Banking Software Development: Cost, Features and Tech Stack

Think your bank’s application is just a simple tool for checking balances? Think again. Behind that smooth interface lies a powerful ecosystem of custom-built software. In today’s digital-first world, banking software development has become a business necessity.

With over 2.5 billion people now using mobile banking services worldwide, banks and fintech companies are in a race to deliver smarter digital solutions. This growing demand is pushing more institutions to partner with an expert banking software development company for more innovative ideas. 

But before diving in, let’s address the big question: How much does mobile banking software development cost? Well, it depends on a few factors—your app’s features, security standards, scalability needs, and more. On average, the cost of building banking software can range from $20,000 for a basic MVP to over $180,000 for a full-scale enterprise solution.

In this blog, we’ll break down everything you need to know:

• What features must modern banking software include
• The ideal tech stack for building scalable solutions
• A detailed breakdown of mobile banking software development costs
  

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We'll also discuss how to choose the right banking software development company to bring your vision to life. This guide will help you make informed, strategic decisions for your next banking software project.

So, let’s get started! 

Banking Software Market Stats and Analysis 

• The global banking software market was valued at $13.32 billion in 2024 and is projected to reach $22.94 billion by 2029, registering a robust CAGR of 12.3% from 2023 to 2032.

• Over 1.9 billion individuals worldwide now use mobile banking applications, making mobile banking one of the most rapidly adopted technologies in financial services.
• Among generational groups, 97% of millennials and 89% of all consumers rely on mobile banking apps for their financial needs.
• Popular Banking Apps and User Bases

• The Third-Party Banking Software market was valued at USD 31.08 billion in 2024 and is expected to reach USD 57.96 billion by 2032.

How Much Does Banking Software Development Cost? 

The cost of banking software development can vary widely, depending on the complexity, features, technology stack, and the region of your development team. If you're building a simple mobile banking software or a full-fledged digital banking ecosystem, understanding the investment involved is key to making informed decisions.

On the other hand, the hourly development rate can vary based on the region, experience, and skill level of the team. For example, hiring a bank software developer in Eastern Europe might cost you significantly less than hiring a team in North America.

So, once you finalize your requirements and select the right banking software development company, you can use this simple formula to estimate the budget:

On average, the mobile banking software development cost starts from $20,000 for a basic software, and can go up to $180,000 or more for an enterprise-grade platform with custom features, security layers, and regulatory compliance.

If you need specialized modules like banking CRM software development or are looking for custom software development for banks, a seasoned partner offering financial & banking software development services will ensure a tailored solution.

Also Read: How Much Does it Cost to Build a Mobile Banking App like Monzo?

Types of Banking Software Solutions  

Modern banks rely on a wide range of digital tools to stay competitive, secure, and customer-friendly. Understanding the different types of banking software development solutions can help you build the right tech stack.

• 1. Core Banking Solution 

This is the backbone of any financial institution. A core banking solution handles day-to-day banking operations like deposits, withdrawals, account management, and transaction processing across branches. It’s the heart of custom software development for banks.

Key Features:

• Centralized database for real-time processing
• Customer onboarding and KYC compliance
• Account management (savings, current, loans)
• Automated interest calculations
• Inter-branch transaction handling
• Regulatory reporting

• 2. Administrative Management Software 

Used for internal operations like HR, finance, compliance, and workflow automation, this type of software streamlines back-office functions. It plays a crucial role in banking & financial software development for large-scale businesses.

Key Features:

• Staff scheduling and HR management
• Payroll and tax compliance
• Internal communication and task tracking
• Regulatory document management
• Performance appraisal systems

• 3. Online Banking Software 

This allows customers to access banking services 24/7 via browsers. A strong online banking software development strategy includes bill payments, fund transfers, transaction history, and investment management, all from the comfort of a laptop.

Key Features:

• Secure login with multi-factor authentication
• Fund transfer and bill payment
• Account activity and transaction history
• Investment and loan access
• User notifications and email alerts

• 4. Customer Support Platform 

Includes live chat, AI chatbots, helpdesk integration, and omnichannel support. It's often integrated into larger banking CRM software development projects to enhance customer satisfaction and reduce support costs.

