How much does it cost to build a mobile banking app like Monzo

Summary

Building a mobile banking app like Monzo requires careful planning, advanced technology, and a focus on security, usability, and compliance. These apps offer convenience, real-time account management, and personalized financial services, driving adoption among millennials, Gen Z, and businesses worldwide. Key features include account setup, KYC verification, fund transfers, push notifications, AI-based insights, and biometric authentication, while advanced integrations enhance user engagement. Costs vary depending on app complexity, platform choice, security measures, and third-party integrations, ranging from $50,000 to $500,000 or more. Partnering with experts like QSS Technosoft ensures a seamless, secure, and user-friendly digital banking experience. Future trends such as AI, blockchain, biometric security, and digital wallet integration promise to further transform mobile banking.

Introduction

Have you ever questioned the transformative impact of the cell banking app on our daily lives? Indeed, there is a big impact!

In recent years, they have seamlessly woven convenience, security, and financial accessibility into the fabric of our routines. Take, as an example, Monzo, a UK-primarily based digital financial institution that has not handiest redefined banking but has set a benchmark with its user-friendly app and groundbreaking capabilities.

Intriguingly, statistics from a recent study suggest a huge surge in the international adoption of digital banking, with a projected increase of 5.4% annually. This surge is reflective of the developing reliance on mobile banking apps. 

QSS Technosoft is a leading expert in custom mobile banking solutions, specializing in creating secure and user-friendly apps tailored to your unique business needs. Their experienced team ensures seamless integration and compliance with industry standards to deliver top-notch digital banking experiences.

Now, in case you are considering constructing a mobile banking app like Monzo, you might be wondering about the exact cost worries in the development process.

 In this blog, we will discover the idea behind the development of mobile banking apps, their importance, and offer you a fee breakdown for building an app like Monzo.

Why Mobile Banking Apps Are Essential Today

Increasing Customer Demand

With the rapid advancement of technology, customers now expect seamless digital access to their financial services. Mobile banking apps meet this demand by providing 24/7 access to savings accounts from anywhere. The convenience of managing finances on the go has become a necessity for modern users. Banks and financial institutions are adapting to these expectations to stay competitive. This shift is driving widespread adoption of mobile banking apps worldwide. These apps simplify day-to-day banking, making routine financial tasks faster and more accessible. Users can easily transfer money, manage payments, and monitor their current accounts and savings accounts with just a few taps. Many of these services are offered with fee-free transactions, enhancing user convenience. Revolut operates in 130 countries. The Credit Thing is an app-based market player that offers a full set of banking services, including free cash withdrawals. Starling Bank serves more than 2 million accounts, including 350 thousand accounts of small businesses.

Various Benefits for Users

Mobile banking apps offer unparalleled convenience by allowing users to perform instant transactions anytime without visiting a branch. Enhanced security features, such as biometric authentication and encryption, protect sensitive data. Transactions are processed faster, enabling instant money transfers and payments. Real-time account management keeps users informed about balances, spending, and alerts. Many of these services are offered with fee-free transactions, enhancing user convenience. Together, these benefits improve customer satisfaction and trust in digital banking. Many online banks like Monzo are not registered and licensed banks; they are financial technology companies. ONE is an online banking service that partners with Coastal Community Bank to offer banking services.

Role of Technology

Technology is revolutionizing financial services by enabling innovative solutions like mobile banking apps. Advanced APIs and cloud computing facilitate seamless integration with various banking systems. Artificial intelligence and machine learning enhance personalization and fraud detection. The adoption of digital platforms reduces operational costs for banks while improving user experience. Overall, technology continues to drive the evolution of accessible, secure, and efficient financial services. The rise of neobanks illustrates a substantial shift from traditional physical banking to digital-only banking solutions 73% of bank account holders in the UK managed their banking via mobile devices in 2024, indicating a strong preference for digital banking app solutions. In 2021, neobanks generated $6.8 billion in revenue, showcasing their increasing popularity and revenue potential 57% of millennials and 64% of Gen Z in a PwC survey have a financial account with nontraditional institutions, highlighting a trend toward digital banking.

Understanding the Concept Behind the Mobile Banking App Like Monzo

Mobile banking apps like Monzo have witnessed significant growth in recent years, driven by the increasing adoption of smartphones and the growing demand for convenient and accessible banking solutions.

According to a report by Statista, the global number of mobile banking app users is projected to reach 1.75 billion by 2024.

These apps use advanced technologies to ensure the security and reliability of fee-free transactions. They employ encryption algorithms to safeguard user data and protect against unauthorized access. Additionally, they use secure authentication methods like biometric recognition (such as fingerprint or facial recognition) to enhance user verification.

