One of the most popular tools of business financing is lending. It will always be in demand, but the financing tools and approaches to loans are already outdated.
Most banks and lending businesses use the old algorithm: they request financial information on clients, analyze it, and make a decision. However, the process can be made much more convenient for all stakeholders by loan lending app development. Let’s take a look at why loan lending app development is needed and how much does it cost?
What are the benefits of loan lending app development?
The advantages of automation for banking business processes are in many ways identical to other business areas: streamlining of document flow, significant acceleration of work, transparency and control over departmental work, reduction of process chains. But banking, especially the credit sector, has its unique advantages from centralized work software:
- Reduction of time for decision-making on loan granting (possibility of automated decision-making according to the set conditions).
- Simplification of checks on decisions made, the availability of information on transactions, including for shareholders.
- Control over observance of internal regulations and permanent access to the documentation.
Lending to small and medium-sized businesses is associated with a large flow of incoming documents, which are simultaneously used in different, geographically remote from each other units of the banking structure. Lending automation makes it possible to turn paper documents into index information contained in a business application. Documents (applications, references, questionnaires, passports…) are scanned and forwarded to the legal department, which reviews them in parallel with the security department and risk analysts, after which a summary of the decision to grant credit is made and the package of documents is passed on.
What do I need for loan lending app development?
First of all, you need an idea or rather a concept. Before you start the development, you need to choose the type of application and the problems it will solve. Then you need to analyze the market and understand if your application will be useful. Will you offer users a new functionality or simplify some financial processes? It is not very interesting and profitable to create a copy of something, but to occupy an empty niche sounds tempting.
After that, you need to find a fintech app development company that will create such an app for you. We recommend paying attention to firms that already have experience in loan lending app development. It is also extremely reasonable to look for applicants among offshore loan lending app development companies. Developers from Eastern Europe can be real masters of loan lending app development, and their prices are much lower.
How much does loan lending app development cost?
And finally, let’s deal with the price of the loan lending app development. To find out the cost of loan lending app development you need to know two fundamental indicators to easily calculate it. The first is the cost of one loan lending app development specialist for one hour. In the United States and Western Europe, this figure is around $ 70. The second is the number of hours spent on the loan lending app development. Based on the experience of Perfsol fintech development company, we can draw the following picture:
- FE: up to 240 hr/mo
- BE: up to 240 hr/mo
- PM/BA: up to 80 hr/mo
- UI/UX: up to 80 hr/mo
- QA: up to 80 hr/mo
- DevOps: up to 80 hr/mo
Based on these figures the final price tag for loan lending app development will be about $50-80 thousand. Looks pretty expensive for a startup, but you do not need to order the loan lending app development in the USA. There are offshore loan lending app development companies that offer the same level of quality at much lower prices. For example, if you apply to a loan lending app development company in Ukraine, you can reduce the amount by almost half. If the cost of an hour of work of a specialist is $ 40, then loan lending app development will cost you about $ 30k.
The business gets rid of the routine manual labor and human error, and instead gets more transparent reporting, better control, access to documents at all levels, and a streamlined system of regulations. At the global level, it increases service quality and customer loyalty, saves labor costs, and increases productivity, that is, the profitability of the enterprise. Subsequently, it gives the company engaged in loan lending app development a competitive advantage and allows it to become a market leader. It isn’t difficult to achieve this. Just contact Perfsol and our loan lending app development specialists will create a fast, convenient and functional app for you.