Key Features:

• Live chat and AI chatbot integration
• Ticketing system and email support
• Knowledge base and FAQs
• Omnichannel support (email, SMS, phone)
• CRM integration for customer history tracking

• 5. Mobile Banking Application 

Mobile apps are non-negotiable today. A well-executed mobile banking software development project ensures fast, secure, and intuitive access to financial services right from users' smartphones.

Key Features:

• Fingerprint or Face ID login
• Mobile check deposit
• Account transfers and bill pay
• Real-time balance updates
• Push notifications and location-based alerts

• 6. Banking CRM Software 

Banking CRM (Customer Relationship Management) software is designed to help banks and financial institutions manage customer interactions, enhance service quality, and build long-term customer relationships. It centralizes all customer data—transactions, preferences, communications—into one platform, enabling personalized experiences and efficient service delivery.

Key Features:

• 360-degree customer profile
• Lead and opportunity tracking
• Cross-sell and up-sell recommendations
• Campaign and communication management
• Integration with call centers and email

• 7. Risk Management Software 

Risk Management Software in banking is designed to identify, assess, monitor, and mitigate various types of risks, such as credit, market, operational, liquidity, and compliance risks, that financial institutions face on a daily basis. With increasing regulatory requirements and the complexity of financial products, banks need reliable and data-driven systems to stay resilient.

Key Features:

• Risk modeling and analytics
• Scenario planning and stress testing
• Regulatory compliance support
• Alerts and notification system
• Dashboard and real-time reporting

• 8. Anti-Money Laundering Solution 

An Anti-Money Laundering (AML) solution is a specialized banking software designed to detect and prevent illegal activities where criminals disguise illicit funds as legitimate income. Banks are among the most targeted institutions for money laundering due to the massive volume and complexity of transactions they handle. This type of banking software development is now considered a legal and strategic necessity for any financial institution.

Key Features:

• Transaction monitoring and flagging
• Suspicious Activity Reports (SARs)
• Watchlist screening
• KYC verification automation
• Audit trail generation

• 9. Loan Lending Software 

Loan Lending Software is a specialized digital solution that automates and streamlines the entire loan lifecycle. It’s widely used by banks, NBFCs, credit unions, and online lending platforms to reduce manual processing, enhance compliance, and deliver faster customer service.

One of the major benefits of banking software development is the ability to replace slow, paper-heavy loan processes.

Key Features:

• Online loan application and pre-approval
• Credit scoring and risk analysis
• Loan disbursal and EMI scheduling
• Document management
• Delinquency tracking and alerts

• 10. Fraud Detection Software 

Fraud Detection Software is an advanced security solution that helps banks and financial institutions identify, prevent, and respond to suspicious activities in real time. This software uses AI, machine learning, and data analytics to flag anomalies before they cause serious damage.

While the cost of banking software development may seem like a major investment upfront, the savings in customer trust protection make it one of the smartest long-term choices.

Key Features:

• Pattern recognition and anomaly detection
• Behavioral biometrics
• Real-time alerts and risk scoring
• AI-powered fraud detection models
• Integration with transaction monitoring systems

• 11. Data Analytics Software

Enables banks to analyze customer data, financial trends, and business performance for strategic decisions.

Key Features:

• Customer segmentation and behavior analysis
• Predictive analytics and trend forecasting
• Real-time dashboards and reporting
• KPI tracking and business insights
• Integration with third-party tools like Power BI or Tableau

Factors Which Influence Banking Software Development Cost 

If you're planning to build a modern banking app, one of the first questions you’ll have is — how much will it cost?. The cost of banking app development depends on several factors that can significantly shape the project’s budget. Let’s break it down in detail:

• 1.  Platform

Another important cost factor is the platform you're building for. Are you targeting Android users, iOS users, or both? The custom banking software development for Android and iOS platforms involves building separate versions of the application, which can double the development hours. Alternatively, you can opt for a cross-platform solution, but that might limit certain native features. 

• 2. UI/UX Design 

Your software design is about how easily your users can navigate it. A strong UI/UX design in mobile banking software development can make or break your app’s success. Custom designs that are created from scratch (instead of using pre-built templates) are more engaging and tailored to your audience. But they also require more time from designers and developers, which can raise costs. 

• 3. Wireframe 

When we talk about the benefits of banking software development for modern financial institutions, this stage plays a crucial role. A clear, well-planned wireframe reduces confusion later in the project and helps your team build exactly what you need. 

