Money Lender: Online P2P (peer-to-peer) Platform. Case Study

Recently our team was engaged into development an online p2p (peer-to-peer) platform. That kind of business corresponds to electronic online platforms which consolidate lenders (investors) and borrowers. When it comes to small amount of lending solutions, people try to avoid cooperation with banks. The reason is that banks usually cannot accommodate the needs of the prospective borrower like specific a money lending business. Since more than 60% of all conventional loan applications are rejected by banks, business owners are forced to look at alternative lending methods. This is where having additional lending offer became vital important.

At Money Lender we believe technology can change people’s perception of even the most conventional financial products by making them simpler and more accessible. The main objects we followed are:

• Provide investors with a financial instrument that has high yield and flexible liquidity.
• Provide borrowers with a facility to obtain an immediate loan for an agreed terms and conditions.

How it works

Money Lender app offers an in-depth finance training program that provides users with reliable tools to loan/earn money. For example, a client requests a loan, and borrower gives the amount requested, with an agreement that as the client’s project/purchase matures. As an investor you will be getting a return of the initial investment plus the agreed upon interest over the payment period (which is usually done over a period of years). Money Lender gives the tools people need to make a loan, plus one-on-one support 24/7 from the professional staff. In addition to all of this, Money Lender also needed to keep up with insurance policies. That’s why when structuring a loan; every borrower will need to add to their policy. This way, if something happens to the assets used for collateral, the reimbursement check will be sent to investor.

Peer-to-peer lending app Money Lender works on a simple model, people sign up to the platform as either a borrower or a lender. The borrower submits an application for a loan. The lending platform leverages technology and online data to quickly assess risk, figure out a credit rating and assign an appropriate interest rate. This whole process is completed within hours or even minutes. Now the loan is available for investors to fund. Investors can be individuals, private companies or financial institutions and typically invest in many different loans to spread their risk.

We built a Money Lender application that would constantly listen to the Database and queue each update into message queue. Then we implemented a worker mechanism with scheduling and decay algorithms. After multiple iterations of the User Interface and various rounds of A/B testing, we achieved a huge decrease in the loan application drop-off rates — one of their biggest challenges.

- Peer-To-Peer Matching

Matching people who want to invest, with people who want to borrow. It’s an efficient model that allows funds to flow directly between investors and borrowers without the need for a traditional. Financial intermediary, giving everyone a better deal.

- Simplified User Onboarding

Mulitple iterations on the user onboarding process coupled with extensive and in-depth A/B testing resulted in one of the lowest drop off rates seen in the Fintech industry. Easier onboarding process equals happier users, meaning a lot more business!

- Interface

Black & white shades are focused on information at a glance. Combination of light and dark color schemes is preferred in more complex designs for financial apps like ours. It makes common tools such as transparencies for notifications and other layered elements more user-friendly. Darker color schemes tend to function best in simple environments where there are many other things to do, interact with or look at. So, in order to focus on applying business solutions for loans, we gave dark background for investor’s side. Borrower’s app has light overlook; it means transparent moves and decisions.

The Future of p2p (peer-to-peer) Platforms

According to the growing popularity of lending services, P2P lending looks set to continue in the near future. There are several factors that will determine the pace of growth including regulation in different markets, how the banks respond to this competition, and the overall shape of the global economy as determined by interest rates and employment figures. Our team will assist such kind of businesses with a great pleasure, contact us and together we will find the best solution.