Peer to peer lending has come a long way since the financial meltdown and its not just a coincidence. It came around the time when the banks decided not to lend money to anyone. The decision brought many opportunities to the free market to provide the potential borrower with another way for people to borrow money. That is how the P2P phenomenon gained popularity. There are various technology platforms which help the consumers avail credit facilities.

One of the most popular platforms is Upstart which is the first platform using AI and machine learning to identify potential borrowers.

What is Upstart?

The company was founded by ex-Googlers including Dave Girouard, Paul Gu, and Anna Counselman. It was launched in April 2012. Upstart is the first online lending platform to leverage artificial intelligence and machine learning for providing personal loans with the help of non-traditional variables like education and employment for predicting creditworthiness of a potential borrower. They have an income and default model to determine the creditworthiness of a borrower. In addition to traditional criteria involving the FICO score, credit reports, and income they use academic variables before lending money. They identify high-quality borrowers even if they have limited credit and employment history by using their background check like schools attended, area of study, and work experience.

The company offers fixed interest loans for three or five years to pay off credit cards, consolidate debt, to do huge shopping and to invest in vocational education. The platform is not just a direct-to-consumer lending platform but it also provides technology to banks, credit unions, and other partners through its software as a service model powered by Upstart.

Upstart has completed around seven years. In these seven years, the company has grown its business impressively. According to a new report in Venture Beat, CEO Dave Girouard said that more than $3.3 billion have originated from the platform in loans. The startup makes most of its revenue from the borrower’s fee or service charges. They have been a profitable business since the second half of the year 2018.

Upstart is among the growing companies which deal with peer-to-peer lendings. The platform matches borrowers with those willing to lend. A lot of other companies that are in competition with Upstart are Funding Circle, Prosper, and SoFi. Each of these fintech companies come from typical mortgages and home equity loans that are secured against significant collateral.

Upstart is different from the other existing fintech platforms because it uses machine learning and AI technologies to make credit decisions. People benefitted by the company are largely college students aged 28 to 35 and those who have an average of $12000 in credit card debt. The use of AI has also helped the startup to eliminate fraud and automate its verification processes. The person applying for a loan does not need to provide any documentation. The whole lengthy process of sitting through screening is eliminated as well.

Upstart considers itself a technology platform instead of a finance company. It has a deal with Customers Bank and its BankMobile division as a technology partner. So, it is one of the best combinations of finance and technology.

Upstart has made its AI platform available to other lenders as “Powered by Upstart” – a white label solution for a lending application to power their own lending platform. This service allows banks and other lenders to enforce their own credit policy and lending terms at the same time being benefitted from Upstart’s patent-pending risk modeling and automation.

Funding of Upstart

The company had a total of six funding rounds until today. The last funding round was held on 8th April 2019 in which the company has raised $50 million. This takes the total raised amount to $144.1 million. The CB rank of the company is 12,293.

Future of the Lending industry

Machine learning and AI are the existing technologies which are creating and carving a new future for the lending industry. The improvement in software that learns on itself and gets expected results is soon going to conquer the industry.

If you are a startup or entrepreneur, gear up to launch the fintech P2P software with AI to keep up with the new trends and earn more profits.

How?

Whenever in doubt, depend on the experts. You need to hire fintech app developers who can help you stay in the competition and win it too. We are here to help you with the new technologies. Our developers have expertise in AI and machine learning and they have created a lot of amazing apps and websites for our clients. We can proudly say that our clients have almost doubled their business after we launched the websites and apps for them. We have a 100% success rate for all our projects. We have made P2P applications according to the requirements of our client business that are running successfully.

If you are interested to know the basic cost and time required to build a basic P2P platform, here is an overview of the price chart.

We can help with the fintech app development according to your personalized business requirement. We can also help you out while selecting different features that are needed for your platform or app. Contact us for a free demo and any further queries.

Also read :

• Reasons to get ready with FinTech app development, and how ZestMoney is providing cardless EMIs
• 4 features of Zaver app to consider while FinTech app development

The post How Upstart, a Fintech lending platform raised $50 million with the help of AI and machine learning technology? appeared first on Coruscate Solutions.

This globally thriving industry has received $17.4 billion in investment last year alone.

Fintech companies utilize technology as widely available as payment apps to more complex software applications such as artificial intelligence and big data.

Why P2P Lending Will Create Buzz In 2019?

Trusting the current fintech trends, we can easily say that leveraging the technology evolution, financial industry landscape has been going through one of the most profound and positive transformations.

There have been a number of fintech trends disrupting financial services, reinventing the process that makes a comfortable user engagement; be it peer to peer lending, funding platforms or mobile payments. These changes are so impactful that there is a significant growth in the way financial services work.

