In this blog, we will discuss how you can kick off P2P lending business and develop P2P lending app like Possible Finance which has recently raised $10.5 million.

Identifying the problems is perhaps the most fundamental step to start a P2P lending company as problems inspire people to opt for a company which offers solutions. A successful lending company always puts emphasis on practices to be the active part of user’s life through a series of positive online and offline interaction in order to know the problems they are facing and degree of those problems. Branch which is one of the most popular P2P lending companies in Africa has managed to be the only choice of African people by putting problems to bed.

Here is a list of problems people face while lending money.

• Difficult to make a monthly payment/ instalment
• Episodic loan approval
• Lending limits
• Long-winded process and operations
• Higher APR
• Dependency on credit score

If we talk specifically about Possible Finance, then two major limitations of P2P lending business which are related to credit score and APR stimulated venture capitalist Rebecca Lynn to get Possible Finance off the ground. They charge a little APR to the borrowers where payday lenders charge astonishingly high annual percentage rate – 591%. Possible Finance, in addition to charging a tolerable APR, also lend money to those users with the worst credit score or no credit score at all.

Over the duration of the relationship with users, customer experience is the elementary product of the interaction between you and your users. Your way of offering service always matters. Thus, after finding problems and solutions, make sure you create an efficient and user-friendly way to cater ultimate customer experience to be the beneficial choice of users.

Using the services of Possible Finance benefits users in so many ways. They approve the loan request of users in 24 hours, without bothering to check the credit score of users. They give extended time-window to repay the amount of loan. Their APR rate is relatively very low. They also share the user history of repayments with the credit agency to boost the credit score of the users.

To offer the ultimate customer experience and satisfy the value proposition, a robust mobile app is a fundamental need. It is known to everyone that a tiny mobile app is a driving factor behind the success of any kind of online business. It helps you to deliver core values of your P2P lending business to the customers in the most efficient and easy way.

The mobile app of Possible Finance is the best example of how an app of P2P lending company should look like and act like.

Following are the top features of Possible Finance app which you can ask P2P lending app development company to integrate into your app.

• The app doesn’t ask users to add comprehensive personal details.
• User can add the amount he wants to borrow.
• User can also select the payback date within the time period of 30 days.
• When Possible Finance approves the user’s lending request and transfers the money to the user’s bank account, he gets notified.
• The app reminds users to pay the instalments.
• In case of any issue, the user can connect with one of the customer executives of Possible Finance from the app itself.
• The app shows the credit score user has built by paying instalments on time.
• Here, it is worth to mention that apart from app features, there are a few other things which you need to consider while outsourcing a P2P lending app development project.

A P2P app is the part of FinTech app development and a FinTech app is not possible to develop without the payment integration. Possible Finance can deposit the money directly to the bank account of the users and users can pay the installments from their bank account to the bank account of Possible Finance which is feasible because of the precisely integrated payment gateway and processor in the mobile app. A property integrated payment gateway and processor allow users and you to carry out all online transactions in a very seamless way, unlike a poorly integrated payment gateway and processor.

Another vital thing you need to consider while outsourcing P2P lending app development project is related to the legal norms of the counties where you want to operate online P2P lending business. Each country has documented rules and regulations to perpetuate the online transaction. So, consider those legal norms and discuss it with P2P lending app development company to keep yourself away from legal trouble.

Additionally, deciding the app development approach is also an essential requirement to develop P2P lending app like Possible Finance. You can either opt for app cloning approach or custom-built app development approach. However, both app development approaches have their own limitations related to app performance, development cost and development time which puts you in dilemma.

We, at Coruscate, help entrepreneurs and business owners to choose affordable and swift app development approach to develop P2P lending app.

Now, in the last section of this blog, let’s discuss how you should govern the non-technical things of your P2P lending business.

How to manage the money-flow and manpower in P2P lending business.

Money and the number of working people are two crucial resources for every business. Any poorly implemented strategy to govern the money and manpower can cause a big financial loss.

Possible Finance runs its business with just 14 people of staff without clogging any business processes. They have achieved this level of efficiency with their resource allocation technique. If you want to make your P2P lending company as efficient as Possible Finance, find out all major business processes of your company and allocate only the necessary resources on each process. This will also increase revenue per employee.

If we talk about the business model of lending companies, then they earn the most percentage of their revenue from the APR. However, relying on only one revenue stream never help you to earn more. Thus, we encourage you to add a product referral feature in the app. It recommends services or products of other companies to the users of your app and if a user buys that product or service, that company pays you.

Coruscate Solutions is one of the leading P2P lending app development company. We have entertained 200+ queries related to P2P lending app development and developed 5+ successful P2P lending apps. Our teams of, developers, designers, and business experts help you to not only develop a next-gen P2P mobile app, but to study the market scope and market need, and to craft a profitable business model. With our rapid app development techniques, we deliver the app within 45-55 business days. To know more about pricing and features of P2P lending app development, visit our FinTech App Developmentpage. We also provide a free consultation. So feel free to ask for it.