However, the more complex your app (think multiple user roles, dashboards, and transaction paths), the more time and effort it takes to map it out, which can increase the overall development cost.

• 4.  Features

The number and type of features you include will have a big impact on cost. A basic app with login, balance check, and fund transfer will be much cheaper than a full-fledged app with budgeting tools, investment options, and integrated CRM. 

However, the advantages of custom banking CRM software development are significant. So while more features mean more investment, they also unlock greater value for your business in the long run.

• 5. Technology Integration

If you're looking to build a cutting-edge application, you’ll likely want advanced features like AI-powered chatbots, facial recognition, or blockchain-based transaction logs. While these can dramatically improve the role of e-banking software development in improving user convenience, they also increase the complexity and cost of development. The more high-end the technology, the more specialized skills are needed.

• 6. Development Team Size 

When you choose to work with a professional team, you also need to consider its size. The advantages of hiring a banking software development company include getting a full-stack team — developers, project managers, QA experts, designers, and more. A bigger team usually means faster delivery and better results, but it also means higher cost. 

On the flip side, a smaller team might be more affordable but may take longer to complete the project and might not have the same depth of expertise.

• 7. Location of the Development Team 

Where your development team is based plays a huge role in the overall cost. For example, custom software development for banks in North America or Western Europe is typically more expensive due to higher hourly rates. 

Meanwhile, agencies in Eastern Europe or South Asia can offer the same quality at more affordable prices. Still, it’s important to choose a bank software developer who not only fits your budget but also understands your industry and communicates effectively.

• 8. Software Maintenance 

Launching the application is only half the journey. Real success comes from ongoing performance and stability. With online banking software development, you’ll need continuous maintenance, from fixing bugs and updating features to tightening security protocols. These ongoing tasks require dedicated resources and add to the total cost over time.

Other Factors Affecting the Cost of Building Banking Software

Going ahead in the next section, let’s see some of the most prominent features to add to your banking software. 

Technology Stack for Digital Banking Software Development

The table below outlines the standard tech stacks and tools used by our banking software development team to deliver high-performing, scalable, and secure digital solutions. 

TECH STACK

TOOLS

Must-Have Features to Include in a Mobile Banking Software 

As more people manage their finances on the go, mobile banking software has become an essential tools for banks looking to stay competitive. Let’s explore the must-have features of mobile banking software development, along with how they contribute to customer satisfaction, security, and digital transformation.

• 1. Application access 

The very first impression users have of your software is how easily and securely they can log in. With the growing importance of mobile banking software development, features like biometric login (fingerprint or facial recognition), multi-factor authentication, and PIN-based access are now standard. These options not only enhance user experience but also strengthen security from the first touchpoint.

• 2. Account information 

Users expect instant access to their account details — from current balances to recent transactions. Custom banking software development allows you to design real-time dashboards that reflect updated data 24/7. This feature is especially valuable for users managing multiple accounts or needing to monitor spending habits.

• 3. Payment and transfer 

Seamless payment and transfer options are the core of e-banking software solutions like Revolut. Your app should support inter-bank transfers, UPI or QR payments, scheduled payments, and recurring bill options. The easier it is for users to send and receive money, the more they'll rely on your digital platform over traditional methods.

• 4. Transactions history 

A clear and searchable transaction history is a must. It helps users track spending, download monthly statements, or even flag suspicious activity. One of the benefits of banking software solutions for modern financial institutions is offering intelligent sorting and categorization of transactions, giving users insights into their financial behavior.

• 5. Push Notifications & Alerts 

Notifications keep users engaged and informed. Whether it’s a low balance alert, bill reminder, or a suspicious login attempt, mobile banking software development must include customizable push alerts. These real-time updates not only improve transparency but also help build user trust.

• 6. Bank and ATM locations 

With custom software development for small banks, integrating a GPS-powered locator feature can help users find nearby branches and ATMs. This is particularly useful for travelers or new customers. Some apps even allow filtering based on services like deposit machines or 24/7 ATM availability.

• 7. In-app chat 

Today’s users don’t want to wait on hold for support. With custom banking CRM software development, you can integrate in-app chat, either with a live agent or an AI chatbot. This not only speeds up problem resolution but also improves overall customer satisfaction and retention.

