Tag:

iScripts SocialWallet

How to Make Your P2p Lending Platform Competitive

by Noyal Sharook July 24, 2023

Over the past decade, Peer-to-Peer (P2P) lending platforms have taken the world by storm, disrupting traditional lending models and revolutionizing the way individuals and small businesses access funds. These platforms emerged as a viable alternative, presenting a decentralized and community-driven solution that leverages technology to enable faster & easier transactions.

Before getting into the nitty gritty of online P2P lending businesses, it’s essential to understand how it works, connecting people across the globe. In essence, Peer-to-Peer (P2P) lending is a way for people to borrow and lend money directly to each other, without involving traditional banks or financial institutions. To put it more simply, it’s like borrowing money from a friend or lending money to someone you trust, but on a larger scale and through an online platform. P2P lending platforms are websites or apps that connect these borrowers and lenders together.

Initially, the borrowers post loan requests on these platforms, stating the amount they need and the interest rate they are willing to pay. Lenders, who can be individuals or groups, review these loan requests and decide if they want to lend money to the borrower. Once enough lenders come together to fund a loan, the borrower receives the money, and they repay it over time with interest. The platform facilitates the entire process, ensuring lenders and borrowers can connect safely and securely.

In a constantly changing digital world, P2P platforms continue to grow with it, challenged at each step, which calls for a greater need to remain ahead of the competition. In this article, we take a look at the significance of competitiveness and the ways through which you can build a great product that stands out. Read on.

THE ROLE OF COMPETITIVENESS IN P2P LENDING PLATFORMS

Now that P2P lending has grown drastically, it has pushed a lot of entrepreneurs to take advantage of the ample business opportunities that came with it and so, a lot of new players have entered the market. This number is only expected to grow in the coming years as the P2P lending market is expected to reach $1 trillion by 2025.

The success of any P2P lending business hinges on its ability to meet the ever-changing expectations of its user base. As these platforms gain popularity, users become more selective and demand superior experiences. Whether it’s faster transactions, more secure payment methods, or personalized recommendations, meeting and exceeding user expectations is paramount. Failing to do so can lead to less user engagement and loss of trust, gradually pushing the users to switch to other competitor platforms.

Additionally, the technology landscape is in a constant state of flux. New technologies emerge regularly, offering enhanced functionalities and improved user experiences and so, P2P platforms must invest in research and development to leverage these advancements. For example, the integration of blockchain technology in peer-to-peer lending transformed the way transactions took place. The decentralized nature of blockchain ensured greater transparency and security in transactions, instilling trust among users and minimizing the risks associated with traditional financial systems.

Furthermore, security concerns remain a significant hurdle for P2P platforms. Users entrust these platforms with their personal information and financial data, making security breaches a severe threat. To retain user trust, platforms must employ robust security measures, including encryption protocols, two-factor authentication, and rigorous data protection practices.

To remain competitive and relevant, these platforms must focus on meeting user expectations, embracing technological advancements, prioritizing security, diversifying offerings, enhancing user experiences, and maintaining competitive pricing. This calls for a greater emphasis on striving to be competitive, and securing their position in the market in the midst of a continuously evolving digital landscape.

HOW DO YOU MAKE YOUR P2P LENDING PLATFORM COMPETITIVE?

Building an online marketplace lending platform involves implementing strategies and features that set it apart from other platforms in the market, attract borrowers and lenders, and ensure a positive user experience. Here are some key steps to make your P2P lending platform competitive:

1. Emphasize User Experience

User experience is a critical aspect of any successful P2P lending platform. To prioritize user experience, conduct regular usability testing and gather feedback from users to identify pain points and areas for improvement. Based on this feedback, optimize the platform’s user interface and functionality to make it more intuitive and user-friendly. Secondly, a responsive design is crucial for providing a smooth experience on various devices like desktops, laptops, tablets, and mobile phones and a user-friendly platform encourages users to stay engaged and come back for future lending or borrowing needs.

2. Robust Security Measures

Security is an integral component in P2P lending, as it involves sensitive financial data and transactions. To maintain trust and credibility, implement and regularly update robust security measures. This includes employing strong encryption protocols to safeguard user data and financial information. Consider conducting third-party security audits to identify and address potential vulnerabilities. Additionally, provide educational resources to users on best security practices, such as using strong passwords and avoiding sharing personal information. Clear communication about your platform’s commitment to data privacy and security builds confidence among users, leading to increased participation.

