Developing a Neobank App Like SoFi: Cost and Factors

The world is rapidly moving from brick-and-mortar financial institutions to digital-first solutions. As digital technologies are growing, customers get more convenient and quick ways to perform financial tasks. The best example is Neobank apps like SoFi. A Neobank app allows its users to perform banking tasks from opening an account to withdrawing money. 

Users of the Neobank app can do these banking tasks without physically visiting the bank. With these benefits of Neobank apps, the users of these apps are growing in millions that open a new business opportunity for entrepreneurs.

However, when it comes to developing a Neobank like SoFi, entrepreneurs must consider all the aspects that could affect the decision. One of those factors include the cost to develop a Neobank app like SoFi. It is pivotal to understand the potential cost to make the right decision for your investment. 

But the answer to the question of “how much does it cost to develop a Neobank like SoFi” isn’t straightforward and it is rather conditional. It depends on dozens of factors including project’s complexity, features, team size, and more. We are going to discuss this question and try to find an answer for you. 

Keep reading to get the best information to make the right decision. 

Factors That Affect the Cost of Building a Neobank App Like SoFi

The following are the different factors that affect the cost to build a Neobank app like SoFi. 

Complexity and Functionality

The first and foremost thing that impacts the cost of creating a Neobank app is the overall complexity and number of features. There are many types of features that an app like Neobank requires such as bill payments, investment options, mobile cheque deposits, etc. 

The application you aim to develop may require common features and functionalities, or there might be a requirement to implement custom features. Depending on your feature requirement, you could see a rise in your Neobank app development cost. 

On the other hand, the app’s complexity also plays a crucial role in the cost of developing a Neobank app. Just think, if your app development project demands only a few easy features, it will be a simple app. So, the cost will be comparatively lower.

However, if you need to build an app with many features that can increase overall complexity, the app is going to cost you more. Because it will require more resources and development time. So, it will definitely cost you more. 

UI/UX Design

Well, UI/UX is a part of Neobank app development and it can significantly affect its cost. You need to create a visually appealing user interface that will encourage users to perform actions and help you retain them. 

An app like SoFi excels in UI/UX design. So, you need to focus on this aspect to develop a similar application. You need to invest heavily in UI UX design services to ensure a seamless user experience like SoFi.

A better user experience will enhance the app’s usability resulting in the end-users completing transactions frictionlessly. However, good user experience and user interface design require extensive sessions of brainstorming, planning, and designing skills.

Hence, you need to invest more resources that will add to your Neobank app development price. Moreover, this price will be worth it because an enhanced user experience will translate into increased revenues. 

Technology Stack

Another important factor in Neobank app development cost is the technology stack you choose. You need the latest technologies that will offer enhanced performance, scalability, and maintainability. 

However, when it comes to choosing a tech stack, you will have different options. In these options some might be paid or some might be open-source. You can also choose a mix of them. Moreover, the cost will differ based on your choice. 

For example, choosing a platform like WordPress will cost you nothing because it’s open-source and available for free. However, choosing a platform like Shopify will cost you according to your plan.

Similarly, in developing your Neobank mobile app, you can have varied costs depending on the technologies you choose to develop it. 

Third-party Integration

The next important factor that impacts your Neobank app development cost is third-party integration. It includes third-party services that you integrate with your application to offer additional functionalities. 

For example, integrating a payment gateway will help you with payment features in your application. Similarly, there are many other third-party services that are integrated via APIs. While these services offer additional functionality, they could also be charging some fees. 

Apart from charges paid to third-party services, the developer may also charge more for integrating these third-party services. Hence, the cost of developing your Neobank app also depends on third-party services. 

To develop an app like SoFi, you will need these third-party services. So, you must consider this factor when calculating the cost of developing your Neobank mobile app. 

Hosting

Well, your mobile app is ready but it cannot do anything because there is no data. So, it needs a way to fetch information and present it to the users. This is where you need hosting to store and manage your application’s data. 

It is also an integral part of your Neobank application cost. When it comes to hosting data, there are two options – on-premises and the cloud. Having an on-premises infrastructure to store and manage application data can be quite expensive. 

Therefore, businesses usually choose cloud services or go with a hybrid approach with private and public clouds. It can help reduce not just the operating costs but also the maintenance costs. So, you can get computing resources from cloud providers and store your data. 

You can choose from popular cloud platforms like Amazon AWS, Microsoft Azure, and Google Cloud Platform to store and manage data. 

Compliance Requirement

Another important factor that affects the cost of developing an app like Neobank is various industry standards and regulatory compliance. Well, it means you need the necessary permits and adhere to compliance. This can include legal and regulatory expenses that will add up to the overall cost of creating the app.

Plus, you must also implement features and interface design according to these compliances. So, you may have to take a different approach than you have decided which can increase the cost as you have to put in extra development effort. GDPR and PCI DSS are two examples of such compliances.

Cost to Develop a Neobank App Based On the Development Process

The cost to build a Neobank app like SoFi depends on the kinds of features you choose for it, its complexity, and other factors. Moreover, the cost can be divided based on different stages of development as given below. 

