The exact costs for developing an on-demand delivery app would depend on what kind of features you have, who develops it, and all but I’ll outline a general idea.
I’ve worked with software development companies and independent developers in the past and what I can tell you is the prices can fluctuate depending on who you hire.
First of all, you can go about this in two ways. You can build it from scratch, like you can code it from the ground-up. Or you can just use a clone app.
The first one is the obvious one, but it will be a bit more expensive. Typically, if you want to build from scratch, you’ll have to spend around $10,000 to $15,000, more or less to get the finished product. Because app development is not simple. Another thing to consider is the time because this is not a job for one person. Well, technically a single person could do it but it would take more time. Like, a lot more time. You’ll have to hire different people for Development, Testing, and UI/UX Design. The design might cost you additional money because that also is a big task.
Even if you approach a mobile app development company, you’ll be looking at roughly the same amount of money. Of course, this would change depending on where you live but since we live in the era of the internet, don’t think geography would hold you back.
The cost-effective way to go about this in my opinion is to use a clone app script. Like if you want an on-demand food delivery app you can use an uber eats clone app. These apps have all the features already built it and all you would need to do is customize the script for your business. Well, the company you buy it from would do it for you actually. They would typically charge you by the hour for the customization work. With a clone script, you can get a finished product for around $5,000 to $8,000, give or take.
Cost to Develop an App Like Food Panda In India:
If you trying to make an online food ordering and delivery app like uber or food panda, then you’re looking at a minimum of 6 months of development. From some personal experience in working with software development companies, I’d say that a good deal for a from-the-scratch build would be around $15000 on average.
If you ask me, the best idea would be to use an ubereats clone script. These clone scripts have all the features you need for the platform already built-in, and all you have to do is customize the script according to your requirements. When I say you need to customize it, what I mean is that you can tell your requirements to the company you hire and they will do it for you.
This way, you can get a fully working uber eats-like app without spending a ton of money and a lot of time. The time might vary depending on the kind of customization you need but from a money point of view, you’ll be able to save up on a lot.
Also, it would be a great idea to make sure that the company you hire helps you out with getting the apps on the app stores for both Android and iOS. Hope this helps.
As the fintech industry grows, it is possible that more industries verticals will overlap with fintech companies and we’ll also see some partnerships happening. As a result, it will be very important for fintechs to adapt and comply with regulations for several other industries. This decentralization will make it difficult for fintechs to identify relevant regulations. I recommend the following 6 practices for fintechs:
1. Stay abreast of Digital-only Banking
Banks are turning into digital-only banking institutions and the regulatory authorities are still trying to figure out how to identify and enforce new compliances in this changing banking environment. The online-only fintechs will be required to develop their customer interaction plan as well as the security policy.
2. Have an AML policy
Similar to the traditional banking infrastructure, the fintech companies should incorporate anti-money laundering (AML) into their security procedures. Even if you are considering merger or acquisition of an existing fintech company, do check if their AML checks are in place. Especially the digital currency is very vulnerable to money laundering as it allows anonymous cross-border transactions. To address digital currency AML, some nations even track digital wallet addresses and device identifiers. The technological implementation can help fintechs in keeping up with the AML compliances. Blockchainand Machine Learning are the two major technologies that are helping fintechs fight issues like money laundering.
3. Build Consumer Awareness
In the last few years the Consumer Financial Protection Bureau (CFPB) has shifted their attention to fintechs. Fintech companies, especially leanders, should ensure that their CFPB standards are carried out within their operations. For instance, the fintech institutions dealing in money lending will have to ensure that the customers are given enough opportunities to be considered for discounted loans or loans at low rates. The CFPB has released a list of code for federal regulations which helps fintechs know which regulations apply to their company’s operations. Although, the list doesn’t include the name “fintech” but it is authorised to regulate companies which falls under the financial institutional purview.
4. KYC Compliance
KYC applies to every financial institution that directly deals with the end customer. It means that all the regulations that deal in onboarding and managing digital customers identity will be applicable for fintechs. Some of those regulations are Fair and Accurate Credit Transaction Act (FACTA), Dodd-Frank Reforms, Customer Due Diligence Final Rule. KYC can be considered as a tool to enforce AML with the goal to mitigate fraud by effectively monitoring customer activity. Under the KYC compliance, the fintechs are supposed to flag suspicious activities. For both big and small financial institutions, KYC is necessary.
5. Customer Identity Protection
The fintech industry is ever-growing and the security concerns will continue to rise. Thus, the fintechs are supposed to protect the personal and financial information of their customers. It is certainly the fintechs’ responsibility as they are the data receiver.
6. Restrict Access to Data
Not most of but a very significant amount of cyberattacks happen from within companies. Most of the fintech companies have a lot of their business processes outsources which makes them vulnerable to data theft. The worst part is that when the data theft happens within the organization, it is very difficult to identify the source.
Being a fintech company, you should restrict the access to the data and should keep an account of the individuals and companies who request access to the data. Also, the outsourcing companies that you partner with, for example, your IT service provider should be GDPR compliant. Nimble AppGenie is a GDPR compliant IT service provider, contact us here if you’re looking for an IT support service provider for your fintech.
