Banking App Development: How Much Does it Cost to Build an App like Mashreq?

Latest Banking App Development Market Statistics

Here are the detailed banking market statistics:

1. The global banking market reached USD 167.55 billion in 2023 and is projected to grow to USD 1264.6 billion by 2032 from USD 209.7 billion in 2024 with a CAGR of 25.18%.
2. Banking apps are gaining popularity. In the Digital Payments market, users are expected to reach 5.48 billion by 2027.

Also Read: Blockchain in Banking – Opportunities and Challenges to Overcome

Factors Affecting the Cost to Build an App Like Mashreq

Banking app development cost can vary significantly depending on several parameters. Here are some key fintech app development factors that influence the overall cost:

1.Platform Choice

The choice between developing for iOS, Android, or both plays a significant role in banking app development budget determination.

• Native apps (iOS or Android-specific) tend to be more expensive than cross-platform apps because they require separate development efforts. On average, a native app could cost between $20,000 to $45,000 for one platform.
• Cross-platform solutions like React Native or Flutter might lower costs by around 30%, but there may be trade-offs in performance and user experience.

If you're targeting a large and diverse user base, developing for both platforms is likely essential but will raise the banking app development budget.

2.App Features and Functionalities

The more advanced and varied the banking app development features, the higher the development costs. Banking apps like Mashreq include several critical functionalities, such as:

• Account management and transaction history: Standard features, accounting for 20% to 30% of the total development cost.
• Payment gateways and bill payments: Adding secure, multi-layered payment solutions can increase Mashreq app development cost by $10,000 to $30,000.
• AI-based chatbots: To improve customer support and self-service, implementing chatbots can add another $10,000 to $25,000 depending on the complexity.
• Personalized financial insights: Using AI and machine learning in mobile apps to offer custom recommendations could further raise the Banking app development pricing by 15% to 20%.

Each of these features must be carefully integrated to ensure seamless user interaction and high performance.

3.Design and User Experience

A well-designed app that offers a smooth and intuitive user experience will naturally cost more, but it’s a key differentiator in the competitive Banking space.

• UI/UX design typically accounts for 10% to 15% of the total cost. Creating a seamless, simple interface that maintains security and functionality is crucial, especially for banking apps like Mashreq where users expect ease of use.
• Implementing advanced design features, like personalized dashboards or animated transitions, could raise costs by another $5,000 to $25,000.

A high-quality design can not only attract more users but also retain them, making it a wise investment.

4.Technology Stack

The technology stack you choose for your app can significantly impact the development cost.

• Backend development with languages like Node.js, Python, or Java is vital for ensuring the app's smooth operation, particularly for handling large volumes of transactions. 
• Backend services could cost around $10,000 to $40,000 depending on complexity.
• For the front end, frameworks like React.js or Vue.js are commonly used, with costs typically accounting for around 10% to 20% of the overall project budget.
• Cloud storage services like AWS or Google Cloud will also contribute to recurring expenses, often costing around $500 to $2,000 per month, depending on the scale of your Mashreq like banking app.

5.Regulatory Compliance

Neo banking apps like Mashreq must comply with local and international banking and data protection regulations such as: 

• Know Your Customer (KYC)
• Anti Money Laundering (AML)
• Payment Card Industry Data Security Standard (PCI DSS)
• Digital signature certificates 
• General Data Protection Regulation (EU GDPR)
• Industry-specific and region-oriented regulations

Incorporating compliance measures requires legal expertise and additional development time, increasing the cost by up to 20%. Failing to meet these requirements can result in costly fines or legal actions, making this a non-negotiable expense. Apptunix being a leading fintech mobile app development company can help you overcome these challenges with ease. 

6.Security and Compliance

Security is paramount in any banking app, given the sensitive nature of financial data.

• Encryption protocols, multi-factor authentication (MFA), and fraud detection mechanisms are essential for safeguarding user information. This could account for up to 15% of the total development budget.
• For example, integrating end-to-end encryption and biometric authentication (such as fingerprint or facial recognition) can add $5,000 to $10,000 to your costs.

Incorporating robust security measures from the start can save money in the long run by preventing data breaches and user dissatisfaction.

7.Third-Party Integrations

Many banking apps rely on third-party services to provide additional functionality, such as:

• Payment processing via platforms like Stripe or PayPal, involves additional costs for integrating APIs. This could range between $5,000 to $15,000.
• Integrating with KYC services to verify users' identities adds another $10,000 to $25,000 depending on complexity.

Each integration introduces additional coding and testing work, driving up both development time and costs.

8.Maintenance and Updates

Once your banking app is live, continuous maintenance and updates are essential to keep the app secure and relevant. Our top banking app development agency in Dubai offers post-launch services. 

Also Read: Cost vs. Quality: Balancing Your Budget in Mobile App Development

Banking App Development like Mashreq Stages & Their Costs

Developing a banking app like Mashreq involves multiple stages, each contributing to the overall cost of the project. Below is a breakdown of each phase along with its associated expenses.

