Datamatics Global Services: How to Build a P2P Money Lending App for the Year 2022
As the world is plunged into post-pandemic turmoil, economies around the world are feeling the brunt. Many investment projects have been expensive. However, digitization has helped people lend and borrow on a small scale in a safe and secure way. We are not just talking about institutional investors, many individuals can also lend money to people or businesses in need. This is called P2P lending. Peer-to-peer lending apps connect people who can lend money with people who want to borrow money. In this blog, we will see how these apps work and what features they can have:
How do mobile lending apps work?
Let’s first start by understanding how money lending apps work. The mechanics are not rocket science. All users have to do is:
Download the app from the App Store.
Create a new account or log in to an existing account.
Type the amount needed or the amount available for investment.
Choose an appropriate interest rate.
Link the bank accounts to the app account.
It pretty much does. Fintech apps have the functionality to notify users before deducting payments or accumulating funds in the lender’s account to avoid paying late fees, overpayments, etc.
P2P Money Lending Mobile Apps – Benefits
Payment or lending apps usually bypass all intermediaries such as brokers, banks and other players thus avoiding any hassle related to them. Both the lender and the borrower are the sole owners of the business association and must negotiate repayment terms directly between themselves.
The borrower applies for a loan and the app performs an automated background check on the legitimacy of the loan with the documents submitted. Lenders can review applications and approve the ones they want. The app owner may also receive a percentage profit with each loan request executed, or may charge a subscription payment. The absence of mediators such as banks further ensures appropriate interest rates for both parties.
Money Lending Mobile App Features
An app, be it for any utility, should be easy to use, user-friendly and have an elegant user interface, seamless interactions and fast usage. It should provide a smooth journey for users as well as administrators, lenders or borrowers.
Basic features of the money lending app
Let’s take a look at the must-have features of fintech apps.
- Register Login: An app user should be able to register and log in to their app account with a phone number, email address, or social account like Gmail or Facebook. Users must enter their details to be verified by the platform.
- Loan management: Users should also be able to check loans, their calculated monthly installments or EMIs, value of GST or Goods and Services Tax, platform fees, and more. Borrowers must be able to build and submit their loan applications, choose an appropriate repayment period. , and interact with lenders on all aspects of the loan process.
- Payments: A loan application should have a history of payments made to provide transparency throughout the process.
- Transactions and EMI: To repay the loan, the borrower still has to pay EMI which includes interest as well as principal. Once the EMIs are completed and the loan amount is paid in full, the transactions are logged for auditing and further reference.
- Transfers and withdrawals: The lending application should provide options to send funds to the user’s bank account or respective bank card.
Additional Peer-to-Peer Lending App Features
Chatbots, loan management, reports, administrative activities and many other features are important for a transparent and fast money lending association for the parties involved.
Reward Points and Ratings. Both the borrower and the lender’s account can be credited with reward points for performing their obligations on time, thus rating them for new users to compare.
Custom reports. The loan application should provide reports related to all parties and these reports should include information such as the number of active loans for a user, the number of EMIs paid, those remaining, etc.
Chatbots. Chatbots can teach users to master the app in no time and get used to navigating it through its functions.
AI-based analytics. Administrators, as well as users, can benefit from real-time analytics. Lenders can assess the KYC details of potential borrowers and assess their credit history. Administrators can get comprehensive analytics on different aspects of application operations, with technologies like Big Data and AI to gain actionable insights and improve user experience.
The more premium features are implemented in an app, the better it can stand out from its competitors. Filtering out must-have features and others that improve UX is essential for a successful MVP launch for a lending app that will generate profits. Whether you need a full-fledged peer-to-peer money lending app or just want to grow your team, contact a p2p lending app developmentbusiness.