3. Offer Competitive Rates and Terms

To attract borrowers and lenders, it is essential to offer competitive interest rates and flexible loan terms. Conduct thorough market research to understand the prevailing interest rates and lending trends in the industry. This knowledge will allow you to set rates and terms that align with borrowers’ expectations and offer attractive returns for lenders. Consider introducing loyalty programs or referral incentives to encourage repeat business and word-of-mouth promotion among users. A competitive pricing strategy ensures that your platform remains appealing in a market with various lending options.

4. Diversify Loan Listings

A diverse range of loan listings on your peer-to-peer lending platform software will cater to a broader audience and attract more users. Actively reach out to potential borrowers from different demographics and geographic locations to ensure a diverse pool of borrowers. Collaborate with organizations or associations to promote specialized loan categories, such as sustainable initiatives or educational projects. Providing a variety of loan options allows borrowers to find loans that suit their specific needs and encourages lenders to diversify their investments.

5. Provide Transparent Information

Transparency is key to building trust among users. Create straightforward loan listing templates that ask borrowers for detailed credit information and loan needs. Clearly communicate all terms and fees to both borrowers and lenders. Transparently sharing fee structures helps lenders make better investment decisions by understanding potential returns and costs.

6. Offer Excellent Customer Support

Providing excellent customer support is crucial for user satisfaction. Set up multiple communication channels, such as live chat, email, and phone support, to accommodate users’ preferred methods of reaching customer service. Train customer support representatives to be knowledgeable about platform features, loan processes, and potential issues. Prompt and helpful customer support can resolve users’ concerns, build trust, and promote positive word-of-mouth referrals.

7. Engage in Better Marketing and Outreach

To attract users to your platform, invest in marketing efforts and outreach activities. Collaborate with influencers or industry experts who can promote your platform to their followers. Utilize digital marketing strategies, such as social media campaigns and content marketing, to reach a broader audience. Partner with relevant organizations or associations to reach potential borrowers and lenders with specific interests or needs. A great marketing campaign can differentiate your online P2P lending business in the competitive market, attract more users, and create a positive outcome.

FINAL THOUGHTS

As we mentioned at the beginning of this article, the success of a P2P lending business relies on meeting users’ changing expectations. The points discussed above are on a foundational note and a more nuanced list of steps might benefit you better as each platform varies with different features and functionalities. However, these foundational steps are the cornerstone of any successful online P2P lending business and must be focused on each part of your journey.

When starting out, it’s best to go with a platform that has taken all of these points as its core values. Check out iScripts SocialWallet, a unique software solution that helps you build an online peer-to-peer money lending platform efficiently. As the owner of an online P2P money lending platform, you have the opportunity to use a marketplace that brings together people who need credit and those who are willing to lend, all in one place.

Looking to get started? Try out our Free Demo here.

Check out iScripts SocialWallet

0 comment

Startups

Best P2P Lending Apps & Networks Today!

by Mariya Parackal April 25, 2023

written by Mariya Parackal

Peer-to-peer lending, commonly known as P2P lending, refers to lending money to businesses or individuals using online media that link lenders and borrowers. The primary goal of P2P lending is to increase lenders’ profits while decreasing borrowers’ interest rates. In addition, because P2P lending is online, it also helps to deliver rapid and straightforward loans.

The number of new participants in the peer-to-peer (P2P) lending sector has increased dramatically in recent years. For example, according to Business Today, Faircent, a P2P lending service, has already disbursed 1145 crore loans in FY2021 alone, representing an almost 24 percent rise in disbursals. According to financial analysts, the surge in P2P lending is due to the excellent yields of 14-16 percent p.a. compared to other asset classes.

This article will cover a list of the top 9 online P2P lending apps and networks today:

Upstart
Commonbond
Pagaya
Sofi
Zest AI
Amount
Zirtue
Prosper
Peerform

1. Upstart

Upstart, founded in 2012, is a well-known peer-to-peer lending platform software that has already funded millions of dollars in P2P loans and is still growing. To thoroughly verify all debtors, Upstart employs a simple scoring algorithm. However, the majority of borrowers on the site are younger and have minimal credit and employment histories. Upstart is one of the most reliable peer-to-peer lending platforms that offer high-quality lending services to its clients.

