What you need to create mobile applications for issuing a loan
Financial technologies, also known as fintech, are a developing industry segment that has begun to really destroy traditional methods of providing financial services. Thanks to this, financial activities, which at some point were extremely cumbersome, have become extremely simple and flexible.
How do such P2P lending applications work?
The formula for P2P lending applications for quick lending is selective. Funds are received from crowdsourcing, which excludes third parties and directly provides credit products to the user. Loans are authorized on the basis of data exchanged by the user, as well as on the basis of data obtained on the basis of algorithms that take into account various online and offline data sets. Sometimes credit applications demand personal information on your phone. Payments on these loans are guaranteed because they are tied to credit ratings, and customers are motivated to maintain their credit ratings at a high level.
What are the common features of lending loan applications?
Thus, FinTech lending platforms have some important features that are universal for almost all applications.
They include the possibility of:
- Registration and upload of documents: register an account and confirm your credentials by uploading identity cards and other documents.
- Apply for a loan: apply for a loan by filling out the form directly in the application
- Repay the loan: it is easy to make loan payments directly from the application by connecting it to another banking service or card
- Contact customer service: contact customer service in case of any questions or complaints
- Attractive UX / UI: loan amount, interest, and balance amount are neatly displayed graphically.
If you plan to explore the territory of loan lending app development for the provision of financial services, it is possible to add value and differentiate your new offer from the existing pool. The following section describes the technological capabilities that can be used.
What features can be better to apply for credit?
Applications such as Branch and Tala find it difficult to win customers, and the results show that they have already occupied a niche for themselves. The good part is that their existence and adoption confirm the business model. The best part is that there are a few more possibilities if you want to create a similar enhanced loan application.
Some features that can improve the user experience and usefulness of the fintech loan-based application and help its owners gain a competitive advantage include:
- Artificial intelligence. The first step is to consider using AI for a more accurate loan authorization process. Then, if you want to better understand your customers’ needs, you have to use simple language processing. The third step is to use artificial intelligence to provide improved and automatic support in the form of chats and virtual assistants.
- Blockchain: blockchain integration is also a very promising step. Smart contracts can help to verify the identity and integrity of loan applicants much faster and more accurately. Distributed books are already used by financial institutions for identity verification and form processing. Smart contracts help to authorize users if needed.