#Step 1:Determine Your App’s Objectives

Before any development begins, it's essential to clearly define your banking app’s objectives. These could include offering seamless mobile banking, enabling secure transactions, or providing personalized financial insights.

Key Tasks: Identifying user needs, determining key app features, and defining the app's core purpose.

Cost Range: This stage might cost between $5,000 to $10,000 for consulting with experts and finalizing app goals. However, our company provides free one-hour consultations for better decision-making. 

#Step 2:Planning the App’s Architecture

In this stage, you'll outline the app’s infrastructure and technical requirements. A well-planned architecture ensures scalability, performance, and security.

Key Tasks: Creating wireframes, defining databases, selecting the tech stack (such as backend frameworks and front-end libraries).

Cost Range: Architecting the app’s infrastructure could cost between $15,000 to $25,000 based on complexity.

#Step 3:Designing a User-Centric Interface

The app’s design determines how easily users will be able to navigate the app and perform tasks like checking balances, transferring money, and more.

Key Tasks: Wireframing, prototyping, and designing the user interface and experience (UX/UI).

Cost Range: High-quality bank app designs could range from $5,000 to $50,000 depending on how sophisticated and visually appealing the design is.

#Step 4:Developing the Banking App

This is the core of the project, where developers bring your app to life. The choice between native or cross-platform development will significantly impact the banking app development cost for banks.

Key Tasks: Backend development (server-side), front-end development (user interface), API integration, database development.

Cost Range: Developing a banking app could range from $10,000 to $60,000 depending on the platform (iOS, Android, or both), complexity of features, and integrations.

#Step 5:Testing & Security Audits

Once the app is developed, rigorous testing is crucial to ensure there are no bugs, security loopholes, or performance issues. Banking apps, in particular, need robust security measures.

Key Tasks: Functionality testing, security testing (penetration tests, vulnerability scanning), and performance testing.

Cost Range: Testing and security audits typically cost around $5,000 to $10,000, but can go higher depending on the app’s complexity and the number of security layers involved.

#Step 6:App Store Optimization (ASO)

Once the app is ready for launch, optimizing it for app store rankings is crucial for visibility and downloads. This includes optimizing the app title, description, and keywords for both the Apple App Store and Google Play Store.

Key Tasks: Keyword optimization, crafting engaging app descriptions, high-quality screenshots, reviews, and rating management.

Cost Range: App Store Optimization typically costs between $3,000 to $7,000 depending on the scope of the work.

#Step 7:Launching & Marketing Your App

Marketing is critical to driving user acquisition after launch. This involves creating a launch plan, running paid ads, and leveraging social media to attract new users.

Key Tasks: Pre-launch promotion, digital marketing campaigns (SEO, PPC, social media), influencer collaborations. 

Cost Range: Initial marketing budgets for a banking app launch can vary widely, typically between $2,000 to $40,000, depending on your target audience and marketing channels.

#Step 8:Ongoing Maintenance & Updates

Once the app is live, it’s essential to provide ongoing support to fix bugs, roll out updates, and introduce new features based on user feedback and evolving market demands.

Key Tasks: Fixing bugs, performance improvements, software updates, and adding new features.

Cost Range: Ongoing maintenance typically accounts for 5% to 10% of the initial development cost annually. For a banking app that costs $200,000 to develop, expect to spend $10,000 to $20,000 per year on maintenance.

Key Features to Include in Your App Like Mashreq in 2024

When developing an app like Mashreq, incorporating cutting-edge features is key to delivering a superior user experience and staying ahead of competitors in the banking industry. Below are some essential features that you should include:

I:Personalized Recommendations

These days users expect mobile banking apps like Mashreq to offer tailored suggestions based on their spending patterns and financial behavior. Personalized recommendations with the advent of AI in the banking system help users to make better financial decisions, whether it’s for saving, investing, or managing debt.

For instance, suggesting customized loan or investment plans based on a user’s transaction history and spending behavior.

II:Automated Budgeting

An automated budgeting feature can track users' income and expenses in real time, categorizing spending to help them manage their finances effectively. This helps users stay on top of their finances by providing a detailed overview of their spending habits. This feature empowers users to set financial goals and track progress seamlessly.

III:Fraud Detection

Security is a top priority for banking apps. Integrating advanced fraud detection systems can help identify suspicious activities and protect users' accounts from unauthorized transactions. For example, real-time notifications of potential fraudulent transactions, with an option to freeze accounts directly from the app if necessary.

IV:Enhanced Customer Support

Needless to say, offering 24/7 customer support through AI chatbots or live agents helps resolve user queries quickly and efficiently. An AI-powered support system can answer common questions, guide users through tasks, or connect them to human representatives for more complex issues.

Now, Mashreq has introduced an AI-powered digital engagement chatbot known as the Mashreq Bot. This chatbot is designed to simulate conversations with customers across various digital platforms, providing a more interactive and efficient banking experience. 