Upstart needs a minimum investment of $100 and charges an annual fee of 0.5 percent. It also gives investors the ability to diversify their holdings. Investors must be accredited, which means they must earn at least $200,000 per year.

2. Commonbond

CommonBond is a significant financial technology firm located in New York that provides consumers and businesses with a range of student loan-related solutions. More inexpensive, open, and straightforward solutions to pay off student debt help consumers. To expand their companies with Millennials and Gen Z, firms benefit from tech-forward acquisition and engagement skills.

Financing loans isn’t easy; there are several levels of operational overhead, procedures, and approval processes to deal with on the backend. In addition, these procedures must balance speed and efficiency with rigor and transparency due to stringent laws and compliance requirements.

3. Pagaya

Pagaya Investments was established in 2016, is a financial technology firm redefining the asset management industry by managing institutional money with machine learning and big data analytics. Pagaya provides discretionary funds to institutional investors such as insurance companies, pension funds, and banks, focusing on a fixed income and alternative credit.

Pagaya’s proprietary technology platform, Pagaya Pulse, uses a combination of artificial intelligence and cutting-edge algorithms to provide a continuously high and scalable performance advantage.

4. Sofi

Sofi began as a peer-to-peer lender for student loan refinancing in 2011 but has now expanded to include personal loans and home loans.

This renowned website provides borrowers and investors attractive rates, with typical APRs ranging from 5.99 percent to 20.89 percent. Variable-rate loans have a maximum APR of 14.95 percent. The typical loan period ranges from 24 to 84 months.

Personal loans have a maximum value of $100,000, but they are only available to borrowers who fulfill tight qualifying standards (high or exceptional credit scores). As a result, there is a minimal probability of defaulting on a loan with high-quality borrowers.

5. Zest AI

Douglas Merrill invented Zest AI in 2009. Zest AI provides credit underwriting services that use big data analytics to assist lenders in making more accurate loan decisions. As a result, zest helps lenders make better assessments and loans, boosting income, lowering risk, and automating compliance.

Zest software enables banks and credit unions to uncover good borrowers typically ignored by standard credit scoring procedures by going beyond the statistical and data restrictions of traditional credit scores. On average, banks, credit unions, and enterprises that use Zest-built models have experienced a 20% improvement in approval rates with no additional risk.

6. Amount

Amount is a financial technology firm that was formed from disruption and is designed for speed. Amount adapts and evolves to enable your digital transformation. Its financial sector knowledge adds benefit in areas such as compliance requirements, revenue, operations, and more. Their mission is to help banks and financial institutions of all sizes swiftly improve their digital agility and energize positive change in how they offer value, impact, and relevance to clients.

7. Zirtue

Zirtue is a mobile relationship-based lending app that automates ACH loan payments for loans between friends, family, and trusted contacts. Both parties agree on a loan payback plan, and payments are made automatically through the payer’s bank account, eliminating the discomfort of requesting repayment. Zirtue, based in the United States, has seen a 60 percent increase in month-over-month growth as they aim to make the globe more financially inclusive. There are no costs associated with using Zirtue. However, a 5% annual percentage rate is sent to the borrower for the loan duration.

8. Prosper

Prosper, which was founded in 2005, was the first peer-to-peer lender in the United States. Since then, it has distributed approximately $19 billion in funds to over 1 million borrowers. Prosper is a pioneer of the peer-to-peer lending marketplace.

Investors can check their investment performance and manage their portfolios using Prosper’s mobile app. According to the site, around 84 percent of all investors attained or exceeded their anticipated return on investment. Furthermore, the average return on investment is 5.5 percent.

9. Peerform

Peerform was formed in 2010 by Wall Street professionals with banking and technological skills. They founded the platform after noticing that traditional lenders, such as banks, were hesitant to make loans to individuals and small company owners.

The solution was to establish a peer-to-peer lending network that would connect loan investors and borrowers. This would also allow investors to earn far greater interest rates on their assets than they could with standard bank investments such as money market accounts, savings accounts, and certificates of deposit.

