Why Should P2P Lending App Be Your Next Investment in 2024?

Updated 28 May 2024
Published 13 Feb 2020
Rahul Mathur 2354 Views

Let me offer you a perspective, In a conventional loan lending app, you have one target audience, i.e. borrowers. 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 top of 35 billion USD in the year 2018 and it is growing by a CAGR of 51% annually.

Therefore, it is projected that the global worth of the P2P loan lending market will be more than 580 billion USD by the year 2025.

P2P lending market report
Image Credit: statista.com

Therefore, 2021 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, lending is a financial practice where an individual borrows a loan from another individual without any financial institutions like banks. Maybe this is the oldest process of loan lending and borrowing. 

P2P Loan Lending process
Image Credit: finextra

The benefit of this process is that it encourages more people to engage. Hence, there are limitless opportunities for a huge number of people. That means more encouragement and more engagement.

Read Also: How To Develop a Peer-to-Peer Payment App like Cash App?

How does P2P Lending Mobile App Help?

The loan lenders and borrowers are scattered all around 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 increases availability.

P2P Lending Mobile App

No paperwork, a shorter process, and the lack of involvement of large financial institutes make this business model cheaper for borrowers and more rewarding for lenders.

Not to forget, there are a myriad of attractive and useful features of a peer-to-peer app that make it the first choice of any end-user.

P2P Lending App Development Company

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, encouragement to the market is inevitable.

P2P Lending Mobile App development

This is just one way to look at the steady yet fast growth of the P2P lending business. However, it is not limited to individual loans only.

The P2P lending mobile app is a place for personal loans, student loans, payday and salary loans, commercial loans, real estate loans, leasing and factoring loans, etc.

Countries like the USA, UK, Australia, India, China, and France are the market drivers in the growth of the 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, as well as the cost of developing a P2P lending app Well, that’s the topic for another day.

Read Also: Step-By-Step Guide for Developing Cash Advance App like Dave

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 is sufficient to provide all the resources necessary for its development.

In addition, a company is capable of not only delivering what you want but their P2P lending app development team assists you in preparing the lending app for the future market as well.

Just to go with your app idea, at any company you are looking for a team that has the following members,

  • Project Manager
  • Android App Developers
  • iOS App Developers
  • Designers
  • QA Professionals

App Development Company

Conclusion

So far, it is quite evident that having a P2P loan lending business of your own requires relatively less capital investment, lower maintenance costs, and a higher ROI.

The statistics complement the claim. However, there are some challenges in the way of developing and designing a sustainable loan lending app.

But I guess every new venture has its own set 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.

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

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.

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