Today, you can get anything delivered within few minutes with the help of an app such as food, medicine, home services, and even financial services. Instant loan lending apps have taken the financial sector to new heights in terms of user base and revenue generation. Now, you don’t have to stand in queues of banks and invest a lot of time to get a loan; you can just use these loan lending apps, and within a few minutes, the amount will be transferred into your account.
The technology behind these apps has completely changed the financial game for good. It has reduced the amount of paperwork and time needed to get approval for your credentials which makes you qualified for any loan. The market of loan lending mobile app development is flourishing as the need for money is evident; everyone needs money for personal reasons or official reasons. Even small businesses are using these apps to get a sum of money instantly. These apps have immensely benefitted both the party, the lender, and the borrower. The lender is free of all the paperwork and receiving coherent payments from an automated system, and the borrower is free from those tiresome trips to the bank.
If you are thinking of developing a fast loan lending app, this is the right time, but you have to get your thoughts streamlined with your vision. Let’s dig into the learn the process of loan lending app development but first, let’s get a brief introduction about loan lending apps.
How Does a Loan Lending App Works?
The mechanism of a loan lending app is not as complicated as you may think. Just because it deals with finances; doesn’t mean it should be complex. There are companies in the market which lend money to individuals and other businesses after agreeing on some terms and conditions. These companies behave as the lender, and the businesses or individuals who need the money are borrowers.
First, the users have to create an account on a loan lending app after installing it; during the registration process, they have to provide information such as their name, age, etc. The app also asks for the bank details of the users to verify them.
In the case of a peer-to-peer loan lending app, the lenders also have to provide their banking details to carry out transactions. In the next step, users are presented with a list of options that they can choose as per their needs and send a loan request to the lender for appropriate reasons. The lender has the authority to either accept or deny the loan.
There is a verification process in between applying for a loan and receiving the amount, which includes a credit score check along with other processes. After the verification process gives a green signal, the lender approves the loan amount. The next step includes the signing of the documents virtually and accepting the terms and conditions. Soon after the process, the amount is transferred to the borrower’s account.
What’s the Market Say about Loan Lending App Development?
The money lending app market has been making significant growth in the last few years. The evolution of technology has inspired millions of ideas, and the number of startups has grown immensely. The effect of this significant growth can be seen in the market valuation of the loan lending platform market. The global market valuation of these lending apps stood at 320,891.4 million US dollars in the year 2020. Considering the current growth rate of the market, it has been projected to cross the valuation of 401,667.8 million US dollars by the year 2025.
The integration of AI and other next-gen technologies has skyrocketed the popularity of these apps. The current market scenario dictates that the loan lending app development is flourishing for businesses that deliver loan services like:
- Alternative lending for SMEs and freelancers (bank-independent loans)
- Online marketplaces for a personal loan and private investors
- Peer-to-Peer loans with interest rates
Apart from a profitable market, these apps have a lot of benefits for users and businesses. Let’s get to know the advantages of a loan lending app.
- Enhanced Security: Unlike traditional methods of money lending, these apps have made the loan lending processes extremely safe with encryptions. It is advised to the users to keep their passwords and other credentials safely.
- Enhanced Privacy: Everything related to your finances is confidential, including the reason for lending money. These loan lending apps deliver the utmost experience in terms of privacy.
- Multiple Lending Options: These apps deliver a list of options in the loans based on the eligibility of the users. The loans can be customized as per the varying needs of the customers.
- Organized Records: Financial records are the most important part of the banking process, and with the help of these apps, record-keeping has never been easy. The data is stored on the cloud that makes it accessible at anytime, anywhere.
Development Process of Fast Loan Lending App
The financial sector has an image of being complex but making an app that deals with finance are not as hard as one may think. You don’t have to deal with accounting; all you have to do is focus on the correct execution of the idea. Since these apps offer different services that benefit Angel investors, venture capitalists, investment brokers, startup incubators, and much more, you may need to improvise accordingly. But every mobile app development process follows a similar process which consists of stages like market analysis, planning, and much more. Let’s start with the first stage.
1. Market Research & Analysis
Detailed market research can deliver you great insights to carve a perfect road map for the overall development process. Gathering market insights is important to know the current trends, status, and scope of survival of your project. Market research can be done in three ways; either you assign this task to your in-house marketing team, or you can hire a marketing company that will do the job for you. The third option is extremely easy; you can just buy a detailed market research report from online marketing websites.
Regardless of the option you choose, there are some points that should be described in that report. These points include a list of competitors, business strategies, market trends, etc. The most important part of this report should consist of the user’s expectations. Your app can be the next popular app only if it matches the expectation of the users.
