Most investors look at P2P lending as a profound opportunity to vary their investment portfolio. On the other hand, some borrowers pick this opportunity for a fair credit and funding resource. Since these lending platforms are becoming mainstream, imagine what you can do to begin an intuitive peer-to-peer lending business. Looking out for information on successful lending guidelines, every maker stumbles on the most obvious team and blindly follows it. The market does not offer any real ideas on the development process and how you can acquire a streamline of user acquisition. We here will share our viewpoint of good lending application development and how you can implement the same in your business.
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What is a peer to peer lending?
Peer to peer lending process allows people to acquire loans directly from individuals. This system is an alternative to the credit unions and traditional banks that allow lending services. Peer-to-peer lending platforms allow making money on fees they acquire from investors and borrowers. The most popular websites for money lending are credit, twine, etc. You can Know more information about the best lending software solutions, and start P2P lending businesses in several niches and then shift to other markets when you see fit. P2P lending covers real estate, auto, educational, business loans, and debts.
Educational P2P lending platforms
Scientific and education invoicing is a sufficiently new market for P2P lending businesses, but is proving incredibly successful. Studies show that about eighty percent of students in schools and universities take educational loans to complete their studies. The average university student acquires over thirty thousand to acquire a bachelor’s degree.
Many users can also avail themselves of a loan to get funding for research and scientific programs. With the high demand for loans in educational platforms, the P2P market remains sufficiently untouched. Only four to five global companies like college finance touch into this market to help students.
Automobile financing is a very young niche inside the P2P crowdfunding market. According to the latest surveys, the gross value of the car P2P lending market is over thirty-seven billion. Above eighty percent of this value goes towards the secure personal loan market.
Automobile financing can be one of the fastest and easiest methods of acquiring a vehicle with no joining fees. Customer-oriented services with low rates can help companies acquire customers with very good credit. Zopa is a good example of auto loans that offer over five years with a four percent interest per annum.
Real estate financing
Real estate is the most prevalent niche in the P2P lending market as it can be the perfect choice for borrowers looking to acquire extra capital over their investment. Moreover, such lending platforms remain less risky in legal terms when we compare them with traditional investing in real projects. If projects are hindered the investors make money first, and P2P lending services become more popular. You can easily Now check out here best p2p lending software for real estate businesses.
Business 2 business financing
Business to business financing constitutes the primary market for P2P lenders. The market has hundreds of websites that target restaurants, hotels, cryptocurrency, transportations, tech startups, and fintech. LendingCrowd is one of the most popular P2P businesses in this arena and they offer a starting interest of 6.5% for the first sixty months. There are also no early repayment fees and no necessity of paying for the first year.
Necessary aspects of a P2P lending platform
Once you finish choosing your preferable niche, it is time to consider how you want to go forth with the development process. Every P2P lending platform should have the most desirable aspects of this software in implementation that should be present regardless of the size of your business.
These are the aspects that a peer-to-peer lending platform needs-
- Security module
Since the internet is a big resource and mostly unmoderated, attacks from unknown sources are relatively common. Therefore, as a guarantee, your users do not want to be a victim to online crimes. You have to protect the financial and personal data they share with you, as they trust your company.
- Money transfer and payment methods
Payment services are a fundamental necessity of lending platforms as not all of them will prove suitable to lenders. You will have to acquire a solution that accepts B2C and C2B transactions.
- Personal document management module
This module allows you to streamline electronic transactions by eliminating paper reporting and documentation.
- Administration dashboard and CRM
This section allows a wide view over every platform’s performance, management, server state, user data, etc.
This area allows your customers to transact with different investors. If you do not include it in your app, you will not be able to provide P2P lending services.
Besides these obvious features, most P2P lending platforms can have extra benefits to drive customer experience and appear unique.
Loan amount calculator
A loan-calculating tool is excellent for explaining to new visitors what they acquire while working with your company. Your customers can usually enter the sum of money and the calculator will give them the annual percentage rate, loan period, and the monthly payment amount. The number in the display will change as the user enters new amounts to calculate interest rates.
It would aid if you place the tool on the homepage of your website to generate potential customers more effectively. You can also form separate pages that have a user guide from the calculator.
Credit score calculator
A credit score calculator can be an excellent addition to a loan calculator and you can make something functional out of the combination. This system will allow you to add more questions such as name and address to speed up communication. You can ask the user for the amount they need, lending plan, name, location, and then allow them to check their rates.
When a user tries to check their rate, the platform will send their personal information to the service provider and a score check will initiate. This addition will allow you to eliminate the abundance of emails for financial communication. Email is a very useful commodity but can be messy when we consider financial communication.
About The Author
Hermit Chawla is a MD at AIS Technolabs which is a Web/App design and Development Company, helping global businesses to grow by Global Clients. He loves to share his thoughts on Web & App Development, Clone App Development, and Game Development.
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