How Much Does It Cost to Build an App Like N26

You must have heard banks saying they need big technology budgets for digital success.  

Well, the ground picture is – despite hefty investments, they’re still struggling! Take Germany, curating at 4th rank globally with a bank cost-to-income of 88.62% compared to the Netherlands’ 61.51% in 2021. 

Here’s the scoop – The global average bank cost-to-income ratio is 54.8%. 

The reason behind this difference can be the slow adoption of the technology or not using the right technology. Take N26, (an epitome in neobanking) for example, revolutionizing the banking landscape. 

How Much Does It Cost To Create An App Like N26? 

Often, fintech app development company costs in creating a banking app vary in the range of $20,000 to $180,000, depending on features, complexity, technology, and security. 

To your surprise, N26 is a digital-only bank shining as one of Forbes World’s Best Banks 2022. The irony? The noe-bank is from Germany. 

Though banks seem occupied arguing for the technology budget, neo-banks like N26 are getting ahead of the curve. The entire business model of N26 depends on mobile technology. 

But, now the question arises – 

Do Banks Having IT Systems Also Need to Embrace Mobile Technology? 

After studying neo-banking apps like N26, Revolut, and NuBank, it’s evident that it’s decades-old legacy IT applications that accumulate technical debts in banks. And this debt poses challenges in digital banking transformation, with repercussions on the bank’s future. 

So, if you’re among those who think, “Why not develop a new bank that uses top-notch technologies to offer digital-only banking services?” – this piece of reading is just for you. 

We’ve created this handpicked guide debunking the cost related to fintech mobile app development. It’s crafted to help your bank’s digital transformation budget planning, facilitating you to create an app similar to N26 and free your financial institution from technical debt once and for all. 

Speaking of N26, let’s spill the beans behind its business model on the journey to becoming a bank. But before that, let’s explore what factors influence the cost of creating a neo-banking app that’ll help you plan your budget efficiently.

Cost to Build an App Like N26 Based on Complexity

When you calculate the cost to build an app like N26, the biggest factor is the complexity level of the product. A neobank app can be developed as a simple MVP or a fully scalable digital banking ecosystem similar to N26. Below is a clear breakdown of how complexity affects pricing, timeline, and features.

1 Basic Neobank App (MVP Version)

Estimated Cost: $10,000 – $20,000
Timeline: 3–4 months
Best For: Startups testing the market before scaling

What this version includes:

• Simple user onboarding
• KYC verification via third-party APIs
• Basic account dashboard
• Transaction history
• Virtual card support
• Basic budgeting tools
• Push notifications
• Standard security (encryption, OTP, 2FA)

Why it’s cheaper: The app uses pre-built fintech modules and limited UI screens, reducing the overall N26 app development cost.

2. Mid-Complexity App (Advanced Neobank Features)

Estimated Cost: $20,000 – $80,000
Timeline: 5–8 months
Best For: Businesses ready to compete directly with popular neobanks

What this version includes:

• Advanced onboarding with enhanced KYC/AML
• Physical + virtual card management
• International transfers
• Expense categorization
• Multi-currency support
• Integration with payment gateways
• AI-powered fraud alerts
• Customer support chat
• Advanced security protocols + biometric login

Why it costs more: At this stage, you’re building a feature-rich neobank app, similar to N26, requiring more backend workflows, compliance checks, and security layers.

3. High-Complexity Neobank App (Full N26-Level Platform)

Estimated Cost: $80,000 – $180,000+
Timeline: 8–12 months
Best For: Companies building a global, fully regulated digital bank

What this version includes:

• Complete digital banking ecosystem
• Real-time transaction analytics
• Automated savings + investment tools
• Lending/credit modules
• Crypto wallet or digital asset support
• Risk scoring models
• In-app customer support + IVR
• Dedicated admin dashboard
• Custom banking-grade security
• Compliance automation (KYC/AML, GDPR, PSD2)
• Native iOS + Android development with high-end UI

Why it’s the most expensive:

A full N26-style app requires:

• Scalable cloud infrastructure
• Custom-built banking modules
• Regulatory alignment
• Advanced AI/ML features
• Third-party audits and testing

This complexity significantly increases the neobank app development cost.