Conclusion- Best P2P Lending Apps

These are all the top top peer-to-peer lending apps and networks available to today. As a borrower and as an investor, there is a decent mix of possibilities for peer-to-peer lending. Peer-to-peer lending is becoming a more practical alternative for those who need money and people who want to invest their money as it grows in popularity.

If you are in search of creating an online lending platform similar to Prosper, Peerform, etc then we can help you in building a similar one. We have an open-source peer-to-peer lending software for businesses called SocialWallet.

Check out iScripts SocialWallet

0 comment

Customer

Top 11 Fintech Businesses in the USA in 2022

by Mariya Parackal March 2, 2023

written by Mariya Parackal

The word –fintech- is an amalgamation of the terms ‘finance’ and ‘technology’ and refers to any business that co-opts technology to enhance or automate financial services and processes. It is an all-encompassing lexicon that includes the rapidly growing financial industry that serves both the interests of customers and businesses in a myriad of ways. It is noteworthy to highlight that the influence and importance of fintech business has skyrocketed in recent times and innovation is a common theme in every niche – from payments to loans and credit scoring.

It should not come as a surprise when we say that the USA is the hub of the fintech revolution. With 1491 startups and an investment of USD 58.5 billion, America is at the forefront of the global fintech trend. So, without further ado, let us look at eleven of the best fintech businesses based in the United States of America.

Top 11 Fintech Business in USA:

Stripe
Klarna
Kraken
Chime
Plaid
Robinhood
Brex
Carta
Gemini
Hippo
Wise

#1 Stripe

It is an Irish-American fintech company founded in 2011 by brothers Patrick and Collision. Stripe is an online payments processor that serves some of the biggest companies in the world. Simultaneously, several small and medium-sized businesses also opt for the services of Stripe, thereby becoming a ubiquitous presence in the global fintech industry. The company’s current value is USD 95 billion, and it has tripled its valuation from 2020.

#2 Klarna

Founded in 2005 by Sebastian Siemiatkowski, Klarna offers fintech services like direct payments, pay after delivery services, investment plans, and likewise to its clients. Currently valued at USD 45.6 billion, Klarna has now transformed into one of the most extensive banking ecosystems in Europe, with 250000 merchants and more than 90 million customers. Thus, Klarna undoubtedly deserves a sweet second spot on our list of best fintech companies in the USA.

#3 Kraken

It is a crypto exchange mega-corporation premised in San Francisco, USA. Since its inception in 2011, Kraken has become a stalwart presence in the global fintech scenario with a current value of USD 10-20 billion. As of now, Kraken serves 176 countries and enlists 95 cryptocurrencies for sale.

#4 Chime

Also headquartered in San Francisco, Chime is a fintech company that has witnessed explosive sales and growth in the past year. Chris Britt and Ryan King established Chime as an alternative to traditional banking services in 2013. The company provides a debit card with no annual or overdraft charge, which can be a factor affecting its massive boom. As of February 2020, Chime had 8 million account holders, and its valuation has experienced a four-fold jump from 2018 to 2019.

#5 Plaid

Founded in 2013 by Zack Perret and William Hockey, Plaid is a fintech company that fosters communication between financial services apps and users’ banks and credit card providers. What Plaid does is keep its user’s login information private and secure while they are making a bank transaction. Plaid utilizes state-of-the-art encryption protocols to protect users’ information and data. The company’s valuation stands at USD 200 million as of 2019.

#6 Robinhood

Premised in Menlo Park, California, Robinhood is a fintech company known for pioneering commission-free stock trades, cryptocurrencies, and exchange-traded funds via a mobile phone app. The company’s current valuation is USD 6.7 billion and has a user base of 31 million people. Moreover, more than one million people are on a waitlist for its cryptocurrency wallet.

#7 Brex

It is another fintech company with its roots in San Francisco, California. Brex was founded in 2017 as a fintech company that provides business credit cards and cash management accounts to technology companies. In April 2021, the valuation of Brex stood at USD 7.4 billion after it completed a whopping USD 425 million funding round led by Tiger Global.

