White Label App Development: A Game Changer For Startups
By A3Logics
/ December 8, 2023
Did you know the global app market is expected to grow significantly, with a projection of over 7 billion...
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Suppose, if you want to apply for a loan today, what would you do first? Most probably you will navigate through Google results to find the best loan lenders in your locality. Or, look out for a loan lending app that serves your purpose.
Well, with the advent of smart technology and mobile apps – the entire loan lending process from application to disbursement – has become paperless, simple and fast for today’s tech-savvy generation.
Most of the businesses are eager to participate in the loan lending app development market to have their fair share in this growing industry. But, how to build a reliable money lending app solution?
Businesses face this question when they look to turn their app idea into reality. To help companies overcome this challenge, the article will provide a comprehensive overview of the loan lending mobile app development process. Read on:
Table of Content
- What Is Loan Lending App And How Does It Work?
- Benefits of Loan Lending Apps for Businesses and Customers
- US Market Trends for Loan Lending
- Key Features of Loan Lending Mobile App
- How to Build a Loan Lending Mobile App?
- Key Points to Consider While Building A Money Lending App
- How Much Does It Cost To Build A Loan Lending App?
- Factors That Affect the Cost of Loan Lending App
Now, let’s begin with discussing each of them in detail.
What are Loan Lending App and How Does It Work?
A loan lending app offers round the clock borrowing facility to loan seekers without any need to visit a physical bank branch or loan centre. These money lending apps are a great alternative for people, not having enough time to visit a bank branch to get the loan application processed.
Wondering how these apps work? Well, money lending apps works on the principle of peer-to-peer (P2P) lending. What this means is that the process of issuing and receiving loans is executed by individuals without the involvement of any financial institution, as an intermediary. You can participate in a P2P lending app or platform both as a borrower or lender. Money lending app service providers host these P2P platforms. Majority of loans you receive via these online lending apps execute in a P2P manner. Although in some cases, lending companies also participate in this process to grant individual loans to buyers via the app at specific rates.
Intermediaries or companies take the assistance of an expert mobile app development company for building these personal lending apps. And, by building such apps, they receive a small percentage of commission on each loan credit and borrow transaction
US Market Trends for Loan Lending
The usage of loan lending apps is growing exponentially in the US. According to a Statista, 48% per cent of people in the US are ready to use a money lending app to check the amount of loan they can get via a particular online lender. Top 5 facts about loan lending are –
- $156 Billion is the total personal loan debt in US (as of in 2019)
- 2 Million People in the US have a personal loan (as of 2020)
- 12 Million People use Payday loans every year.
- 63% of people in US prefer using Mobile apps to fulfill their financial needs
- 40% people use P2P Lending Apps
Loan Lending App Features Users Value Most
- Loan Amount Check
- Checking Interest Rate
- Track Application Status
- Loan Product Comparison
- Submit Loan Documents
- Review Loan Documents
Benefits of Loan lending Apps for Businesses and Customers
Boost Profits: As a business owner, you can use various app monetization strategies like in-app advertisements, commission, etc. to reap good profits.
Higher ROI: By hiring an expert loan lending app development company, you can map a solid development and monetization strategy to receive higher ROI on your app spends.
Customer Engagement: More than 2 billion have access to a smartphone today. By building a loan lending app, you can increase customer engagement by delivering game-changing personal lending services.
Loan Lending App Benefits for Customers
No Costly Middleman: Loan lending apps have zero to minimal involvement of financial intermediaries or banks with heavy processing fees. Customer’s applications process quickly and in an efficient manner without the need of guarantors.
Low-Interest Rate: Banks typically charge high-interest rates. With loan lending apps, customers with good credit history can get attractive loan offers at minimum interest’s rates.
Paperless Process: The loan approval process is completely paperless and digital which saves customers valuable time.
Faster Approval: The loan eligibility, document verification, approval, and disbursement process is faster in money lending apps for customers.
Robust Security: Almost all loan lending apps offer multiple types of loans like personal loans, payday loans, commercial loans, etc. This is pretty handy for customers with different needs.
Key Features of Loan Lending Mobile App
The essential features that you must add in your money lending mobile app have been listed below. Don’t forget to add important features like EMI calculation, auto payments, etc in your app. This will ensure seamless user experience for your app users.
User Side Features
Registration/Login: Users can sign-up on the app by providing their personal and financial details. Once registration gets complete, they can enter the app using valid login credentials.
Apply for Loan: Users can apply for a specific loan amount using this feature. They must provide necessary documents for loan processing and disbursement via the app itself.
Calculate EMI/Interest: Users can calculate the monthly EMI along with interest for the applied loan tenure using this feature.
Payback Adjustment: Users can adjust the loan period or timeline they want to apply using this feature.
Transaction History: Users can check details of their past loans by using this feature.
Help & Support: Users can request for loan related information or assistance with this option.
Notifications: Users can receive timely notifications about their upcoming loan instalments, new offers, etc. by enabling this option.
Withdraw Payment: Users can transfer the loan amount to their specific bank account using this option.
Admin Side Features
Intuitive Dashboard: Admin can get 360-degree information like total users, total money lent, total earnings, etc. about the app using this option.
Manage Users: Admin can manage various users with permissions like add, delete, modify, etc.
