P2P Lending Platform Development | A Trillion Dollar Business Idea

P2P Lending Platform Development | A Trillion Dollar Business Idea

Jonathan Raabe (Technology Advisor)

July 12, 2022

Peer-to-peer (P2P) lending platforms are paving the way for the new type of “sharing economy”. Therefore becoming increasingly popular with the advancement of blockchain technology.  

P2P Lending Platform Development

According to Statista,

  • The global p2p lending market will reach 60 billion dollars by 2022.
  • Between 2022 to 2030, the p2p lending market will be around 705 billion US dollars and grow at a CAGR of 26.7 percent.
  • By 2050, the p2p lending market will reach nearly one trillion US dollars.

With so much future potential, young entrepreneurs are jumping the p2p lending platform development bandwagon to swiftly enjoy the virtual lending space. P2P lending platform development companies are offering Whitelabel solutions to efficiently cater to their needs and speed up the development process.

As the global p2p lending market is expected to become a one trillion dollar industry, acting swift is the key to success. If you are planning to grab this trillion-dollar opportunity and build your p2p lending platform, then we are here to assist you. 

Connect with our team at RisingMax INC., to discuss your project idea and development needs. After analyzing your project requirements, our team will share the development cost, tech-stack, wireframe, and time needed to complete the project ASAP.

Before moving further and starting consulting a p2p lending platform development company, let us start from the fundamentals and know more about p2p lending platforms.

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What is a P2P Lending Platform?

Peer-to-peer lending platforms are ultra-modern finance solutions that eliminate intermediaries like banks and financial institutions.

With this, these platforms allow lenders and borrowers to connect and directly enjoy financial services more securely than ever before.

P2P lending platforms are an alternative to traditional lending systems and will revolutionize the field of smaller consumer loans.

Users that find it difficult to get a loan from a bank or financial institution can take advantage of the P2P lending software to get a loan.

These platforms offer both secured and unsecured loans on collateralized luxury goods.

Budding entrepreneurs are partnering with p2p lending platform development companies and building p2p lending software solutions to rule the next era.

Peer-to-Peer Lending Platform

How Does Peer-to-Peer Lending Platform Work?

Peer-to-peer lending platforms are the new-gen financing solutions that aim to simplify the finance world for normal users by eliminating intermediates. With P2P lending platform development, you can create a platform for lenders and borrowers to fulfill their requirements.

Working on a p2p lending platform is relatively simple as all the transactions take place within a specific digital interface. 

Let’s have a look at the working of peer-to-peer lending platform

  • Investors or lenders with some extra money and who are willing to lend their money and earn interest need to sign in with the p2p lending platform.
  • P2P lending platforms provide a platform where investors or lenders can interact with borrowers.
  • Borrowers can sign in with the platform by filling out basic information similar to the traditional loan process.
  • After filling out their details, borrowers can apply for a loan by sharing their needs.
  • Investors or lenders on the platform carefully analyze the loan requirements and see if the borrower meets their predefined requirements.
  • When an investor meets all the pre-set requirements the lender sets, they are eligible for a loan.
  • After this, the agreement and other loan-related documents are created mostly as blockchain-based smart contracts.
  • The borrower is liable to make payments on a regular interval as defined in the agreement.

We are here to assist you if you plan to implement a new working model for your p2p lending platform. With our expertise in blockchain and web3 business solutions, our development team at RisingMax can integrate smart contracts with predefined conditions and rules to smooth the entire process with blockchain security. 

Now you know what p2p lending platforms are and how they work. Let’s look at the benefits that make the p2p lending platform development a profitable investment.

Benefits That Make P2P Lending Platform Development A Profitable Investment

Growing partnerships between the P2P lending platform development company and business clearly indicate the future lending trend. If you are wondering about the major benefits of a p2p lending platform, this section is a must-read for you.

Smooth Workflow

Traditional lending institutes like banks follow a complex process involving a lot of paperwork and intermediaries. However, with the new-age p2p lending software, there is far less paperwork, and with no intermediaries, there will be approval or denial of loan almost immediately.

The integration of smart contracts helps in automating the entire loan approval process making it more transparent than ever before.

Low-Interest rates

By eliminating intermediaries and hefty paperwork, P2P lending can offer loans at lower interest rates. A large number of investors on these platforms give an advantage to borrowers to get favorable interest rates. Remember to do your homework to get the best loan interest rates.

Loan Without Credit Score

In the traditional loan system, an individual’s credit score plays a major role in loan approval or denial. However, with p2p lending platforms, you don’t have to worry about credit score as you can get a loan even with an imperfect credit score.

Swift Loan Approvals

After signing in with the p2p lending platform and filling out loan requirements, the lenders will review borrower applications. Borrowers will receive money in less than a week as there are a lot of lenders or investors on these platforms.

Transparent

In the traditional lending system, borrowers need to put up collateral such as gold or personal property for loan approval. However, in the p2p lending system, no such collateral is required from the borrower for loan approval. For this reason, the entire loan process must be transparent for both parties involved.