#8 Carta

Established in 2012, it is a Palo Alto-based financial technology firm. It was Manu Kumar and Henry Ward who set up Carta, which is known for its valuation software and management of capitalization tables. A real-time view of firm ownership helps employees, companies, and investors manage their equity. Before an initial public offering (IPO) or acquisition, shareholders will be able to sell their CartaX shares on Carta’s stock market, which started in January 2021. A total of $100 million in Carta’s shares was sold through the company’s exchange. Carta’s current market capitalization is USD 7.4 billion. “

#9 Gemini

It is one of the earliest cryptocurrency exchanges to launch seven years ago. Gemini currently processes USD 30 billion in transactions each year. It has a valuation of over USD 5 billion each.

#10 Hippo

It is a fintech company that streamlines home insurance applications and claims and processes by leveraging tools like satellite imagery, AI, public data, and so forth. Hippo’s services are now available to more than 70 percent of US homeowners.

#11 Wise

Founded in January 2011 by Kristo Käärmann and Taavet Hinrikus, Wise offers online international money transfers to customers at an average fee of 0.7 percent compared to the conventional USA bank rate of 3 to 4 percent. Wise’s revenue has grown exponentially in the last few years, and it currently reports 10 million users.

In conclusion, the fintech industry is in its prime right now. iScripts’ newest ground-breaking innovation – SocialWallet, is a Peer to Peer lending platform that acts as the ideal intermediary between individuals in need of credit and individuals or institutions willing to lend within a single window. The platform allows users – both borrowers and lends – to manage loan requests and listings, front-end content, payment flow, commission fee, interest rate, and so forth. Thus, SocialWallet is an ideal trajectory to operate your fintech business.

As we have already mentioned, the fintech industry is experiencing its heydays, and therefore now is the time to indulge, engage, and invest in a fintech business. SocialWallet by iScripts enables users to operate their fintech business through two distinct models – the Prosper Model and the Kiva Model. The former is an online business model wherein users interact in transactions, generating revenue by charging the users a fee or commission. Likewise, the Kiva Model is for crowdfunding loans and unlocking capital.

If you are on the lookout for creating a similar deliverable application for your company. Please feel free to contact us on 312-423-6728 or compose an email containing your business requirements and budget to sales@iscripts.com receive the best digital solutions for your company. Get a free consultation from our technical team at iScripts.

Check out iScripts SocialWallet

0 comment

Startups

Fintech Clone Scripts: Usage and Examples

by Mariya Parackal February 25, 2023

written by Mariya Parackal

Fintech, the word, is a combination of ‘financial technology’. It is well explained as any company that provides financial services through software technology or other technology, cloud services include anything from mobile payment apps to Cryptocurrency.

In the beginning, It was a technology that applied to the back-end systems of banks or other financial institutions. Later it was expanded to encompass a wide range of applications that are more consumer-focused.

In 2020, managing funds, trade stocks, payment for food, or managing insurance are at our fingertips. As time passed, fintech was able to change the way how consumers track, manage and facilitate their finances.

It was estimated that there are nearly 2 billion people without bank accounts in the world. Fintech has been developed into a large technological community that provides ease of accessing their finances without depending on any conventional banking industries and hence giving out a choice to directly access to their financial life.

How Does Fintech Work?

Financial Technology companies are ones that bring technology to the world of banking and financial transactions. This could be by changing the way that people pay for goods or services – or by providing online functionality to investing or lending.

The financial technology varies from project to project and from application to application. The advancements in fintech are utilizing machine learning algorithms, blockchain, and data science to do everything from the process.

Fintech companies integrate technologies like AI, data science into traditional financial sectors. This makes the sector safer, efficient, and fast. Thus it became one of the fastest-growing tech sectors.

Here are some examples of Fintech.

Top Fintech Industry Examples

Traditional companies and banks are constantly adopting fintech services for many purposes. Let’s look at how the industry is both disrupting and enhancing some areas of finance.

1. Crowdfunding Platforms

Crowdfunding platforms allow users to send and receive money. Individuals and businesses are allowed to pool funding in the same place from different sources.

Instead of asking for a loan, it is better to ask investors for the support of a company or a project. When the applications range from family-friends to the next level, it may multiply the number of crowdfunding platforms.

2. Blockchain

Blockchain and Cryptocurrency are controversial uses of Fintech. Cryptocurrency exchanges will connect users to buy or sell bitcoin. Blockchain services keep provenance data and help to reduce fraud.

3. Mobile Payments

Everyone with a smartphone is using services to exchange money and online payments. Mobile payment business with Apple Pay and Alipay are examples.