Approve KYC: Admin can delegate the system KYC request to registered bank partners for paperless KYC approval.
Manage Lending Partners: Admin can manage different banking partner and their access rights using this feature.
Loan Management: Admin can verify and update interest rate and terms and conditions (T&C) for various loan categories.
Security Management: Admin can manage various security aspects of the loan lending app to prevent any data leakage or unauthorized access.
Advanced Features
Reporting & Analytics: This feature provides real-time updates about important activities running on the app to admin. This can help the lending app service provider take important decisions to improve app performance.
Cloud Integration: Integration with cloud services can help secure user data and ensure privacy.
Automatic Repayments: By setting up this functionality, you can deduct loan EMIs from borrowers account automatically. This also saves lenders from missing any loan instalments.
How to Build a Loan Lending Mobile App?
Conceptualization: Everything starts with a great idea. So, make sure you have a solid app idea, strategy and concept in mind. Decide the type of loan app you want to build along with features. Perform in-depth market research and competitor analysis to identify the market gaps and customer pain points. This will help you identify a unique app strategy and profit-making opportunities.
App Documentation: Partner an expert Android or iOS app development company. They will help you in validating your app idea and creating a solid implementation strategy along with documentation.
Building an MVP: Request you loan lending app development partner to build a minimum viable product with minimum essential features. This helps you validate your app idea and acquire user feedback with spending too much money.
Design & Development: Go for a clean, simple and minimalistic app design that customers fall in love with after first interaction. Ask your app development partner to come up with varied UI/UX wireframes, high-level design docs, etc. to choose the best one for your app. Further, during the development stage take regular updates & provide suggestions to your app developers to stay in sync with overall project progress.
Testing: Once development gets done, hire an expert QA team to perform quality testing to track any bugs or functionality errors in your app. This will ensure a bug-free end product.
Launch: After app testing, its time to launch the app on your targeted platforms. Prepare a powerful strategy for app launch along with its promotion.
Support & Maintenance: Seek out support from your dedicated development team to provide support for any technical issues as per contract. Remember, building an app is half job done, to keep it’s relevant and error-free, carry out proper support & maintenance activities.
Key Points to Consider While Building A Money Lending App
Security: Robust security is the primal requirement of any money lending app. Ask your app development partner to apply comprehensive app security measures like HTTP/SSL encryption, secure PIN/passwords, strong encryption methods, etc. to avoid any kind of security loopholes. This helps you secure important customer financial data and maintain company reputation.
Intuitive UI/UX: Delivering seamless user experience is important to higher app engagement and user retention. Hire an expert UI/UX design team to build an app interface so users can access important app features quickly and with minimum hassle. Go for a minimalist design without overloading your app with heavy pictures or icons. Build an MVP first and check app UI from the user’s viewpoint.
Trust & Credibility: Trust and credibility become important when you plan to build an app for loan lending. If customers don’t accept your business as a reputed and trustworthy financial entity they won’t use your app. So, make sure you partner reputed financial entities, lawyers or financial advisors before launching your app to improve overall reputation.
Low-Interest Rates: Any digital-savvy customer use a lending app to get attractive loan offers at low-interest rates. Keep this thing in mind and partner with multiple lenders to offer loan EMI facility at lower rates.
Legal Compliance: To run your loan lending app business without any legal nightmares, partner skilled and experienced lawyers and financial experts. Sich people will ease out the process of P2P lending via your app/platform. This will also help you avoid breaking any laws across multiple jurisdictions where you operate.
How Much Does It Cost To Build A Loan Lending App?
The overall cost to build a loan lending app with basic features can cost between $20,000 to $50,000. However, building an advanced money lending app like MoneyTap can cost you $40,000 to $100,000 approximately. Remember, the final cost of your app will depend upon a variety of factors like app design, features, targeted platforms, developer experience, developer location, etc.
Factors that Affect the Cost of Loan Lending App
There are a variety of the factors need to consider app development partner consider before quoting the final price for building your loan lending app.
Developer Location: It is the most crucial aspect due to which loan lending app final cost fluctuates. You must know that developers in North America cost high for building a money lending app compared to Asian countries like India.
Developer Experience: If you work with an experienced iOS or Android app development company, it will obviously cost you more compared to startup or freelance developers.
App Design: Design of the app is what helps you capture eyeballs and increase customer engagement for your app. But, remember the final cost of your app can differ substantially with increase in UI/UX complexity.
App Features: If you build a simple loan lending app with basic features, it will cost you less in most cases. However, as you increase or request complex features in your app, the cost will increase side by side too.
Target Platforms: Android vs iOS – this is one dilemma which you have to address before building an app. With this, you must know that building a hybrid app (launch on both Android and iOS platforms) compared to native one can cost you more.
Ready to Get A Customized Loan Lending App For Your Business?
Hope the above guide has provided you with ample knowledge about building a top-notch money lending app for your business. If you are someone who needs assistance with transforming your app project idea into reality, we are ready to help!
A3logics is an award-winning company who has a longstanding experience of 17+ years in IT consulting, website and mobile app development field. We have a unique formula of great technology, people and experience to deliver the right app solution that meets all your project needs.
Drop us a line to know more about our app development services.
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