Loan Lending App Development
Rapid digitalization of traditional financial institutions, global economic changes, COVID-19, and many other factors became a powerful impetus for the increase of digital lending popularity. Unlike traditional money landing processes that are mostly based on human interaction and are very vulnerable because of the high risk of human error, digital lending apps can automate many financial tasks, accelerate decision making processes, enhance management of big data amounts, and improve customer experience.
Based on Statista research, the loan lending market is expected to face immense growth by 2024 with market size valued by more than $24 billion. So if you want to start app development but keep putting it off for a while, we’ve got a sign that it’s the right time to act now!
Loan lending app development is very likely to become a winning decision for you. Below we shared some info that will come in handy to make your app development process smooth and cost-efficient.
What is a loan lending app?
To start with, a loan lending app is a specific type of fintech platform that allows direct interaction between lender and borrower without the need to engage third-party intermediaries – banks, credit unions, etc. That’s why these apps are also called Peer-to-Peer (P2P) apps.
Digital loan platforms are able to cover every step of the loan process and fit any loan type (students, mortgages, vehicle, business, personal, and other loans).
Among the most popular loan lending apps are Prosper, Upstart, Earnin, Brigit and others.
What features should a loan lending app contain?
We won’t dwell on basic features like ability to apply for loans, set payback period, transfer and withdraw money, set payment schedule and so on. Let’s take a closer look at the feature set that can be not so obvious and can help you stand out from the crowd.
- Loan Calculator – this feature can significantly facilitate the borrowing process and increase customer’s loyalty. Only with one screen tap your app will be able to calculate the amount of interest your user has to pay on loan for a certain period.
- AI-based features – with AI technology on board, loan lending apps are able to provide personalized analytics, determine creditworthiness, increase loan lending efficiency, and provide better security.
- Chatbots – they help your users get the answers to the most common questions quickly.
Loan lending app development cost
Each project is individual and requires a different tech stack, design complexity, number of tech experts, and many other factors that make it almost impossible to provide precise cost of lending app development. However, our tech company Perfsol has a profound experience in loan app development so we can provide you with an approximate evaluation based on one of our recent projects.
MXNEY is a multifunctional fintech project. It took us approximately 800 hours to deliver all the required features. Our average app developer’s rate is $40 per hour (in the US this hourly rate is $80-$100, as you see, the difference is significant). So we can figure out that this app costs approximately $30,000. Based on our experience, we can state that loan app development cost starts from $30,000 and can reach approximately $84,000 (it depends on the project complexity).
If you want to reduce your loan app development costs and get high-quality software, feel free to reach out to our team. Perfsol is all set to implement your ideas to life and be your reliable tech partner in your app development journey!