From a technical perspective, mobile banking apps rely on APIs (Application Programming Interfaces) to connect with various banking systems and third-party services. APIs enable seamless integration, allowing users to link their accounts, make payments, or access financial data from multiple sources within a single app.

With the continual advancements in mobile technology and data analysis capabilities, the future of mobile banking apps appears promising, offering customers more convenience, security, and personalized financial management options.

Read Our Page: Complete Guide to Mobile App Development in 2023

Why is a mobile banking app like Monzo important?

Mobile banking apps have gained popularity for several reasons. Let's take a look at some below. 

Convenience and Accessibility

One of the primary reasons why companies and businesses need a mobile banking app is convenience. With a mobile banking app, businesses can access their financial information and perform transactions anytime and from anywhere. 

•  As an example, the “Square Point of Sale” app provides small businesses with a mobile banking solution that enables them to accept card payments through their smartphones or tablets.

Save your Maximum Time

A mobile banking app streamlines financial tasks for companies and businesses, saving them valuable time. With features like mobile app check deposit, electronic invoicing, and automated bill payments, businesses can save hours that would otherwise be spent on manual paperwork and trips to the bank. 

• For instance, QuickBooks' mobile banking app offers small businesses the ability to track expenses, create invoices, and manage cash flow in real-time, freeing up time for entrepreneurs to focus on running their businesses.

Security and Protection From Fraud

 Mobile banking apps provide an extra layer of security for businesses compared to traditional banking methods. Advanced encryption technologies, secure login credentials, and biometric authentication help protect sensitive financial data. 

• For example, Bank of America's mobile banking app offers robust security features such as fingerprint and facial recognition, as well as real-time alerts for suspicious activity.

Financial Management and Insights

Mobile banking apps offer businesses valuable tools to manage their finances effectively. Features such as expense investment tracking, budgeting tools, and financial insights provide businesses with a comprehensive view of their financial health. 

• For instance, the “Mint” app allows businesses to link all their financial accounts, track expenses, and create customized budgets, providing a holistic view of their financial situation.

Enhanced Customer Experience

A mobile banking app can significantly improve the overall customer experience for businesses. Customers can make quick and secure payments through the app, reducing friction in the payment process.

• For example, Starbucks' mobile banking app not only allows customers to make payments but also offers rewards and personalized recommendations based on their preferences.

Read Also: Guide & Cost to develop Political Organization App

Key Features of a Mobile Banking App Like Monzo

User Registration and Account Setup

A smooth and intuitive user registration process is essential for onboarding new customers quickly. It typically includes easy sign-up options, such as email or phone number verification. Account setup should be user-friendly, allowing customers to link their existing bank accounts or open new ones seamlessly.

KYC Verification and Security Protocols

Account Management and Transaction History

Users should have full control over their accounts, including viewing balances, recent transactions, and statements. The app should provide a detailed transaction history with filters and search options for easy tracking. Real-time updates ensure users stay informed about their financial activities.

Fund Transfers and Payments

Seamless money transfers between accounts, both within the bank and to external accounts, are a must-have feature. The app should support instant payments, bill settlements, and peer-to-peer transfers with low fees. Integration with payment gateways enhances convenience and speed.

Push Notifications and Alerts

Timely notifications alert users about account activities, such as successful transactions, low balances, or suspicious behavior. Customizable alerts help users stay on top of their finances and enhance security by providing immediate updates. Notifications can be delivered via SMS, email, or in-app messages. These timely alerts contribute significantly to the app's success by keeping users engaged and informed.

Advanced Tools

Advanced tools help users manage their finances by tracking spending patterns and categorizing expenses. Visual analytics, such as charts and graphs, offer insights into financial habits. Personalized budgeting features encourage saving and smarter money management.

Customer Support

Effective customer support enhances user satisfaction and trust. Chatbots can handle common queries instantly, providing 24/7 assistance. Live chat options connect users with human agents for complex issues, ensuring timely problem resolution.

Optional Advanced Features

AI-based recommendations can offer personalized financial advice and product suggestions. Card controls allow users to manage card usage, including freezing or setting spending limits. Multi-currency support caters to users who transact in different currencies, ideal for frequent travelers or international business. Advanced features in banking apps can enhance user satisfaction and retention rates.

The majority of users expect personalized experiences from mobile banking applications, which increases engagement and retention rates. Revolut offers a free standard account that includes a personalized debit card, fee-free cash withdrawals at 55,000 ATMs, and low fees on currency exchange and other transactions.

