Loan lending app development is an excellent Fintech idea; however, there are various milestones or hurdles that an entrepreneur must overcome to build an app that truly serves its purpose.
In The United States only, the alternative lending market reached $344,421 million in 2022, revealing an increase in people’s adoption of lending apps.
With such immense market adoption, there is a vast market and innumerable demography of people who would use a loan app.
Let’s explore how to build a loan app and the nuances of the stages, from idea conception to funding to building and designing the app.
Prerequisite steps to cover before you create a Loan App
Before creating a loan app, you must ensure that your business is registered.
The documentation depends on the country your app will operate. For example, there are specific licensing your company must undertake before you can officially lend people money for a profit.
You also have to register your business as a Limited Liability Company to protect your finances from lenders in the case of bankruptcy.
How to Build a Loan App: 5 Things to Consider
1. Competitor’s UI/UX and Functionality
When learning how to create a money lending mobile app, the best way to go is to study the market.
What are the biggest lending apps in your region or country doing right?
What is your unique selling position?
How can your services be better?
Also, check for the competition’s design, layout, UI/UX experience, and review on the Play Store or App Store.
2. Think about Growth
The loan lending app development market is vast, and a company with a range will see quick and mass adoption; hence you must prepare for growth. For example, data storage needs to increase with an increase in data.
Scalability is important to mobile application development.
3. Determine the Tech Stack You Will Need
Thinking about how to start a loan app? The tech stack plays a major role in the success of your application. Mobile applications must be seamless, from UI/UX to backend development, Blockchain network, security protocols, and storage.
Backend developers should have skills including Node.js, C++, Python, PHP, Go, and Ruby. Flutter app developers are also in-demand for mobile application development.
You do not need a developer that has mastered all the pre-mentioned frameworks and programming language; however, your mobile application needs will determine the tech stack you will organize.
The team selection process is the hardest, especially for non-techy CEOs. The problem with hiring a coder, especially for people who do not have immense coding knowledge, is the inability to communicate with the coder.
The solution to the knowledge gap is to either use the services of a recruitment firm or a mobile application development agency. You can also use your in-house development team’s experience to set up the hiring process.
Pricing worries are one of the most dominant factors in the loan lending mobile app development sphere.
Many people want excellent mobile apps, but the best developers in Western Europe and the United States do not come cheap.
There are other alternatives; for example, loan app developers from Eastern Europe, like Ukraine and Poland, may offer similar skills, but Eastern Europe developers come with a lower price tag. Ukraine, for example, is one of the largest pools of programming experts in the world.
These developers come from a vibrant community of educational-driven programming systems, and many have practical and workable knowledge of many frameworks and programming languages.
These programmers can speed up the process of building your mobile application at around a fraction of the cost of hiring a mobile app developer in the United States. Other options include Asia and Africa.
5. Legal Proceedings
The legal requirements for owning a mobile application vary from country to country. Building the app is one thing; operating within the legal consent of lending money for a profit is another matter.
It’s essential to hire legal counsel from the get-go to prevent pitfalls that could have been avoided.
When considering how to build a loan app, you must factor in everything, especially the budget, the development and design, and the legal requirements.