One of the best examples to understand mobile technology in the finance sector is the way payments are made these days. With the Fintech industry becoming more consumers focused, it has started being carried by the mobile technology.

As more and more consumers prefer to operate and trade via mobile phones, the introduction of new Fintech mobile app development would continue to raise allowing ease and comfort to the consumers.

What Is the Role of Fintech Technology In P2P Lending?

P2P lending is one of the best examples of risk-taking in this low-interest rate environment. The interesting dynamic is the migration of larger institutions into the P2P lending and Fintech space. Many of the loans are being packaged and sold to larger institutions.

This is another example of risk-taking, this time at the institutional level. Banks are also realizing the opportunity that exists and is partnering/buying P2P technology companies. It goes without saying that this is a quickly evolving space and one that is important to keep an eye on with future competition, regulation and market cycles.

The Top P2P Payment Apps Trending In the Finance Market

These days, cash is less and less popular and sending money virtually between friends and family is easier than it ever has been. If you need to send a friend, relative, roommate, or anyone else money for anything ranging from splitting a restaurant check to your share of a party, these payment apps can help you out.

#1 PayPal

It offers the ability to transfer money to and from any U.S.-based bank account and many foreign accounts. There is no fee to transfer funds to family or friends from a PayPal balance or bank account balance, but PayPal does charge fees to send from a credit card or convert currencies.

#2 Venmo

Venmo is most popular with young people in big cities, where they use it to reimburse friends at restaurants rather than deal with the hassles of splitting the check. It is also popular for things such as shared roommate expenses, though you can now use Venmo to pay for transactions at many businesses as well. This app is free to send money using your linked debit card bank account.

#3 Square Cash

 It is mobile credit card processor Square’s answer to the growing popularity of peer-to-peer payments. Square Cash does pretty much the same thing as Venmo, but without the social features. You can send money to, or request from, anyone with a Square Cash account, and funds are drawn from a linked bank account via debit card at no cost.

Square recently added the ability to buy and sell Bitcoin to the Cash app as well, which gives it a unique feature compared to other popular payment apps.

#4 Zelle 

It offers a unique way to pay friends or family right from your bank. You can send without installing the app on your phone, though you can download Zelle’s app and connect to your bank account, too. It is free to send and receive. You can only connect oe bank account to your Zelle profile at this time, so if you sign up, make sure it is with your primary account.

The growing list of participating banks includes titans such as Chase, Bank of America, Citi, U.S. Bank, Wells Fargo and online banking leaders, Ally and Capital One.

#5 Google Wallet 

Google offers a route to do almost everything you can do online, and sending money is no exception. Google Wallet is unique in its integrations with other Google products, including Gmail. Yes, you can send money to someone by email using Google Wallet and Gmail. If you have a Google account, you are essentially already signed up for Google Wallet.

#6 Facebook Messenger

Facebook already knows everything about you, so why not hand over your debit card and integrate sending money with your chat experience? Because most everyone is already on Facebook, you can send them money without waiting for them to sign up for an account elsewhere. They just need to add a debit card to be paid.

Payment information is private. When you send money, all the recipient sees is the amount, your name and your profile photo. Once a payment is accepted, it shows up in the bank within five business days. It’s as simple as that.

Because their focus is technology, fintech companies focus on safety. They have tech measures in place to safeguard consumer details.

The Future of P2P Payment Applications

Peer-to-peer payment market is likely to grow and become even more competitive over the next couple of years. The structure of the market is also likely to change, as messengers and built-in payment services started to gain attention within the last three to four years.

The promise for small startups to grow and develop their peer-to-peer payment solutions complementing the market rather than disrupting it.

Fintech is experiencing unprecedented growth thanks to a much more innovative way of doing business and providing a better service for consumers.

The future looks bright for the sector, and the development of P2P lending will certainly have a big role to play.

It is not unrealistic to expect that soon we will see a P2P lending market with only several big players that are represented by full-stack applications and multiple chatbots and microservices that are popular regionally but not known across the board.

Hence, we can say it the best time to develop P2P lending platforms or portals. Also, you must be worried about the cost of development right? Let’s see what our expert team replied to our question.

How Much Does It Cost To Develop P2P Payment App or P2P Lending App?

Creating fintech software is always an expensive journey, and it takes a lot of expertise to build a p2p payment app or p2p lending app. Coruscate, a prominent mobile app development company, believing in developing user-friendly and focuses on essential features such app should have.

The app development cost depends on various factors, including how big the team is, what services they provide and where they are located. If you are interested in getting develop such apps, get in touch with us. We will help to shape your idea and convert into an application.

The post Create P2P Payment App or Lending App in 2019, Right Time to Develop P2P Lending Platform appeared first on Coruscate Solutions.