Envision the Future of Fintech Business Compliances
By no means, the fintech industry is stagnant. It is ever-evolving and will keep expanding at a rapid pace. Likewise, the fintech regulations will continue to change and it is very crucial for companies to remain compliant to the changing regulatory environment and standards or even help regulators create new standards.
The ongoing rise and growth of digital technologies like AI, ML, IoT, and Blockchain several industries around the world are withstanding a significant disruption. Even the financial sector is ready to transform with the escalation of investment in financial technologies
In the world of the financial sector, financial technologies are the innovative breakthrough which has given the industry an opportunity to offer personalised financial services with increased security. In simple terms, the idea of digital transformation in the financial sector revolves around transforming traditional financial services to more simple and straightforward digital financial services.
Digital transformation of financial services sails on the financial technology development efforts made by financial institutions to meet the customer expectations. The digitisation of financial services not only makes the delivery of financial services convenient, but also it streamlines the entire process which results in a reduction of operational costs and strengthening security.
Rise of FinTech Application Development
Emerging technologies in financial services industry have evolved over the years and made it possible for developers to develop secure and convenient fintech applications. Now, it has become possible for fintech businesses to stay compliant with the fintech regulations. Fintech services like eWallets, UPI payments, digital banking, online trading, and many others are reshaping the world of finance.
What are Financial Technologies?
Before we dive further into the world of financial technologies, let’s understand what these are. Financial technologies are advanced technologies that help financial institutions deliver their services with ease and convenience. The emerging technologies in financial services industry have even introduced new business models and financial services.
The modern customer looks for the services that are easily accessible and offer them quick responses promptly without making them wait for long. Thus, the traditional model of delivering financial services will go into oblivion in the coming times as the fintech business model will gain its momentum.
According to a recent report by Statista, China holds the top position in the fintech market with overall transactions valuing at USD 1,596 billion in 2019. Another report states that the fintech market will grow to USD 381 billion in 2022 from USD 151 billion in 2017. The statistics indicate that it is a multi-billion dollar industry and will continue to grow rapidly.
The Bank of Canada recently announced that they would be issuing CBDC (Central Bank Digital Currency) as part of its contingency planning. However, the bank is concerned about underinvestment in safety by FinTechs. The bank is planning to introduce separate taxes and subsidies to encourage safety in the FinTech ecosystem.
Quick facts:
The primary focus for FinTech lenders is not short-term loans. 88% of the FinTech loans are between 13-60 months.
The ‘underbanked’ population isn’t the only one benefiting from FinTechs. 51% of FinTech customers have more than two credit products.
Although the FinTech industry is in its infancy in Canada, with 61% of FinTech startups founded during 2012-2017, FinTechs holds 25% of the Canadian PayTech market.
Image Source: PWC
Reasons Why Fintech is Flourishing in Canada?
As Mukul Ahuja, the leader of financial services, insurance strategy, and AI with Deloitte, pointed out that FinTech is a broad industry. Considering the current financial technology adoption, there are ten areas in FinTech that range from personal finance management to insurtech.
The Canadian market is exciting as it has followed the global market trends, with the recent pace of adoption picking up steam. The market holds around a thousand FinTech companies, and every day there is a new one popping up.
The following are some of the reasons why there are considerable scope for Fintech in Canada:
PAYTECH IS NO. 1
With around 25% market share, PayTech is the leader of the FinTech industry in Canada. The term PayTech involves FinTechs, mainly focused on savings and payments, deposits, which are often tied to banking and financial giants in Canada. Needless to mention that PayTechs are not involved in insurance, mortgages, wealth advisory services, and lending.
PayTech players in the Canadian market include Koho, Paytm Canada, etc. Koho offers a no-hidden-fees bank account with full digital banking services, whereas Paytm Canada is a dynamic mobile payments app.
Moreover, the traditional banks have also started creating their own version of FinTech. For instance, Meridian Credit Union launched Motus Bank as its own challenger to cater for digital-savvy customers. Also, the CIBC rebranded themselves as a virtual bank – Simplii.
TORONTO IS THE HUB
Canadian FinTech growth is considered to be fueled by the Toronto-Kitchener-Waterloo corridor. A report in 2019 by TFI (Toronto Finance International) states that this region holds 20-plus incubators/accelerators and 194 startups, boasting a CAGR of 118%, which is among the world’s highest.
Many Canadian financial institutions are headquartered in Toronto. This makes Toronto the best place for FinTechs to do business, whether the intention is to either compete with the financial institutions or complement them directly.
Wealthsimple and League are among the homegrown exceptional FinTechs companies dealing in online brokerage and health-insurance respectively. Both of these FinTechs made themselves to the FinTech 100 list for three consecutive years – 2016, 2017, and 2018.
AI DRIVES FINTECH — AND CANADA IS THE HOTBED
Emerging technologies such as Artificial Intelligence (AI) and advanced data analytics are among the most used advanced technologies that drive FinTech innovation. At the same time, Canada is the powerhouse for AI and, therefore, an excellent fit to reap the benefits of AI in FinTech. On the one hand, Montreal is the host to the most extensive concentration of deep learning students and researchers globally. On the other, Toronto is home to the highest AI startups globally.