2. Planning the Process
The next move should be to create a perfect blueprint based on the insights of the market research report. The strategies of the competitors can be used to develop a marketing plan after the development process is completed. Analyze the expectations of the users and enlist the solutions that should solve their problems. Remember, an app enriched with technology and features that aim to deliver the best experience to the users has a greater chance of being successful. Hence, everything should be planned carefully, like features, tech stack, and much more.
a. Features to be Considered
Fast loan lending apps in the market possess a lot of exciting features that attract customers. Your app should also have features that bring value to the user’s experience. Don’t overburden the app with unwanted features that can result in the slow performance of the app. Here is a list of features that should be considered in the loan lending app development process.
User Panel Features
- Onboarding: Allow users to sign-up and create an account on the app by providing few details about them.
- List of Options: Allow users to choose from the list of options that are available to them based on their credit score and other scores. This feature allows users to get the details instantly about the loan amount limit they can borrow. In the case of the peer-to-peer model, this feature can allow users to browse the list of lenders and their offers.
- Bank Account Linking: Allow users to link their current bank to receive or pay the amount of loan. It is also used for verification purposes. Make sure it should be easy and fast.
- Push Notifications: Alert users about offers and the status of their loan applications. In the case of the existing loan, it reminds the users to pay the amount on time.
- Location: The loan process requires the physical location of the users to verify their details. It can also be turned off, and the user can fill in the detail manually.
- Security: Deliver users two-factor encryption for maximum security from any kind of security threats. Users can also set the password on their app for extra security.
- Chat/Call: Allow users to get in touch with customer support in case of any queries or issues. In the case of peer-to-peer loan apps, borrowers and lenders can talk to each other to discuss terms and issues.
- EMI Calculator: Allow users to calculate their total EMI on the amount of loan they have applied. Also, help to calculate the amount as per varying interest rate in case of peer-to-peer apps.
- Loan Application: Allow users to fill up the form for a loan and get the status on the same page.
- Manage Documents: Allow users to easily manage their documents on the app; they can delete or upload the documents as per the requirements.
- Repayment/Other Payments: Allow users to easily pay the loan EMI or any other service charge included in the process. It can be set to auto-debit mode.
Lender Panel Features
These features can be considered in case your loan lending app is based on a peer-to-peer model.
- Onboarding: Allow users to register themselves on the platform by providing necessary details.
- Account Management: Allow users to edit or add their lending plans and manage their account details in case of any change.
- Payment/Lending History: Allow users to access the history of the people they have lent money to and the payment records.
- Accept/Deny Loan Request: Allow users to either reject or accept the loan request of the customers based on certain parameters.
Admin Panel Features
- Verify Accounts: Allow admin to verify the account by checking the authenticity of details provided by the users.
- Manage Users: Allow admin to add or remove users from the platform as per their behavior.
- Reports & Analytics: Allow admin to get detailed reports with rich insights to improve performance. Admin can also get the details of the total amount lent in a certain period of time and the total amount recovered in that same period.
b. Tech Stack to be Considered
The performance of the features integrated into your loan lending app directly depends on the choice of the tech stack you choose. Ask your app development company for detailed insights on the subject. You can either get a customized tech stack that fulfills your business needs or simply follow the examples of your competitors. Here is the tech stack that is used by most of the fast loan lending apps.
For Application and Data Purposes:
- React
- TypeScript
- ES6
- Amazon S3
- Amazon EC2
- Ruby
- React Native
- Rails
- Go
- Amazon RDS
- Elixir
- Amazon Aurora
- Snowflake
- Amazon Athena
- AWS Glue
- Citrus
For Various Utilities:
- Google Analytics
- Twilio
- Optimizely
- Segment
- Looker
For DevOps:
- GitHub
- Kubernetes
- Visual Studio
- Vim
- Atom
- Terraform
- CircleCI
- Datadog
- Rollbar
- Emacs
- Consul
- PagerDuty
- Helm
- Vault
- Code Climate
- Spinnaker
For Business Tools:
- Slack
- G Suite
- Zendesk
3. Design & Development
What is the first thing you notice about any app or software? It’s the UI/UX design. Always plan ahead for the design of your application. Hire the best loan lending mobile app development company for extreme efficiency in the overall development process. With a good company comes great designers and developers who can help you in creating a thoughtful design that grabs the user’s attention. Don’t overdo the design; choose a minimalistic color pallet.
The final stage of the development process is the testing of the project. Make sure to thoroughly test your project in every possible way. Removal of errors and bugs before the launch of the app will help you in the long run. Ask your mobile app developers to perform iterative testing on the app for better results.
How Can Matellio Help You in Loan Lending Mobile App Development?
At Matellio, we have been developing flawlessly engineered mobile applications for more than a decade. Our vast professional experience gives us an edge in creating something unique for our clients. The team of developers and experts possess diverse working experience and are ready to develop a customized loan lending mobile solution that perfectly fits your business needs. Our mobile applications development process complies with all the international rules and regulations. The quality of our products can be judged by our impressive client retention rate. Get in touch with our experts over a 30-min consultation call, and let’s get started on your idea of loan lending mobile app development. Fill the form now!
