By the year 2028, the global digital lending market (which is already worth over $4.87 billion) is expected to grow by 24.0.
There’s a significant demand these days for easy-to-use, well-designed money lending apps. Have you ever thought about creating one?
If you want to make this kind of app but aren’t sure where to start, keep reading. Discussed below is everything you need to know about creating a money lending app.
How Do Money Lending Apps Work?
Money lending apps are also known as personal loan apps. The process of borrowing money through a money lending app is similar to submitting an application in person and borrowing money from a bank.
Some money lending apps are created by banks and other lending institutions. However, many of the most popular apps today, such as Prosper and Avant, are peer-to-peer lending apps.
These apps connect individual borrowers directly to other individuals who will loan them money. They allow borrowers to bypass working with a bank or credit union and go right to the source.
When using a personal loan app, an individual will sign in, indicate how much money they want to borrow, and share some identifying information (name, Social Security Number, etc.) to finish their application. Once this information has been submitted to the lender, a loan officer will review the information and respond to let the applicant know whether or not they’ve been approved.
If the applicant accepts the terms of the loan (including a specific interest rate and repayment term), the money will be deposited in their account, likely within a few days.
What Features Should a Money Lending App Have?
Every money lending app is unique. However, there are also some specific features that nearly every loan app will include, including the following:
Easy Registration Process
Online forms are far less likely to be abandoned when they have 3 or fewer fields for an individual to fill in.
This information can also apply to the registration form for your money lending app. If people have to input tons of personal data just to sign up for your app, they’re going to be less inclined to do so.
Make it easy for them to register and create an account. You can always ask for more data later when they’re actually getting ready to apply for a loan.
In addition to an easy registration process, the profile management process should also be simple for your app users.
Users should be able to quickly find their way to their profile and make updates or adjustments as needed. Their profile should also provide them with easy access to their loan information (transaction history, payment options, loan status, etc.).
Not only does this provide them with a better user experience, but it also helps you to ensure you always have the most accurate information on your customers, from phone numbers to income data.
Simple Loan Application
Which money lending app would you want to use? The complicated one that requires you to navigate your way through several different apps/platforms before you can find out if you qualify, or the one that lets you handle everything in-app with just a few clicks?
The simpler your application process is, the more likely people will be to stick with your app, complete their application, and work with you long-term.
Make sure your users can complete all the application steps within your app. If they have to leave and go elsewhere, there’s a good chance they’ll just abandon the application altogether and look elsewhere for their loan.
Make sure you include a transaction recording feature that allows your users to easily keep track of the payments they’ve made over time, as well as the advances they’ve received, their direct deposit history, and how much they have left to pay on their loan.
Users shouldn’t have to search high and low for this information. It should be readily available and the reports should be clear. If users are able to search through their transactions based on specific time periods or keywords, that can be a useful tool as well.
Multiple Payment Options
If possible, allow your app users to make payments in multiple ways. For example, can they pay with direct debits from their checking account? Can they pay using a debit card or credit card?
Providing your users with maximum flexibility will provide a better experience and encourage them to remain loyal to you now and in the future. It also decreases the likelihood that they will have missed or late payments since they won’t have to scramble to move money around.
Push notifications encourage engagement and allow you to easily stay in touch with your app users. You can use push notifications to remind them when their payments are due, alert them to new promotions or offerings, let them know about recent account activity, and more.
Artificial intelligence-powered chatbots are an incredible customer service feature. They allow you to connect to your users 24-7, answer their questions, address their concerns, and provide an unparalleled user experience.
When you invest in chatbots, you don’t have to worry about having an around-the-clock customer service team available, either.
Your chatbots can handle frequently asked questions at all hours and direct users to the proper resources when they need help. They will do a lot of the heavy lifting when it comes to customer service so you can ensure your users are always happy.
How to Create a Money Lending App
After reviewing the features that a standard money lending app should include, it’s time to go over the specific steps you’ll need to take to create one. Here’s a breakdown of the stages involved in making this kind of app:
The first step in developing any app, including a personal or peer-to-peer loan app, is research. There are quite a few personal loan apps out there today, and you need to find a way to separate yours from those other ones.