Key Factors Affecting the Cost of Development

Discovery and Planning

Discovery and planning are the foundational steps in the mobile banking app development process. This phase involves thorough market research, defining project goals, and outlining core features to ensure the app meets user needs and business objectives. Effective planning helps manage initial costs and sets a clear roadmap for a successful development process.

App Type (iOS, Android, or Cross-Platform )

The choice of platform significantly influences the cost to build a mobile banking app. Developing separate native apps for iOS and Android requires more resources and time compared to building a cross-platform app that works on both systems. However, native apps often provide better performance and user experience, which may justify the higher investment. Additionally, the ability to seamlessly transfer money within the app is a core functionality that can affect development complexity and cost.

Complexity and Functionalities

The range and sophistication of features directly impact banking app development costs. Basic banking apps with essential functions like account management and money transfers cost less, while complex apps with advanced features such as AI-driven insights, multi-currency support, and biometric authentication require more development time and expertise. The more complex the app, the higher the cost.

Backend Infrastructure and Security Measures

A robust backend infrastructure is essential for handling real-time transactions and ensuring data integrity. Implementing strong security measures, including encryption, two-factor authentication, and compliance with regulatory standards, adds to development complexity and cost. Security is paramount in banking apps to protect sensitive user data and maintain trust.

Integration with Payment Gateways

Seamless integration with third-party services like payment gateways, credit bureaus, and other financial institutions is crucial for a functional banking app. The number and complexity of these integrations affect development time and cost. Customizing and maintaining these connections also require ongoing investment.

Design and User Experience

An intuitive and visually appealing design enhances user engagement and satisfaction. Investing in high-quality UI/UX design involves user research, prototyping, and iterative testing, which contribute to banking app development costs. A well-designed app can provide a competitive edge by improving usability and customer retention.

Ongoing Maintenance and Updates

Post-launch maintenance is essential to keep the app secure, compatible with new operating system versions, and aligned with evolving user needs. Regular updates to fix bugs, enhance features, and address security vulnerabilities incur ongoing costs. Planning for maintenance ensures long-term operational efficiency and user satisfaction.

Cost breakdown of building a mobile banking app like Monzo

Here comes the most important: Cost! Building a mobile banking app like Monzo involves several factors that contribute to the overall cost. These factors include:

Development Team:

 Hiring a development team, including project managers, designers, Android and iOS app developers, backend developers, and quality assurance professionals, can range from $50,000 to $300,000. 

Features and Functionality: 

The cost of developing features for your app can range from $35,000 to $65,000 for an application with basic features. More advanced and unique features will require additional development time and resources, increasing the cost accordingly.

Design and User Experience:

 The cost of design and user experience can vary based on the requirements and expertise of the design team. Generally, high-quality design and user experience come at a cost, which can range from $10,000 to $50,000 or more, depending on the complexity and level of customization desired. 

Integration with Third-Party Services:

 The cost of integrating your app with external services like payment gateways or credit bureaus will depend on the complexity and number of integrations required. Integration costs can range from $5,000 to $20,000, depending on the scope of the integration. 

Security Measures: 

Implementing robust security measures is crucial for a mobile banking app. The cost of implementing security features such as encryption, two-factor authentication, and secure connections can vary based on the complexity and level of security required. Security measures usually range from $10,000 to $30,000. 

Testing and Quality Assurance: 

The cost of testing and quality assurance depends on the complexity of the app and the resources required for testing. Usually, testing and quality assurance can cost around 20% to 30% of the total development cost. For example, if the total development cost is estimated at $100,000, the testing and quality assurance cost may be around $20,000 to $30,000.

Maintenance and Updates: 

Ongoing maintenance and updates are necessary for mobile banking apps to stay up-to-date with evolving technologies, security threats, and user feedback. The cost of maintenance and updates can vary, but is generally estimated to be around 20% to 30% of the initial banking app development cost per year..

Please note that these cost estimates are approximate and can vary based on various factors such as the complexity of the app and specific requirements. It is advisable to consult with experts like QSS Technosoft in mobile app development to get a more accurate cost estimate tailored to your specific project.

Overall, the cost of building a mobile banking app like Monzo can vary significantly depending on the complexity, banking app type, and customization requirements. On average, the cost can range from $50,000 to $500,000 or more. A mobile banking app depends on its complexity, ranging from 3 months to 18 months or more.

Note: These cost ranges are approximate and can vary widely depending on app complexity, features, regulatory compliance, technology stack, and geographic location of the development team.

Read Also: What Does it Cost to Build a Business Networking App like LinkedIn?

Future Trends in Mobile Banking Apps

AI and Machine Learning

Artificial intelligence and machine learning are transforming mobile banking by offering personalized financial advice tailored to individual user behavior. These technologies analyze spending patterns, income, and financial goals to provide smart recommendations. This leads to improved financial decision-making and enhanced user engagement.