Research and Planning

This is the first phase of the app development process. Research and planning are essential processes in app development that help build a business model like SoFi. At this stage, you need to do a competitor analysis, target audience research, and gather information on legal requirements.

Moreover, this stage aims to help you build a roadmap to develop the application. Plus, you can determine the best features, UI, and other aspects of your app. It will cost around $5,000 – $20,000.

UI/UX Design

Creating a user-friendly, engaging, and intuitive user interface is pivotal for a successful Neobank application. Hence, you must pay huge attention to UI/UX design. It is a process of creating the user interface and user experience for your mobile application. 

The UI UX design cost includes the expenses of prototyping, wireframing, and finished designs for your mobile app. Usually, the cost of UI/UX design ranges between $10,000 – $50,000.

Development

Development is the phase where your application is coded to offer the desired appearance and functionality. It includes the following tasks. 

• Front-end Development

After the UI/UX design is ready, the next phase involves creating a frontend which is the user interface for your application. Frontend must be easy to use, responsive, and quick to help users interact with your application frictionlessly.

It is created as per the UI/UX design and must be developed with the latest standards and trends. The cost of front-end development could be anywhere between $25,000 – $150,000. 

• Backend Development

While the front end forms the user side of your app, the back end is where your data is stored and managed. Plus, it also involves the business logic of your application. It entails the server, database, and other technologies that make your app functional.

The cost of backend development is also included in the total cost of mobile app development. So, it is one of the key factors in determining the overall cost of Neobank app development. Backend development cost typically falls in the range of $50,000 – $250,000. 

• Third-party Integration

Apps like Neobank require many additional features that can only be implemented by integrating third-party APIs and services. Hence, third-party integration is also a crucial part of app development. Often these third-party integrations add more to your app development cost. 

Third-party integration includes two types of costs: developer costs and operational costs. You will require extra developer hours for third-party integration than a basic app. Plus, these third-party services may be available at certain fees. 

The cost of third-party integration is between $5,000 – $50,000.

Security Compliances

Your cost to develop a Neobank may also include expenses related to compliances and regulations. If you want to build a secure and compliant mobile application for your business, you need to invest in strong encryption, compliance checks, secure authentication, and more. These functionalities could increase the overall cost of developing a Neobank application. 

This aspect can cost around $20,000 – $100,000. 

Testing and Quality Assurance

Quality Assurance and Testing is an essential process in app development that evaluates apps to perform functional and non-functional testing. It is pivotal to ensure the quality of your app. QA and testing check a mobile app for potential quality issues that can affect the functionality, security, performance, and other aspect. 

This is also an important factor in app development costs. So, the cost of developing a Neobank application will be more due to this factor. All in all, testing and quality assurance will add around $10,000 – $40,000 to the cost of developing a Neobank app like SoFi. 

Launch and Marketing 

The next phase in developing an app like SoFi is launch and marketing. Launching an app means deploying it on the relevant platform like the App Store or Play Store. Plus, marketing means spreading the word about your app to get the desired traction and create a user base. 

Platforms like Apple App Store and Google Play Store have different charging methods and rates. Depending on the platform fee patterns, your cost can rise. Plus, marketing and promotion an essential activities that incur some expenses. 

What are the Key Features of a Neobank App like SoFi?

Investment and Trading Options

With this feature, users can easily make investments in ETFs, cryptocurrencies, stocks, and more. The app should offer a list of options for investments along with various statistics and data that can help them an informed decision.

Mortgages 

It offers a simple and convenient way for users to apply for refinancing services or loans. The app should offer various loan options as well as personalized services from consultations. 

Real-Time Notifications

The next important feature of Neobank applications like SoFi is real-time push notifications. They are crucial to keep users engaged with your application, Plus, they provide alerts for new offers, transactions, updates, and personalized deals.

Budgeting Tools

You must integrate budgeting and financial tools to make your app more attractive. These tools will help the users plan their budget, track expenses, and do other financial planning. 

Voice-enabled Assistant 

You can take your app to the next level with chatbot/voice-assistant integration that will help the users get answers to their queries without any hassle. They can use these tools to get updates and information regarding their accounts or finances. 

Multi-Currency Support

Multi-currency support is also a vital feature of a Neobank mobile application like SoFi. It allows users to make transactions or do financial activities in any currency of their choice. 

Payment Options

With this feature, users can choose from a list of different payment options to make transactions. It offers more convenient payment options to users.

In a Nutshell

Today, fintech is growing at a rapid pace with more businesses investing in applications and web portals that offer fintech software development services. Neobank apps are one the key solutions in this domain. 

Developing a Neobank app like SoFi requires a lot of research and planning. Understanding the cost of creating such an app is one of the most important things you should know. 

As we have discussed in this article, the cost to develop a Neobank app like SoFi depends on multiple factors and varies as per project needs. Thus, the final estimates for cost fluctuate as the requirements for the project changes. 

Nevertheless, the estimated cost of developing a Neobank like SoFi is expected to fall in the range of $45,000 – $250,000. It can even cross the upper limit if the project is aimed for a big enterprise that wants to build an app to target a wider audience base, particularly on a global scale.