P2P Lending Apps: Read This Before You Develop One
Photo by Thom Holmes on Unsplash
The P2P lending market is in the middle of what is estimated to be a tenfold growth phase continuing throughout the 2020s. The early phase (with all its hiccups) is over, meaning businesses have an opportunity to step into an established and growing field. This is an exciting time to get in with a streamlined, competitive peer-to-peer lending app service.
Most fintech products are conceived with mobile in mind because that’s where consumers are spending their time and money. So if you’re going to get into P2P lending app development, it makes sense to create a loan app that puts your service right where consumers are looking for it.
Here’s what you need to know to have the best chance of a successful P2P money lending app.
Understand What You Are Selling
A P2P lending platform provider is not a traditional financial institution. You are not the lender, just like Uber is not a taxi company and Airbnb does not manage hotels. Your role, from a software development perspective, is to provide the platform that connects lenders and borrowers. There are some legal considerations to running this kind of business that we will not get into. This article focuses on the development of the app itself.
It is definitely feasible for businesses to create a loan app that is secure and convenient. Your P2P lending app development process should include the following functional benchmarks:
Register and verify lenders and borrowers.
Enable users to add key information to their profiles.
Serve accurate, relevant data to users.
Intelligently connect borrowers with a suitable lender.
Facilitate secure loan applications.
Offer payment options (e.g., bank transfers, crypto, etc.).
Integrate payment functionality into your platform.
Assess and collect fees from your users.
Maintain and provide records of users’ transactions.
Distribute push notifications on account activity.
Deliver technical support and account support.
This is a Competitive, Industry-Disrupting Product
There are three main advantages to P2P lending over traditional lending:
You can serve borrowers who may not be able to get a traditional loan. There is a clear, unmet demand from people in this segment of the market. Many of these people have poor credit histories from a traditional bank’s perspective, but that doesn’t necessarily mean they can’t make payments. Make borrowers feel like they belong on your app!
You can connect borrowers with money faster than a traditional lender can. Speed and convenience for borrowers are absolutely critical factors driving peer-to-peer lending app growth. Build your app around this convenience factor!
You are not lending your own money. In other words, by providing the platform but not the capital, your risk exposure is much lower than a bank’s—yet you still get to take a cut of every transaction thanks to the service your platform provides.
Fintech Disruption = Everybody Wins
You can probably see why P2P lending is so disruptive to the traditional model. You don’t need to put up your own capital to make loans, you can serve a wider market, and you can do it fast.
Borrowers want to use your peer-to-peer lending app because it’s quick and simple, and they have a good shot at getting their loan approved. This by itself is a lucrative reason to create a loan app.
Lenders want to use your app because they can loan out their idle money and make a return without having to register as a traditional lender. They also get to set their interest rates and other loan terms, which makes them feel empowered and in control of their participation.
You want to provide this service because you get to profit from connecting lenders and borrowers, all for the cost of some P2P lending app development and the ongoing maintenance and administration of the platform.
Even traditional banks win in the long term because money lending creates wealth and ultimately boosts banks’ access to capital.
Let Soluntech Help Your App Succeed
It is definitely possible to create a loan app that is competitive in this growing industry. But “possible” is not the same as “easy.”
When you partner with a software development innovator like Soluntech, you are taking onboard a wealth of expertise with a proven track record of experience and success. We’ll help you look at any and every angle of your peer-to-peer lending app development project with an eye for building an app that lives up to your company’s strategic goals.
Here are some of the ways that Soluntech can help you to create a loan app that has a better chance of successfully breaking into the P2P money lending industry:
App Development Consultation Services: We offer end-to-end software development consultation—from the initial conception and design of the app to the entire P2P lending app development process, to the testing and rollout phase, to ongoing administration after launch.
App Auditing Services: If you already have a peer-to-peer lending app that you’ve been struggling with or want to get more out of, we can take a deep dive into the nuts and bolts and compile a comprehensive report of your app’s strong suits, shortcomings, and unfulfilled potential.
UX / UI Design: If you have the broad, strategic brushstrokes of your money-lending app figured out but need help with the minutiae of optimizing the user experience, we are glad to assist.
UX / UI Makeover: A good app can be ruined by a bad user experience. If you already have an app that is not performing well, we can drill down to the nitty-gritty of your UI and help you create a loan app that people want to use.
AI & Machine Learning: Earlier we mentioned the importance of intelligently connecting the right borrowers with the right lenders. This is a vital part of the P2P lending app development process. We can help you implement AI and machine learning to optimize for these difficult tasks.
Schedule a Free Pre-Consultation Today
Let Soluntech help with your P2P lending app development. We would be delighted to discuss your project with you in a free pre-consultation meeting.
This meeting will give you a chance to get to know us better and communicate the scope of your needs and will allow us to give you more specifics on how we can help you to create a loan app that meets the opportunities of the P2P lending market.