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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.

Looking for fintech app development? Know how Zaver fintech app ruling the marketing and how you can start making money by developing zaver like app with Coruscate.

Peer to peer lending is nothing but lending money to people and businesses through online services. The companies offering these services usually operate online and lend at a lesser rate than the usual lending companies. All of us are aware of investments and a majority of us rely on banks for taking loans or investments. Investment is a term buzzing everywhere in modern days.

The P2P lendings or crowdfunding has offered a whole new set of investment opportunities for the stakeholders. P2P lending is trending and the next-gen investors are expecting a shift from the traditional means of business to the P2P lending apps for loans. Without any doubt, introducing this new platform does voice innovation.

One such startup that is into P2P lending is Zaver. According to a Techcrunch report, the company has raised $1.2 million in its first funding round.

About Zaver app

Zaver is a Swedish fintech company that has built a payment platform for enabling peer-to-peer trades and more. It was founded by Amir Marandi and Linus Malmen. The company aims to disrupt P2P payment solutions. They want to develop software and accompanying their app to bring together buyers, sellers, and merchants. This innovative approach promises to allow them to enjoy secure payments on the user’s terms.

With its app, the startup wants to facilitate trades between people by offering them flexible payment methods such as direct payments including buy now and pay later and enabling installment payments.

For that, the Zaver platform claims to embed intelligent algorithms for fraud detection. The platform automatically creates verified digital agreements between the transacting parties.
This is the first platform-independent solution for P2P transactions.

4 features that make Zaver different

Zaver enables a safe intermediary so when someone pays with Zaver, they are sure to get their money. Their payments are not dependent on the buyer’s payment to Zaver. So, the transactions are safe for the merchants. A seller doesn’t need to worry about OM and when will they get paid. Under any circumstances, Zaver takes the risk, the seller does not.

Zaver provides a digital receipt to the buyers and the sellers with the BankID and the signature. This makes it easier for both of them to stay true to their deal and know what have they actually agreed on. The buyer and seller need to verify their identities with their BanklD thus the rogue and fraud buyers and sellers get automatically filtered. If any dispute arises, the receipt where both parties’ signatures and BankID’s are included and a product description that you have seen before the purchase are always handy.

If a user pays with Zaver, he is allowed to split the payments directly into the app and credit message directly with BankID. You can use the app while shopping from private individuals and choose a direct payment method, invoice or partial payments. You can buy the product instantly and pay as per your own convenience. This is the first time that financing is available for private purchases.

Zaver provides fast customer service in case of any questions or concerns. The users can directly chat with customer care through the app.

There is another most important feature is Zaver for Business. This feature enables the sellers to utilize the platform to increase the conversion and reduce their transaction costs. They aim to reduce the need for a physical card reader.

Who is benefitted by Zaver?

Young students who want to sell their iPhone on a classified site but in a secure way can use Zaver for payments. Any plumber who wants to buy a Golf but doesn’t have enough amount to pay on the same day. These customers are provided a chance to change their lives with the Zaver easy payments.

The companies with omnichannel sales who sell their products and services online and offline are majorly benefitted with the Zaver app.

Scope of Fintech app development and apps like Zaver

There are many FinTech startups coming up in the market who have innovative aspects for the payment industry. The credit card industry is one of them. But, since the FinTech apps are supporting cardless payments, these apps are getting more and more popular among people.

There is a lot of scope for fintech app development in the industry. All you need is to hire the right fintech developer and create an amazing fintech app with outstanding features and extraordinary user interface. The apps providing a cheaper rate of interest gain the upper hand in the competition.

Apps like Zaver offering an automated individualized rate of interest based on the entire customer journey can keep more and more customers loyal to them.

Cost of P2P fintech app development

The cost of developing an app basically depends on the hours invested and the features included while creating the app. Here is a breakdown of a P2P fintech app development with us that will give you an overview of the time involved for each module and price charged for the same.

However, this is just a basic overview. Each business in the fintech industry has different needs and we understand the requirements of each of our clients in detail before suggesting them with a peculiar solution. Each P2P fintech app is built differently as the app store does not allow clones of any app to be listed. If you go for some fintech app clone development there is a chance of the app getting deleted from the App Store or you might not get much audience for your fintech app.

We can help you with great P2P Fintech app development for your startup. For detailed information regarding the scope of features and other such queries, please feel free to contact us for a free consultation session.

Our research team keeps updates about each new technology coming up in the fintech industry. We can help you out based on your personalized business needs and get you the best possible solutions for technological problems.

Connect with us through the contact us form for a free demo of P2P fintech app development.

The post 4 features of Zaver app to consider while FinTech app development 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.