Also Read: AI in Fintech Apps: Use Cases, Challenges & Getting Started

What Prominent Features Drive the Mobile Banking App Development Cost? 

Banking app development costs depend significantly on inevitable factors like features, security measures, customer experience, regulatory compliance, and tech stack. Let’s break it down: 

• App Type – It’s primarily about the complexity. For example, developing a simple banking app compared to investment tools, affects development effort and costs.  
• App Platforms – Picking whether to go for iOS or Android is a crucial decision. Though developing and adhering to native apps may seem expensive at square one, but is a recommended choice for the fintech world because of the voluminous data and customizable interface. 

Opting for a cross-platform framework also makes it a viable choice for a basic banking mobile app.

• Features and Functionalities

  To integrate more features means more coding and testing, eventually adding on the development cost as a whole.  

• UI/UX Design

  Crafting an intuitive interface requires design expertise, piling up in the development cost.  

• Tech-stack Integration

   Establishing technologies like AI and ML, Blockchain and many more stacks require skilled resources, impacting the development costs.    

• Data Management

    Protecting customer data comes with infrastructure and maintenance costs. 

• Regulatory Compliance

    Catering banking regulations include comprehensive development and documentation processes, increasing the costs.  

• Security Measures

  Establishing encryption and authentication adds to the development time and resources, leading to an increased cost. 

How a Neo-Banking App like N26 Makes Money

According to N26, 2023 was the year of growth witnessing an increase of 30% in its revenue eclipsing the milestone of 300 million. 

You must be wondering how N26 achieved it. What is its business model? 

N26 Business Model 

N26 is a trailblazer, revolutionizing conventional banking ways with its mobile-first approach, delivering a seamless banking experience right at your fingertips. In simple terms, using cutting-edge technology, N26 offers an exquisite array of transparent and comprehensive services through its mobile banking platform. 

Let’s see how! 

On signing up, users can easily create a free online bank account in merely 8 minutes, a process that’s hassle-free as well as quick. From the security perspective, the N26 app is armored with security features like 3D security, ensuring customers their accounts are well-protected. 

“N26’s value proposition centers around convenience, security, and customer-centric features, setting a high standard in an industry that’s often seen as traditional and rigid.” 

Here’s a quick rundown of how N26 is different from conventional banking apps.

In addition, N26 provides valuable insights into spending patterns, allowing users to better manage their finances. The best is yet to come -its bill-splitting functionality, which makes it a lot easier to divide expenses among friends and family.  

This app also envelops robust budgeting tools helping users stay on top of their financial goals. Moreover, N26 circumscribes everything from insurance coverage to global card payments, curating itself as a top pick for international travelers. 

Feature Analysis:

N26 boasts a plethora of features designed to enhance the banking experience, starting with the provision of a free bank account and dynamic fund protection measures to real-time spending insights and hassle-free mobile transfers. Furthermore, it offers an exquisite range of services that prioritize transparency, ease, and efficiency, effectively bridging the gap between traditional banking practices and the evolving needs of modern customers. 

But not to skip, especially in banking app development, features play a pivotal role in determining costs. Therefore, it’s crucial to carefully consider and prioritize the features you wish to incorporate into your banking app. Not only do these features influence the customer journey and experience, but they are also directly proportional to the total app development costs.

Subscription Models:

N26 app earns money through its services, by offering several subscription plans tailored to user’s preferences: 

1. Standard Plan:

This free plan provides essential banking services, including up to 3 withdrawals, spending insights, and account security. However, customers with the free plan only receive a virtual debit card.

2. N26 Smart Plan:

Priced at €4.9/month, this plan offers additional features such as Spaces subaccounts, extra withdrawals, and partner offers. Spaces sub-accounts allow customers to round up every card transaction to the nearest euro, saving the difference in the space. Users can also choose the color of their physical debit card with this plan.