V:Investment Management

Adding an investment management tool within your app allows users to grow their wealth with ease. This feature can offer portfolio tracking, stock recommendations, and personalized investment strategies based on risk tolerance.

For instance, you can have a dashboard that shows a user’s portfolio performance, along with AI-driven investment suggestions tailored to individual risk profiles.

VI:Debt Management

Debt management is a vital feature, especially for users looking to consolidate loans or improve their credit scores. The app can provide actionable insights into paying off debt faster and offer repayment plan options. This helps users manage debt more effectively, reducing financial stress and improving their overall financial health.

Now, it is time to find out the precise banking app development cost for startups looking to make an investment. 

Also Read: Why Dedicated Post-Launch App Development Support is Essential to Make Your App a Success

How Much Does it Cost to Build an App like Mashreq? 

To give you a rough idea about the Mashreq app development cost, a basic banking app can range from $20,000 to $80,000. On the other hand, a more feature-rich banking app with advanced technologies can go up to $180,000 or more.

It is recommended that you ask how much does it cost to build a banking app like Mashreq directly to a top banking app development company like Apptunix. Our banking app developers are well-versed with the latest technologies like AI, blockchain, and metaverse to offer robust banking solutions. 

Note: This is an estimated banking app development cost and can vary significantly based on factors like app complexity, platform (iOS, Android, or both), design, and location of the development team.

 Smart Strategies to Cut Banking App Development Cost

Building a banking platform can be costly, but with the right strategies, you can manage and overcome banking app development challenges without sacrificing quality. Here are four smart ways to cut costs when developing your banking app:

• I:Prioritize App Features

One of the most effective ways to control costs is by carefully selecting the banking app development features you want. Instead of overwhelming the app with every possible feature, focus on core functionalities that directly serve your users' needs.

If you’re building a banking app like Mashreq, focus on critical features like secure payments, transaction tracking, and basic customer support before adding advanced features like investment management or debt consolidation tools.

• II:Choose the Right Development Partner

Selecting a trustworthy and experienced banking app development company is crucial for controlling costs. A partner with expertise in banking development can guide you through cost-saving options, such as using open-source solutions, minimizing code complexity, and implementing scalable solutions.

Look for a banking app development agency in a region where the developers charge less per hour fee. Like in Dubai, banking developer’s prices start at only $25/hr as compared to the USA or Europe where charges can be as high as $100/hr. 

• III:Choose the Right Platform

By choosing a cross-platform approach, you can save 30-40% on a banking app development timeline and cost. Plus, you'll be able to maintain a single codebase, which reduces maintenance expenses.

If most of your target audience uses Android, consider launching the Android version first and then expanding to iOS later, or use a cross-platform solution to release on both platforms simultaneously without doubling the banking app development budget.

• IV:Consider MVP Development

A Minimum Viable Product approach involves launching the app with just the essential features to test user demand and gather feedback before investing in additional functionalities. Developing an MVP allows you to get your app to market quickly and at a lower cost. You can then gradually add more features based on user feedback

 Innovative Monetization Strategies for a Banking App Like Mashreq

Mashreq, which is the leading digital banking platform, uses several strategies on how to generate revenues for its operations. Understanding these methods offers valuable insights for developing a profitable banking app.

• I:Transaction Fees

Mashreq charges fees for specific services, such as international money transfers and expedited transactions. These fees provide a steady revenue stream while offering customers convenience and speed.

• II:Subscription Models

While Mashreq offers a range of free services, it may introduce premium features or account types that require a subscription fee. This model ensures consistent revenue and allows users to access enhanced services.

• III:In-app Purchases

The app facilitates in-app purchases, allowing users to buy additional services or products from within the platform. This strategy makes users more engaged and brings extra revenue.

• IV:Interchange Fees

From the merchants, Mashreq receives interchange fees every time a customer applies any Mashreq-issued card to make a transaction. This fee, which is normally a very small fraction of the transaction value, is an important source of the app’s income.

• V:Strategic Partnership And Affiliate Marketing

By collaborating with several service givers and retailers, Mashreq provides its customers with rebates and special offers. In return, it earns commissions or referral fees, diversifying its income sources.

How can Apptunix Help you Cut down Mashreq Like App Development Costs?

At Apptunix, we specialize in offering cost-effective mobile app development services to help you significantly cut down the cost of developing an app like Mashreq. With 11+ years of experience in developing secure, scalable, and feature-rich mobile applications, our team of skilled developers uses efficient methodologies to prioritize core features while keeping costs in check. 

We offer flexible engagement models, advanced technology stacks, and cross-platform solutions that streamline the entire process, saving you both time and money. Our deep understanding of the fintech industry ensures we deliver robust and compliant banking apps like Mashreq, all while staying within your budget.

So, what next?

You can schedule a free consultation right now and discuss your project details to start the process.