Let me offer you a perspective, in a conventional loan lending app you have one target audience i.e. borrower. On the other hand, a peer-to-peer (P2P) lending app targets two types of audiences, i.e. Lenders, and borrowers. It simply translates into a wider audience than that of a conventional loan lending app. In addition, there are lenders who will be lending loans to the borrowers so you invest only in the online infrastructure and you do get a piece of the pie.
Sounds good, right?
Now get this, the perspective we are talking about was sitting on the top of 35 billion USD in the year 2018 and it is growing by the CAGR of 51% annually. Therefore, it is projected that the global worth of the P2P loan lending market is going to worth more than 580 billion USD by the year 2025. Therefore, 2020 is the perfect time to invest your money in P2P loan lending mobile app development.
But before you get on board, let’s know our way around to the pie we are talking about.
What is P2P Loan Lending?
Peer-to-Peer or P2P loaning lending is a financial practice where an individual borrows a loan from another individual without any financial institutes like Banks. Maybe this is the oldest process of loan lending and borrowing. The benefit of this process is, it involves more people to engage. Hence, there are limitless opportunities for a huge amount of people. That means more encouragement and more engagement.
How does P2P Lending Mobile App Help?
The loan lenders and borrowers are scattered all around the different geographical locations. A website and a mobile app allow them to gather in one place. An online platform is an infrastructure for both end-users and it fosters convenience, expedites the loan disbursal process, and availability.
No paperwork, shorter process, and no involvement of large financial institutes make this business model cheaper for borrowers and rewarding for the lenders.
Not to forget, there is a myriad of attractive and useful features of a Peer to Peer loan lending app that makes it the first choice of any end-user.
Market Opportunities for Loan Lending App
Also known as “crowd-lending”, Peer-to-Peer lending is growing like anything ever since the market is brought to the online platform. Its global market is going to swell all the way up to 580 billion USD by the year 2025. The projection is based on the current nature of the market.
People are taking more risks to be successful and they are dreaming, and working on their ventures more than ever before. This optimism collectively contributes to more money-related transactions. As a result, the encouragement to the market is inevitable.
This is just one way to look at the steady yet fast growth of P2P lending business.
However, it is not limited to individual loans only. P2P lending mobile app is a place for personal loans, student loans, payday/salary loans, commercial loans, real estate loans, leasing and factoring loans, etc.
Countries like USA, UK, Australia, India, China, France are the market drivers in the growth of P2P lending business. For example, the worth of the P2P lending market is going to mushroom to 10-12 billion USD by the year 2023.
All these market opportunities and business growth, and how much does a P2P lending mobile app cost? Well, that’s the topic for another day.
What do you need for P2P Lending Mobile App Development?
An amazing P2P lending mobile app development company is all that you need for your lending mobile app development. A company possesses a complete and diversified infrastructure that sufficient to provide all resources necessary for the development.
In addition, a company is capable of not only delivering what you want but their expert P2P lending app developers assist you to prepare the lending app for the future market as well.
Just to give you an idea, in any company, you are looking for a team that has following members,
So far it is quite evident that having a P2P loan lending of your own requires relatively less capital investment, lower maintenance cost, and higher ROI. The statistics are complementing the claim. However, there are some challenges in the way of development and designing of a sustainable loan lending app.
But I guess every new venture has its own sets of challenges followed by some creative solutions. Because there are always some solutions. And in the case of the P2P lending app, the growth opportunities and solutions easily overshadow the common challenges of the industry.
Now if you wish to know more about the loan lending app development, you can simply go through our ultimate guide and make a lucrative decision.
Rahul Mathur is the founder and managing director of ARKA Softwares, a company renowned for its outstanding mobile app development and web development solutions. Delivering high-end modern solutions all over the globe, Rahul takes pleasure in sharing his experiences and views on the latest technological trends.