3. N26 You Plan:

For €9.9/month, users get access to travel, mobility, and winter sports insurance, in addition to all the benefits of the Smart plan.

4. N26 Metal Plan:

This premium plan is priced at €16.9/month and includes perks like car rental, phone insurance, extra withdrawals, and a dedicated support line, along with a sleek metal card.

In addition to subscription plans, N26 has several other revenue streams:

• Overdrafts and Loans

  N26 offers overdrafts of up to €10,000, charging 8.9% interest on the amount borrowed. It also provides loans of up to €25,000 for various purposes, including education and startups, with interest rates starting from 1.99%.

• Investing Deposits

  Like traditional banks, N26 invests customers’ cash deposits in the financial market or provides loans, earning interest on these investments.

In essence, N26 diversifies its revenue streams and offers a range of value-added services,  ensuring that it maximizes returns on its fintech mobile app development investment simultaneously offering customers a modern and convenient banking experience.

Solutions to Address the Challenges of Fintech App Development 

• Security and Privacy

Since the banking app contains confidential user data, it’s of foremost importance to establish a secure app that safeguards user data requiring considerable attention and investment. 

Therefore, integrating dynamic security protocols from the outset, like encryption, two-factor authentication, and biometrics is a must. Notably, prioritizing security investments reduces the risk of expensive breaches damaging both finances and reputation. 

• Compliance 

Navigating the compliance regulations seems a big challenge and an expensive affair, especially in Germany and the Netherlands.

So, it’s recommended to work closely with legal experts to ensure compliance with GDPR, AML, and PSD2 regulations. Remember, proactively addressing compliance will help minimize the probability of costly fines. 

• Complexity 

Complexity relates to the features and functionalities, number of screens, and technical intricacies defining the level of the app’s complexity. In simple terms, the higher the level of complexity, the costlier the fintech app development.

Here’s an example to understand it better:

• Scalability 

It’s crucial to ensure that your app accommodates scalability in a hassle-free manner.

So, embracing scalable cloud infrastructure proves to be an ideal solution for your app to accommodate growth without incurring any hidden costs. Plus, this approach makes sure that your app adjusts the resources as required, skipping performance issues while keeping expenses in control. 

• Tech-Stack

Picking the right technology is inevitable.

Wondering why? Because this decision balances functionality and cost. 

Therefore, it’s important to choose the tech stack wisely, considering everything from platform to programming language if you are going for a native app development. But, if your app is not data-driven, opting for a cross-platform development approach also helps save on your development time and expenses.   

• Prudent Cost Management 

Without any doubt, weighing feature development and costs seems a daunting task.

Hence, prioritize features that streamline with core user needs and industry requirements. Plus,  skip feature overload as it increases the development time and cost without proportional value. 

• Development Partner Location 

Your partner fintech app development company location significantly impacts your project’s development cost. After all, developer’s rates vary depending on the geographical locations, and hiring a developer’s team from a region with high labor costs, eventually increases the overall cost.  

To address this, the tried and tested approach is to consider outsourcing development to regions with lower living costs and competitive developer rates without compromising the quality parameter.  This approach helps you save on costs while ensuring the right expertise and experience needed for your project. 

Finally… From Disruptors to World Leaders 

Neobanking witnessed a significant transformation in the banking sector’s landscape, with endless potential to outpace traditional banks. 

This underlines the imperative for a successful fintech venture to embrace fintech app development. The best time to start is now, and Apptunix stands ready to turn your thought into reality. With the right investment at the right time in the mobile landscape, your bank leverages a first-mover advantage in this digital era. 

However, picking the right fintech app development company is paramount to skip the queue of mistakes. Entrust your banking app project to us at Apptunix, where our seasoned and tech-savvy developers are experienced in creating bespoke digital solutions, ensuring confidentiality and excellence at every step. 

Start small to take the big step and seize the future of banking with Apptunix by your side.