• 8. ATM connectivity and Card Services 

A robust mobile app should connect seamlessly with ATM networks, allowing users to manage their cards — such as activating or blocking them, setting limits, or locating cardless withdrawal ATMs. These features are essential components of online banking software development that improve flexibility and security.

• 9. Voice commands Integration 

As AI becomes more accessible, features like voice-based navigation are growing in popularity. Including voice commands in your app enhances accessibility and convenience — an excellent example of how banking & financial software development is evolving with user expectations.

• 10. AI Integration 

Integrating AI can elevate your banking app from a utility to a financial advisor. From detecting fraud patterns to offering personalized savings advice, AI-powered features in banking CRM software development can provide intelligent insights that users genuinely appreciate.

• 11. Robust security 

Security is non-negotiable when it comes to finance. Features like end-to-end encryption, biometric authentication, real-time fraud detection, and secure session management are critical. The advantages of custom banking software development include being able to build these security layers from the ground up, tailored specifically to your app’s infrastructure.

Now it’s time to understand the process of building a banking app that stands the test of time. 

How to create a mobile banking Software? 

Building a mobile banking app is about delivering a modern financial experience that your customers can rely on every day. Here's a practical guide on how to go from concept to a fully functioning app using custom banking software development services.

• Step 1. Market Analysis and Data Gathering 

Every great application starts with great research. Begin by understanding your target users, their pain points, and what features they expect from a digital banking solution. Study competitor apps to identify gaps and opportunities. 

During this stage, banking & financial software development companies usually conduct user interviews, run surveys, and collect data on current industry trends, including AI, blockchain, and personalized banking. This ensures your software is future-ready.

• Step 2. Deciding the features and tech stock 

Once your research is in place, define the core features of your software. Will it support instant payments, budgeting tools, or AI-driven insights? 

Choosing the right tech stack is equally important. A robust backend, secure cloud infrastructure, and scalable database architecture are key to successful banking software development services. Your tech choices must align with the software performance and security needs.

• Step 3. Implementing UI/UX design 

Great banking software is designed around the user. With mobile banking, simplicity and clarity go a long way. A clutter-free layout, intuitive navigation, and visually appealing dashboards are essential for user satisfaction.

This is where custom software development for banks really shines, allowing you to design experiences tailored to your specific audience. Prototypes and wireframes are created first, followed by high-fidelity mockups that show exactly how the app will look and feel.

• Step 4. Developing the banking mobile app 

Here’s where everything comes together. Your bank software developers now begin writing the actual code for the app, building both the frontend (what users see) and backend (the logic behind the scenes). Key components like user authentication, encrypted transactions, and third-party API integrations are developed during this stage.

If you're working with a banking software development company, agile methodology is often preferred to break the project into smaller, manageable sprints. This allows for regular feedback and improvements along the way.

• Step 5. App Deployment 

Once your software is functional and stable, it's time to launch! But before you hit “publish”, you need to ensure compliance with all financial regulations, security standards (like PCI DSS), and data protection laws in your region.

Most professional teams offering financial & banking software development services will handle the deployment process, including preparing launch assets, setting up analytics tools, and ensuring the app passes store approval checks.

• Step 6. Testing and maintaining the app

After deployment, your job isn’t over. It’s just beginning. Mobile banking software requires continuous testing. Routine updates, new feature rollouts, and security patches are all part of the ongoing mobile banking software development process.

Maintenance is critical to avoid downtime and build user trust. This is why choosing a reliable partner for custom banking software development is so important — someone who offers long-term support and understands the ever-evolving tech and regulatory landscape.

Also Read: BNPL App Development like Klarna or Tabby 

Challenges to Overcome in Banking Software Development 

Building secure, scalable, and user-friendly banking software is no easy task. Several roadblocks can slow you down or compromise quality. Let’s explore the most common challenges and how to overcome them with the right approach to custom banking software development:

• 1. Data Security 

Perhaps the most critical concern in any banking software is protecting sensitive user information. Banking software deals with personal data, financial transactions, account numbers, and identity details, making them prime targets for cyberattacks. 

Solution:

If you're investing in financial and banking software development services, prioritize security protocols such as SSL, TLS, and secure coding practices. Data security isn't optional — it’s the foundation of customer trust.