To differentiate your app, you’ll need to identify your target market, learn about their needs and preferences, and figure out specific loan solutions that will solve their unique problems.
You can also do additional research to see what other loan apps are and aren’t doing. Are there gaps in the market that you can fill with your new app?
Next, your job is to start planning your app. What kinds of features will it include? What kinds of layout will it have? What will the color scheme and font style be?
Taking some time to plan out these basic aspects of your app will help you to kick off the design process faster once you choose a developer and begin creating a prototype for your app.
Speaking of finding a developer, that’s your next job. The developer selection process can be tricky, especially these days when there are so many different developers and development agencies out there to choose from.
We’ll discuss some specific steps for developer selection later in this guide. For now, just know that, at this point, you’ll need to find a professional who has experience creating money lending apps to assist you with yours.
Prototyping and MVPs
Once you’ve chosen a developer and have got them up to speed on your goals, target audience, and design needs, they’ll get to work creating a prototype and Minimum Viable Product (or MVP).
A prototype is, in essence, the first draft of your app. It allows your developer to rapidly test the features of your app and make sure they’re on the right track.
An MVP, on the other hand, is a more usable version of the app. It includes the core features, is testable, and provides useful data for the finished product.
Once the MVP is completed, the development team can begin the quality assurance process. They’ll assess all aspects of the app, make sure it’s functioning properly, and identify any issues that could hold the app back when it gets launched.
If any problems arise during the testing process, the developers will go back to the drawing board and fix them. That way, the finished product is error-free and ready to use.
Launch and Monitoring
Once all the bugs have been worked out, your app will be ready to launch and users will be free to start downloading it. After your app has launched, you’ll need to continue monitoring it to see how it’s performing.
How many people are downloading it? How many people are creating accounts and applying for loans? What kinds of reviews is it receiving on the app store?
Getting answers to these questions will help you create better iterations of the app in the future and ensure it remains competitive.
How to Choose an App Developer
You don’t have to have years of coding experience or a dedicated developer on your team to get a great money lending app. When you outsource and work with a professional app development agency, you can rest easy and focus on other aspects of your business while also getting a high-quality finished product.
If you’ve never worked with a developer or development agency before, you might be a bit unsure of how to start your search. Here are a few tips that can help you choose the right person or team:
Ask for Referrals
Do you have colleagues who have created money lending apps (or other types of apps) in the past? Do you like the way those apps look and function? If so, ask them for a referral.
Referrals help you to narrow down your options and choose a developer who will likely be a good fit for you. After all, if their services are good enough for your colleagues, they’ll probably work for you, too.
If you don’t have anyone you can ask for a referral, start reading reviews of developers in your area or developers who specialize in creating loan apps. This is easy to do, and it can provide you with an objective idea of which agency is right for your needs.
Ask About Expertise
After you’ve found a few developers or development agencies that have received good reviews, head to their websites or reach out to them directly to learn more about them.
One of the most important topics to address is their experience level. How long have they worked in the development field? Have they worked with clients like you in the past?
Ask for Samples
Even if they say they’ve worked with clients like you and have created other personal lending apps, don’t just take their word for it. Ask to see samples, too. Take a look at their past projects and consider whether or not they line up with your vision.
Request a Timeline
Every developer has a different timeline for their projects. It depends on a lot of factors, including the number of features you want for your app and the total number of projects they’ve taken on across the board.
It’s always good to get an estimate before you begin so you can set realistic expectations and have a clear plan moving forward.
Review the Contract
Always review the developer or agency’s contract before you agree to work with them. Make sure you understand all their rules and regulations, especially when it comes to payment terms and ownership of the final product.
Reviewing the contract carefully will help you to avoid running into any unpleasant surprises later. Take your time and don’t make any rash decisions.
Start Working on Your Loan App Today
Are you ready to start working on your new money lending app? Follow the steps outlined above and you’ll have a high-performing app before you know it.
If you need more help creating this kind of app, don’t hesitate to reach out to us at Alpha Bravo Development. We’ll get back to you right away with a free quote.