Biometric Authentication and Enhanced Security

Biometric authentication, such as fingerprint and facial recognition, is becoming the standard for securing mobile banking apps. These methods provide a higher level of security compared to traditional passwords, reducing fraud risks. Enhanced security features ensure user trust and compliance with regulatory requirements.

Integration with Digital Wallets

Mobile banking apps are increasingly integrating with digital wallets and various fintech platforms to offer seamless payment and financial management options. This integration allows users to manage multiple financial services within a single app. It also promotes convenience and broadens the scope of banking services.

Blockchain for Transparent and Secure Transactions

Blockchain technology is being adopted to ensure transparency and security in mobile banking transactions. Its decentralized ledger system reduces the risk of fraud and enhances transaction traceability. Blockchain adoption can revolutionize trust and efficiency in digital banking app operations.

List of best mobile banking apps

• Monzo: https://monzo.com/
• Revolut: https://www.revolut.com/
• N26: https://n26.com/
• Chime: https://www.chime.com/
• Varo: https://www.varomoney.com/

If you are looking to develop a mobile banking app like Monzo, QSS Technosoft is a trusted software development company that can assist you in turning your vision into reality. With their expertise in mobile app development and experience in the finance sector, they can help you build a secure and user-friendly mobile banking app tailored to your requirements.

Visit their website for more information: QSS Technosoft

How QSS Technosoft Can Help

• Expertise in building secure and scalable mobile banking apps: Delivering robust and reliable digital banking app solutions.
• Customized solutions tailored to client requirements: Crafting apps that meet unique business needs and goals.
• Focus on compliance, security, and seamless user experience: Ensuring apps adhere to regulations while providing smooth usability.

Conclusion

Building a mobile banking app like Monzo requires careful planning and investment. The cost involves various factors, including the development team, features, design, security measures, testing, and maintenance. While the cost can vary greatly, it is important to prioritize user experience, security, and compliance.

By partnering with a reliable software development company like QSS Technosoft, you can ensure that your mobile banking app is built to high standards and offers a seamless and secure banking experience to your customers.

Contact QSS Technosoft to build your custom mobile banking app today.

We are proud to mention that our work has been recognized by leading B2B reviews and research platforms like GoodFirms, Clutch, MirrorView, and many more.

FAQs Section

Q: What is the cost to build a mobile banking app like Monzo?

The cost to build a mobile banking app like Monzo typically ranges from $50,000 to $500,000 or more, depending on factors such as app complexity, features, platform choice, security requirements, and the development team's location and expertise.

Q: What are the key features of a mobile banking app?

Essential features include user registration and account setup, KYC verification, account management, transaction history, fund transfers and payments, push notifications, budgeting tools, and customer support. Advanced features might include AI-based recommendations, biometric authentication, multi-currency support, and card controls.

Q: How does app complexity affect development costs?

The more complex the app—with features like AI-driven insights, multi-currency support, biometric authentication, and integration with multiple third-party services—the higher the banking app development costs due to increased development time and expertise required.

Q: What platforms should I consider for my mobile banking app?

You can develop native apps for iOS and Android or choose a cross-platform solution that works on multiple platforms. Native apps often provide better performance and user experience, but may increase banking app development costs.

Q: How important is security in mobile banking app development?

Security is paramount. Features such as encryption, two-factor authentication, biometric logins, and compliance with regulatory standards protect sensitive user data and maintain customer trust, impacting both development time and costs.

Q: What ongoing costs should I expect after launching a banking app?

Ongoing costs include maintenance, regular updates to ensure compatibility and security, server hosting, and customer support. These costs typically amount to 20-30% of the initial development cost annually. The banking app plays a crucial role in maintaining customer trust and satisfaction by continuously evolving through these updates and support services.

Q: Can I reduce the cost to build a mobile banking app?

Yes, by prioritizing core features initially, choosing the right platform, hiring experienced developers, and planning carefully, you can manage development costs without compromising quality or security.

Q: Do I need a banking license to develop a mobile banking app?

If you plan to offer full banking services, obtaining a banking license is necessary to comply with legal and regulatory requirements. Alternatively, some apps operate under a money service business license or partner with licensed banks.

Q: How long does it take to develop a mobile banking app?

Development time varies by complex functionalities but typically ranges from 3 to 12 months or more, including stages such as research, design, development, testing, and deployment of the mobile app.

Q: What role does the technology stack play in banking app development?

The choice of technology stack affects development speed, app performance, scalability, and security. Selecting the right programming languages, frameworks, and backend technologies is crucial for a successful mobile banking application.