a software product. It also includes any start-up cost for hardware, such as hardware cards and servers, as well as other initial expenses needed to begin building the product such as marketing materials, office space, transportation, and personnel costs.
Operations Cost:
The operational cost is an ongoing expense that must be considered while developing the mobile banking app. This is the cost that is associated with maintaining the mobile banking app, such as staffing and purchasing hardware. The development cost of a mobile banking app can be measured by determining how much money it would take to hire a software developer for one year to design an application for this project. The software developer’s salary can be estimated using the industry average rate in which they are paid per hour, multiplied by 40 hours per week. For example, if an industry average salary of $75 per hour is multiplied by 40 hours per week, the software developer’s salary would be $3,000. Therefore, it would cost roughly $36,000 to hire a software developer for one year. Maintenance Cost: The maintenance cost is an ongoing expense associated with the app that must be considered while developing the mobile banking app. This is the cost that is associated with maintaining and operating the application after it has been developed and released to customers.
Product Cost:
The product cost is the total cost to build, develop and release the mobile banking app. This includes all of your research into what features your bank has, what features other banks have, as well as any other costs associated with this development phase. Market Research: The market research will give you an idea of what the needs are for mobile banking. You can then determine how different banks are meeting these needs and how they will change in the future because of technological advancements. Other research may include demographic details of your bank’s customers as well as information about other competitors in the market.
Product Schedule:
The product schedule is where you will map out what features and functionalities are required for your mobile banking app to be released in a reasonable amount of time. As much as possible, you should try to avoid non-essential things that will slow down development time, such as user testing or adding certain features that might not be necessary for success. Market Analysis:
In general, creating a mobile banking app usually costs around $20,000 to $30,000 from start to finish, not including the planning or design stages. Fintech start-ups that wish to create a banking app must be aware of the costs associated with building a mobile banking app as these will need to be factored into the investment needed to create the MVP or minimum viable product.
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