4. Insurance

Fintech has even disrupted the insurance industry. Insurance and technology have combined for the formation of Insurtech that lies behind the creation, distribution, and administration of insurance business. Insurtech is now including car, home insurance to data protection. Insurtech startups are attracting funding and many more for business growth.

5. Stock-Trading Apps

The most popular innovation in fintech is the development of stock-trading apps. Once the investors had to go to the stock exchange directly, but today the investors can buy and sell stocks in taps of a finger. Investors are able to invest from anywhere with any budget. Robo-advising has increased efficiency by providing algorithm-based asset recommendations and portfolio management.

6. Budgeting Apps

The most common use of fintech is budgeting apps for consumers. Consumers had to create their own budgets, checks, and spreadsheets to track their finances. After the development of financial services apps, consumers are able to track their income and expenses efficiently. Budgeting apps like Intuit help consumers to track their complete monthly payments.

7. Banking

In the world of personal finance, consumers are demanding to get easy access to their bank accounts. Thus, mobile banking has become a major part of the fintech industry. Now, most of the banks offer mobile banking features.

8. Investments and Savings

In recent years, fintech has introduced investing and savings app. Both are different in approach but use a combination of savings and investments.

9. Machine Learning & Trading

It’s not a surprise that machine learning is playing an important role in fintech. AI has the ability to run massive data through algorithms to spot trends and risks.

10. Lending

Billions of people are now able to apply for a loan from their mobile devices. Customers can request credit reports without any change in their score. This makes the entire world of lending more transparent to everyone. Fintech is also maintaining the risk assessment, approval process, and easier access.

Fintech: Best Websites and Apps

Before Creating a Fintech planform website or app yourself, it is best to understand some of the top platforms that are available in the market today. Here are a few examples:

Kiva

Kiva is a peer to peer online microfinance platform which focuses on allowing individuals and small scale business individuals to contribute and uphold low-income entrepreneurs. Kiva will help each entrepreneur to hike their business to the next level by providing 0% interest in loans and this is the main aim of Kiva. Someone starting a business can raise money for all business activities such as equipment, marketing, investments with Kiva loans. Are you interested to build an app using Kiva Clone Script?

Stripe

Stripe is an online payment processing platform and the world’s most valuable fintech company. Its software platform accepts online payments from small to large websites. Now It offers corporate credit cards and small business loans to online companies to help them grow their businesses. See the working of Stripe. Now it’s easy to develop an online payment platform using Stripe clone script.

Gofundme

GoFundMe is the world’s largest social fundraising platform that allows people to raise money for any events. Users can create their own website with the money they have raised. At this process, users can describe their fundraising causes and how much you hope to raise, and then explain why you need money with pictures and videos. Once you create the website, GoFundMe allows you to share it in social networks. Then the people can donate to the users using a debit card or credit card through the website.

Mint

Mint is a free, web-based personal financial management service. It allows users to track bank, credit card, loan balances, investments, transactions, and can effortlessly manage all in one place. It is free and easy to use. Every US financial institution is connected with Mint so that you can easily track where your money is going. It gives you proper updates from bank accounts and credit cards.

Fintech Clone Scripts Example: iScripts SocialWallet

iScripts SocialWallet is an excellent fintech clone script for non-tech entrepreneurs looking to create an online lending platform similar to Prosper or Kiva. This script provides both web and mobile platforms for end-users, making it easier to connect people and facilitate lending transactions. iScripts SocialWallet is a powerful and highly configurable script that enables individuals to borrow and lend money without intermediaries, making it a cost-effective solution for those who are struggling to make ends meet.

The benefits of iScripts SocialWallet are immense, as it provides a ready-made solution for building a P2P lending platform that is secure, reliable, and easy to use. With its robust features and user-friendly interface, iScripts SocialWallet can help you to build a fintech business that stands out from the competition and provides value to your customers.

If you’re interested in creating an online lending platform, iScripts SocialWallet is the ideal fintech clone script for you. Contact iScripts today to get a free consultation from their technical team, who can provide you with the best digital solutions that meet your specific business requirements and budget. With iScripts SocialWallet, you can build a fintech platform that is innovative, efficient, and profitable.

Check out iScripts SocialWallet

0 comment