The digital lending market size has grown significantly in recent years. It was estimated at $5.84 billion in 2021 and it is expected to reach 25,9% CAGR by 2030. So if you’re planning to enter the fintech industry, it will be a winning decision to start with the loan lending app development process.
In this article, you will find a brief overview of the loan app development process and bonus tips to make it more cost-effective.
What is a Loan lending App?
The main specifics of loan lending platforms are the ability of lenders and borrowers to interact without the engagement of third parties like banks or other financial institutions. Loan platforms are considered to be a universal fintech solution as they can be used to cover any type of financial loan (personal, student’s, mortgages, etc.)
Loan Lending App Development
As with any software development, loan app creation is a comprehensive process that contains many steps, so you should plan everything carefully.
- Start with discovery & analysis – define your target audience and its needs, choose your target countries and regions, investigate your competitors and try to outline your competitive advantage, discover the market and evaluate the potential viability of your business idea
- Plan your software development project step-by-step, setting your main and intermediate goals. Evaluate precisely all the needed resources – time, budget, required talent, etc.
- Choose your tech stack – as every app is special it’s hard to say for sure what technologies are good or bad for loan app development. Everything depends on your requirements and budget. However, keep in mind that advanced technologies such as AI, blockchain, or ML can be an immense benefit for your project as they not just improve user experience but strengthen your security which is extremely important for fintech apps
- Create prototypes – draft versions that can be changed as many times as needed, so it’s much more likely that the final result will surely meet your expectations
- Code creation it’s the stage when your idea transforms into something tangible and is implemented into code
- QA & testing – this step is of crucial importance as its main goal is to ensure that the app runs smoothly, has no bugs, and is ready to launch
- Launching to the app stores.
How to Save your Budget Developing Loan App?
To make the loan app development process cost-effective, it will be much better to hire not just an ordinary tech team but one who has profound expertise in fintech development. For example, you can feel free to contact Perfsol – a fintech development company that creates innovative software solutions.
Recently, we delivered a loan app for one of our clients so here’re some insights that we want to share with you.
MXNEY is a multifunctional fintech project from the US. It took us 800 hours to create this app. Our average app developer’s rate is $40 per hour (in the US this hourly rate is $80-$100). So we can conclude that this app budget was around $32,000. In comparison, the same project developed by developers from the US will cost a minimum of $84,000 (it depends on the project’s complexity).
To sum up, software outsourcing can save your budget so you can use it for app promotion or other important goals. Contact our fintech app development team from Ukraine to discuss your project, get expert recommendations on both business and tech development, and make your first step toward the creation of your dream app!