• 2. Regulatory Compliance

Banking is one of the most heavily regulated industries in the world. Your software must comply with national and international standards like GDPR, PCI DSS, KYC (Know Your Customer), AML (Anti-Money Laundering), and other regional laws.

Solution:

When working with a banking software development company, make sure they have experience navigating financial regulations. Ignoring compliance can lead to legal penalties, reputational damage, or both.

• 3. Finding a Skilled Development Partner 

One of the hidden challenges is finding a reliable and experienced team that truly understands the banking domain. Not every app development agency can handle the complexities of custom software development for banks, especially when it comes to handling secure data flow, integrating third-party APIs, or managing complex backend infrastructure.

Solution:

Look for a bank software developer like Apptunix who understands the financial ecosystem, user behavior, and compliance needs. Without a skilled team, even the best ideas can fail in execution.

• 4. Scalability

As your user base grows, your system needs to grow with it. One of the major hurdles in e-banking software development is planning for future traffic, features, and transaction volumes. If your backend isn't built for scale, performance issues will emerge, from slow transaction processing to app crashes.

Solution: 

Scalability is a core benefit of custom banking software development, especially when the right cloud technologies, database solutions, and microservices architecture are used.

Also Read: How Much Does it Cost to Build a Banking App like Mashreq?

Banking Software Development Trends to Watch in 2025

The banking industry is going through a major tech evolution. Here are the top banking software development trends that will shape 2025. 

• 1. Digital Banking

In 2025, traditional banks are fast-tracking digital transformation to match the agility of neobanks and fintech startups. From opening accounts to managing loans, everything is moving online.

That’s why demand for online banking software development is at an all-time high.  According to a survey, 40% of users are willing to pay for personalized digital banking services, indicating demand for tailored experiences and features. Banks that fail to deliver will fall behind.

• 2. Low-Code Development

Banks need to move fast, and low-code/no-code platforms are helping them do just that. With low-code, developers can build applications using visual interfaces and pre-built templates, drastically reducing development time.

Expect more banking software development companies to integrate low-code approaches alongside custom solutions in 2025.

• 3. Artificial Intelligence (AI) and Machine Learning (ML)

The global AI in banking market is valued at approximately USD 34.58 billion in 2025 and is projected to reach around USD 379.41 billion by 2034. In 2025, AI will be deeply integrated into fraud detection, credit scoring, personalized financial planning, and even customer onboarding.

Through custom software development for banks, institutions are using AI to analyze user behavior, automate workflows, and reduce operational costs. And with ML models continuously learning from real-time data, banking apps are becoming smarter with every transaction.

• 4. Hyperautomation

Hyperautomation is about creating intelligent workflows that connect AI, RPA, and data analytics. Banks are using it to automate everything from compliance checks to loan processing.

For companies seeking financial & banking software development services, hyperautomation is becoming a must-have, especially in areas like backend processing, document verification, and real-time decision-making.

• 5. Robotic Process Automation (RPA)

RPA is a crucial part of the hyperautomation trend. It’s helping banks handle routine tasks like data entry, KYC document processing, and transaction reconciliation — all without human intervention.

By integrating RPA into banking CRM software development, organizations can improve efficiency, lower costs, and reduce manual errors. It’s a game-changer for customer support and back-office operations.

• 6. Blockchain Technology

The World Economic Forum estimates that 10% of global GDP will be stored on blockchain platforms by 2027. Meanwhile, banks like JP Morgan and HSBC are already using blockchain to streamline payments and settlements.

For businesses investing in e-banking software development, blockchain offers tamper-proof transaction records, reduced fraud, and faster settlements. With custom banking software, you can build smart contracts for secure lending, insurance, or cross-border trade.

Partner with Apptunix: A Trusted Banking Software Development Company

Building a secure, scalable, and future-ready banking solution requires the right technology partner. That’s where Apptunix stands out.

With 11+ years of experience in delivering cutting-edge banking software development services, we bring together a talented team of developers, designers, and domain experts who understand the evolving needs of the financial sector. 

Our diverse portfolio includes everything from custom banking CRM software development to complex e-banking and mobile banking solutions, trusted by a global clientele across fintech, traditional banking, and digital finance.

We leverage modern technologies like AI, ML, blockchain, RPA, and cloud-native frameworks to build future-proof banking software that performs and scales.

Partner with Apptunix and let’s turn your vision into a reality — securely, efficiently, and at scale.