White Label Lending Platform Development – Key Factors

It’s costly and time-consuming to get a bank loan. Furthermore, according to worldbank.org, more than 1.4 billion people don’t have any bank account, which means that this unbanked population can’t apply for any bank loan. On the other hand, the market size of P2P lending is expected to reach $804.2 billion by 2030. 

What is Peer to Peer Lending Software?

A Peer to Peer Lending Platform Software is a type of online loan provider in which the lenders and borrowers are connected directly through the blockchain network, with no involvement of any third-party intermediaries like a bank or any other financial service provider. 

In a P2P lending process, the borrowers post the loan application along with their credit profiles, which are reviewed by the lenders. The loan is approved by a lender only if the borrowers appear to be genuine and creditworthy. The best benefit of using Peer to Peer Lending Software is that the platform users pay low fees and get rid of lengthy paperwork that’s required in the banks. 

Owing to the rising popularity of P2P (Peet to Peer) lending, technologists are using their expertise to create White Label Lending Platform to meet the requirements of their clients. Using a pre-built script saves time and development costs. 

What Does Peer to Peer Lending Platform Software Mean to FinTech Businesses?

Let’s find out why are people tending toward using Peer to Peer Lending Software:

• It helps the loan provider to find a huge number of borrowers (or customers) and offers them varieties of easy and flexible financial services that aren’t available with the banks. 
• With Peer to Peer Lending Platform Software, anyone can create a revenue stream that is more steady and lucrative than any bank can offer. 
• There is no risk of losing money because every transaction is managed efficiently through fool-proof smart contracts. 
• Needy business owners or individuals can get loans at lower interest rates and fulfill their requirements with ease. 
• P2P lending is easily accessible to people of different financial statuses. 

More Benefits of Opting For White Label Lending Platform

• Automation Through Smart contracts

Fully supported by smart contracts that help to manage the transaction flow automatically in a frictionless manner. 

• No KYC

There is no need for anyone to update KYC or AML documents for ensuring trust and security.

• Tigher Security

Peer to Peer Lending Platform Software comes with the guarantee of security of data privacy and money movements. 

• Transparency

The transparent mechanism is the backbone of any P2P platform. 

• No Intermediary, No Additional Fees

As P2P lending involves only two parties and no intermediary is required, there is no hidden costs or additional fees. 

White Label Lending Platform Development – Key Factors To Be Considered 

While we are discussing the benefits of using Peer to Peer Lending Software, don’t you feel curious to know how to make one such platform that can facilitate millions of users to get quick loans from anyone across the globe in a hassle-free manner? Let’s find out how to create a White Label Lending Platform:

• Abiding by rules & regulations

As you are going to provide financial services through your P2P lending platform, you must ensure that you need to follow certain rules and regulations as per the law of the country. It will help you to avoid legal complications while operating your lending platform. 

• Registration

You must decide what kind of business model you are going to follow. Whether it will be an LLP or a sole proprietorship? The registration process will vary for different business models. It will also impact the distribution of profits and losses. 

• Decide Company’s Name

The decision about choosing the right name for the company or the Peer to Peer Lending Platform Software is also a crucial step. One should confirm that the trademark name is not already registered.

• Choosing The Right Domain Name

A White Label Lending Platform must have an online presence. Therefore, it is necessary to choose a perfect domain name that can grab the attention of people easily. 

• Prepare A Team of Developers

Now, it’s time to handle the technical part of P2P lending platform development. You need to hire a team of professional developers or choose the right blockchain company for completing each step of application development with utmost perfection.

• Managing Funds

Development of Peer to Peer Lending Software is a costly process, and one needs to manage the funds for that. You can run an ICO to collect funds from serious investors. 

• Start With The Development Process

Once the team of developers is finalized and the required funds are collected, the next step will be to develop a portal. You may start coding right from the beginning or use  pre-built code to develop a  White Label Lending Platform that is fully customized to match your dream aspirations.

• Testing 

When the development phase is over, you will have to ensure that everything is working perfectly fine. Especially smart contracts have to be flawless, otherwise, they might result in a big monetary loss. Testing is all about ensuring security, accessibility, and performance. 

• Launch & Ongoing Updates

It’s the most significant and final step of Peer to Peer Lending Platform Software development. Once the entire platform is coded and troubleshot, it is ready for deployment or launch. However, the process of updates and technical support won’t stop even after the launch. 

Cost of White Label Lending Platform Development

Now, that we have understood the benefits and process of development of a P2P lending platform, it will be equally important to discuss the cost of development. 

Here are the key determinants of the cost of development:

• Company registration fees
• Website design & development, 
• Domain name registration, hosting, and other technicalities.
• Signup/login setup
• Adding features and functionalities
• The technical resources used for the development
• Fees of financial experts that can provide tips for loan management
• Full-stack app development 
• The choice of blockchain 

There can be more factors that can influence the cost of developing a White Label Lending Platform.

Final Words

Are you aware of the benefits of using Peer to Peer Lending Software? Would you like to create a unique Peer to Peer Lending Platform Software that can help borrowers and lenders to perform financial transactions mutually, without involving any intermediate? Antier can help build a White Label Lending Platform in a hassle-free manner. Discuss your ideas today!