These are some of the major benefits of the p2p lending platform that make it inevitable for businesses to invest in p2p lending platform development. Without a doubt, these platforms are all set to revolutionize the lending sector. Thus, partnering with the right p2p lending platform development company to launch a p2p lending software is a profitable business idea.

Partner with the right p2p lending platform development company and take the first step to make your dream project a reality.

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Features Of Our Peer-to-peer (P2P) Lending Platform

Without a doubt, the p2p lending platforms will revolutionize the traditional lending system. To help our clients dominate the p2p lending sector, we offer Whitelabel p2p lending platforms with innovative features.

After rigorous research and thinking, we have added these features to our p2p lending platform to enhance users’ lending experience. 

Have a look at the attractive features of our p2p lending platforms

Advanced security

To ensure that your p2p lending platform is highly secure, we deploy advanced security layers such as SSL implementation and 2FA and encrypted access.

Easy KYC Verification

Our p2p lending platform offers easy KYC verification to swiftly add new users to the platform. The easy KYC verification process makes it easy for borrowers to apply for loans and get cryptocurrency directly in the digital wallet.

Escrow System

We offer an escrow system for your p2p lending platforms that are smart contract-driven to automate the locking and releasing of assets for transparent transactions.

Hot Wallet

Our integrated multi-currency hot wallet in our p2p lending software allows users to transact instantly and safely secure their cryptocurrencies.

Risk Assessment

Our p2p lending platform has an inbuilt loan-to-value ratio calculator that assists in efficient risk assessment. With this feature, users can make a well-informed decision while borrowing and lending money on a p2p lending platform.

Interest Calculation

Allow users to calculate interest rates based on their loan requirements and cash flow. Provide them a flexible interest calculation based on a yearly, monthly, weekly, or daily basis per the business model.

Refinance

With this feature, the borrower on your platform can refinance their loan from another lender, allowing them to repay the current loan interest.

Auto-Renewal

Our p2p lending platform allows lenders to toggle on and off per their needs, thereby accelerating the process.

Admin Panel

With an interactive dashboard, the admin can monitor all activities within the p2p lending software. Integrated tools include Financial KPI, Order Book KPI, Loan Profile KPI, and User Startup KPI.

P2P Software Development

What To Consider Before Moving Ahead With The P2P Software Development

Like any brick and mortar business, developing p2p software requires some prior research and business analysis. The first step will be to find the right p2p lending platform development company with expertise in both fintech and blockchain solutions. After this, you need to discuss your project idea, features, tech stack, business requirements, and other project details with them.

Here are a few things that you need to consider before moving ahead with the p2p lending software development:

Analyze Market Trends

P2P lending platform is a profitable business idea; thus, it is vital to understand business pain points, challenges, and target audience needs. You can analyze your key competitors and the lending services they are offering to customers.

All this information will help you make a well-informed decision while moving ahead with p2p lending software development and building software with USP that appeals to a larger audience.

Choose a Platform

Depending upon the above market analysis, choose whether a web app or mobile (iOS or Android) platform development. All these development doubts will be cleared when you carefully analyze your p2p lending business. So, before making a decision, do thorough market research before moving ahead with p2p lending software development.

Platform Features

The features of your p2p lending platform play a major role in the success of your p2p software. Handy features such as live support, geolocation, integrated payment options, wallet support, etc, are some of the most valuable features.

While discussing features with a p2p lending platform development company, try to opt for a user-centric approach for better results.

P2P Lending Platform Development

After deciding on the features and development platform, it’s time to move forward with the p2p lending platform project development.

Whitelabel P2P lending platform solutions are pre-build and ready-to-deploy solutions if you are looking for affordable business solutions.

You can also test the market with them and move forward with a scratch or scaling the same software product.

Launch and Gather Feedback

To ensure your P2P lending business stays competitive in the long run, gathering feedback after deployment is important.

Whether you are launching a web or mobile platform, analysis of performance metrics is important for better app performance.

How Much Does P2P Lending Platform Development Company Charge?

All set to move ahead with p2p lending platform development and eager to know the associated development cost. Well most p2p lending platform development companies charge $30,000 to $100,000 for p2p software development. However, the development cost might vary depending upon the feature complexity, tech stack, development company rates, and location.

P2P lending platform is a profitable business model, and acting fast with the software development gives you an edge over others. Want to know the exact development cost of your project? Get in touch with our expert and share your requirements. Our team will share customized p2p lending platform development costs per your business requirements.

peer-to-peer lending platform development

Conclusion

The peer-to-peer lending platform development is a lucrative business idea that is changing the lending sector.

Budding investors are taking advantage of this new business opportunity and partnering with the p2p lending platform development company for software development. 

If you are interested in building your P2P lending software, then our team is happy to handle all your development needs.

We provide scratch development and Web3 Development Company to meet your business requirements.

Dominate the next era of finance by partnering with a p2p lending platform development company and launching business solutions fortified with market-leading features.

Connect with our subject matter experts and share your p2p lending platform development business idea and development needs.

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