How to create a Money Lending App?
If you have been thinking about creating a money lending app, you may have noticed how this business has thrived in recent years. And indeed, more and more people choose mobile banking over managing their finances in traditional institutions due to many conveniences. However, a good performance on stage never shows all the hard work behind the curtains, and developing a loan app is no exception. To make the application top-notch, safe and fast, future app owners must take care of many security issues, pay attention to legal regulations, integrate third-party tools, and the list goes on!
Money Lending App Types
Small Loans For Cash Advances
Usually, under $500, they work best for fast funding and charge minimal fees, offering automatic overdraft protection. Chime or MoneyLion are money loaning apps of this sort.
Small Personal Loans
Usually under $5,000. This type of money loan app is appropriate for those who need quick funding and relatively low credit score requirements. Universal credit, for instance, grants access to personal loans ranging from $1,000 to $50,000, even in case your credit is damaged. Among the leading platforms, I'll also mark LendingPoint, which doesn't take much time to let you register an account and issues the loan on the next day after confirmation.
Startup Business Loans
Usually, over $5,000 — as you can guess from the name, these loans suit startup owners who aim to set their businesses in motion. Applications of this type, like Lendio or Bluevine, to name a few, give access to lines of credit, connecting your business to various lenders. Meanwhile, a good deal of loan applications is known to only operate in certain countries or states. Lendio is available worldwide, which is a win for both parties.
Why Create A Money Lending App?
We've had a look at some of the best money lending apps and the traits that make them stand out. Before jumping into the challenges of developing such an app, there's a positive side to it. Since your customers are those who need money and need it fast, it mustn't cost your imagination a lot to picture why they would need a lending application on their hands:
Here are some potential perks for you to own a custom lending application now:
How To Create A Money Lending App:
Step 1: Inspect The Market
Take a good look at other lending apps, noting their strong and weak sides. Try out a few of them to gain first-hand experience. Otherwise, watch some lending app reviews on Youtube, and don't forget to read the comment section! You can find some valuable feedback from users about their experiences. This is your homework that will give you a bigger picture of the market you're going to enter. To develop a Money Lending App check with Mobile App Development Company in Gurgaon.
Step 2: Decide On The App Type
After conducting market research, think of the crucial attributes you'd like your loan app to include. You can go back to the money landing types block and decide what app you can and want to build, for example:
Many factors like app development cost, team, outsourced services, and future app features will depend on the app type. At this stage, you should make your current plans and shape your ideas in a more realistic and practical framework.
Step 3: Gather A Team
As you have an approximate plan on how to start a lending business, choose your squad to discuss the work strategies more thoroughly. Basically, you have four options here:
Each team type differs in price, starting from freelancers as the most affordable option and lending to a development agency as the most costly. Opting for an outsourcing team is an optimal solution regarding the costs, development speed, and quality. Check the comprehensive guide on how to find app developers for your project and how it benefits your business.
Step 4: Choose The Tech Stack
Now we've moved on to the practical step. Think of your web infrastructure and what technologies must be built within it to make it scalable and secure. These are the general points your team has to work on:
Though a money lending app isn’t a bank – it works with private user data, so security should be taken highly. The users’ data should be encrypted at rest and in transit. You should use best security practices to protect the system from hackers. Data backup, penetration testing, metadata tracking, etc.
Step 5: Integrate 3rd Parties
Since lending app development foresees different financial procedures, integration of third-party tools or software is essential. Think of payment gateway integrations, like PayPal, Stripe, bank cards, e-wallets, and accounting systems.
At this point, your app developer must connect your mobile application to the necessary tools using a set of APIs. Examine everything that needs to be integrated since the chosen tools and software will impact your loan app's functionality and security.
Step 6: Design Your App
While a good design won't make a killing, a bad design can be a real buzzkill for the target audience. Try to keep the interface simple so that the app is easy to navigate. Also, consider adding gamification, it might come in handy when your users receive credit points!
Step 7: Test And Launch!
Finally, when you're all set with the steps mentioned above, test your lending app to check its appearance, performance, and functionality. If it proves to operate smoothly, launch it in the market. At this stage, pay attention to each review you receive to implement necessary modifications if needed.
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