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P2P Lending Market Overview

Peer-to-peer or (P2P) lending models have experienced massive growth over the past few years. The fast-paced technology-based lending frameworks will continue to grow in the future, considering the immense utility they attempt to provide.

The leading consulting company PwC predicts in its recent researchthat the valuation of the global P2P lending market will reach $150 billion by the year 2025. Does this imply that potential borrowers will gradually abandon centralized banking models and embrace intermediary-free P2P models? This decisive question is going to impact the number of P2P lending software that will emerge in near future.

What is P2P lending Software?

The peer-to-peer lending mechanism enables creditors and borrowers to interact and transact directly without third-party intervention. The platforms dedicatedly built for such execution are known as P2P lending software.

The elimination of intermediaries slashes the interest rates for borrowers and amplifies profits for lenders or investors. Also, setting up a bank can be a pricy pleasure since it involves renting/purchasing premises, hiring staff, acquiring expensive licenses and buying special computer equipment and software, etc. So, a peer-to-peer lending model offers a better bet to lenders, borrowers as well as platform owners.

How to Build a Successful P2P Lending Software in 2022?

Many P2P lending platforms are rapidly emerging considering the profitability potential and success of independent lending models among investors and borrowers. To get a competitive advantage and every chance of success, the entrepreneurs looking to launch into the industry must build a reliable, comfortable, secure, and multi-lingual peer-to-peer lending software.

8 Steps to build your own peer-to-peer lending platform in 2022

– Conduct Market Research

It is integral to know the market inside out before you plan to build P2P lending software that appropriately targets the audience and performs all the desired functions to disrupt the market. Explore the influential businesses of the niche and analyze the characteristics that brought them to the top. Carefully bringing out their downsides and innovating on eliminating those in your business can help you build the best P2P lending platform for your customers.

– Settle on a business registration form

You would need to figure out the form in which you wish to register your business as a legal entity. This choice between LLC (Limited Liability Company) and the corporation would rule out the amount of imposed taxes, tax and accounting reporting requirements, circulation of profits and losses, and your responsibility as a business towards customers during bankruptcy or force majeure.

– Get a remarkable domain after getting the business name registered

Register a name that enables customers to comprehend the scope of business activities and its form, after clearance from patent and trademark authorities of your state. It is integral for businesses to take into consideration the different rules for registration pertaining to specific states. After the name, decide on a recognizable, unique domain that abbreviates your business name.

– Decide if you wish to develop from scratch or use a White Label Lending Platform

The decision made at this point would impact the budgetary, resource, and managerial requirements. If you wish to build a P2P lending platform from scratch, you would need a big budget, an abundance of resources, and an in-depth knowledge of the peer-to-peer lending platform development to monitor the process.

– Find a Reliable Team of Development Specialists

Building P2P lending software is not easy. You would need an experienced team of experts excelling in blockchain development, dedicated marketing, and pre and post-development advisory and support. A great technology partner might also help you decipher if a white label P2P lending platform or custom development is suitable for your business needs and plans.

– Strategize for Fund-raising if you don’t have enough budgets

After taking a price quote from a dependable development company, you can now strategize how you would raise funds for the overall requirements of your project. You may plan an ICO/STO, attract angels for venture capital, or take a bank loan. If you are depending on the right consultancy provider, they may also assist you to figure out all the integral costs and the best way for fund-raising.

– Make sure that a thorough testing regime is followed

The number of customers drawn toward your P2P lending platform depends upon the security, usability, and performance of the peer-to-peer lending platform. In case, you decided to build your platform from scratch, you might need to get rigorous testing done before the launch. But if you chose for white label lending platform from a reliable technology provider, these things must be considered at the very beginning (during the analysis of various white label p2p lending platforms).

– Launch Your P2P lending software

Finally, launch your incredible peer-to-peer lending software and get started with your marketing and branding plan.

Conclusion:

For entrepreneurs planning to enter the P2P lending market, it is essential not only to build a platform that is better than competitors but also to break into the market at the most opportune time.

A white label P2P lending platform can help businesses enter as early as possible and gain the first-come-first-served advantage. Antier Solutions, being a comprehensive consultancy solution provider caters to businesses with diverse requirements by offering strategic on-demand P2P lending software development services as well as robust white label lending platform solutions.

Schedule a free demo of our white label P2P lending platform or connect with our subject matter experts to share your needs.