February 19, 2025
How to Build a Money Lending App in 2025: Key Steps, Legal Aspects, and Must-Have Features
Many financial institutions continue to use ready-made solutions that do not fully meet the needs of modern clients. For example, procedures such as obtaining and approving a loan often require the borrower's physical presence. This creates barriers to quick and convenient access to financing, as physical presence only contributes to the development of bureaucracy, not the complexity of processes.
Financial institutions lack comprehensive digital solutions to automate and simplify lending. Numerous documentation and reporting, on the contrary, can shake the client sector. That is why now is the most favorable time to develop effective solutions in the field of money lending that will help optimize this process and make it more accessible to users. Also, this will significantly increase accessibility for foreign clients and improve the company's rating. A strategic market research report, for example, confirms this, predicting that the global market for digital lending platforms will grow by 25.9% in 2022-2030.
LendTech Market Segmentation: Key Directions
Since LendTech solutions are functionally adapted to the specifics of financial models and target audiences, banks, microfinance organizations, and fintech companies have long been using digital platforms to automate credit processes, increase efficiency, and improve customer experience.
The financial sector's opportunities focus on the main categories of LendTech products, which are most relevant in 2025 and affect the transformation of the lending market. Therefore, let's take a closer look at the main types of LendTech apps.
Peer-to-Peer (P2P) Lending
These online platforms' main target audiences are borrowers and private lenders or investors. Using such platforms, borrowers can obtain loans at more favorable rates, and lenders can earn interest on their investments.
A lending app of this type may contain the following components:Ā
- P2P Lending Marketplace (represented by a web or mobile application) with a borrower and lender matching system.
- Borrower and lender accounts for tracking applications and repayments
- Automated risk scoring and assessment system
- Integration with payment systems and wallets for interest accrual.
Therefore, developing money lending apps in this area can guarantee a convenient ecosystem for the interaction of borrowers and lenders, simplifying the lending process through automation and digital technologies.
One such case is CoinLoan, a cryptocurrency lending platform developed by the Artkai team. This project demonstrates many components, such as fast verification, fast loan processing, flexible choice of lending terms, and the possibility of long-term repayment. The detailed review explains all this further.Ā
Digital Consumer Lending
This type of solution is designed for personal loans or online installment loans. In general, lending applications are developed using alternative data to credit scores. This approach can ensure faster application approval and a transparent digital registration process.
Therefore, if your priority is money lending app development of this type, it is important to consider current trends and features of financial technologies to ensure further compliance with regulatory requirements for a successful product launch.Ā
If your business wants to create a money lending app, it is essential to implement the following core components:Ā
- Loan application portals with a fast initial approval function are available in a lending mobile app.
- Credit scoring modules for integrating external data sources
- Electronic signature with the ability to upload documents for verification.
- A loan repayment dashboard with reminders, automatic payment debits, and transaction history.
A mobile loan app of this type can significantly simplify obtaining a loan, as all the necessary functionality will be available online without requiring numerous applications to financial institutions.
SME & Business LendingĀ
A relevant option for financing SMEs. As such, mobile lending applications provide the possibility of term loans, account financing, lines of credit, or cash flow-based lending. Developing lending programs at this level can provide faster access to funding than traditional banks
Must-have functionalities:Ā
- Business loan application portals that allow users to upload financial documents.
- Invoice finance and factoring tools, such as automatic checks or discounting.
- Business credit line dashboard with a loan calculator.
- Risk and financial analysis modules for assessing SME creditworthiness.
Lending platforms and apps for businesses can enable small and medium-sized businesses to obtain financing faster and many times easier than in conventional retail banks. They automate key processes, reduce application processing time, and provide flexible lending terms for development.
Mortgage & Real Estate Lending
Applications of this type are used in the mortgage and real estate finance subsector. Such platforms can automate key processes, ensure regulatory compliance, and increase borrowers' convenience.Ā
Before money lending app development in the mortgage and real estate sector, it is worth focusing on selecting automated risk assessment algorithms and further integration with financial institutions. Ultimately, this will yield positive results since the security of the user and internal and external processes should come first.Ā Ā
Planning to create a money lending app for this segment, recommended with the development of:Ā
- Mortgage Origination Platforms are used for the complete cycle of the mortgage process, including application, underwriting, pre-approval, and approval.
- Property Appraisal and Valuation Integrations - special digital automatic valuation tools.
- Loan Closing & E-signature Features functionality that allows borrowers to sign documents online.
- Refinancing and Mortgage Servicing Portals provide portals for mortgage management, with payment monitoring, amortization schedule viewing, the ability to submit refinancing requests, and debt control.
Thus, a loan lending mobile app aimed at providing such tasks can significantly simplify acquiring personal loans for customers, thereby increasing the profitability and rating of the financial institution that will facilitate this process.Ā Ā
Student Loan & Education FinancingĀ
Developing a loan program to finance education can help students and their families get a quality education. This mobile lending application integrates with universities and educational institutions to support documentation, greatly simplifying administrative processes.Ā
Main components:Ā
- Student Loan Application Portals are unique digital solutions for educational loan applications suitable for students taking bachelor's, master's, and professional training courses, such as programming boot camps.
- Refinancing Tools provides sophisticated functionality for combining multiple loans into a single loan with better terms.
- Income-Based Repayment Calculators and Dashboards tools that can predict and adapt payments based on income levels after graduation.
- Co-signer Management & Document workflows are implemented to create services to attract guarantors for student loans and more automated processes for submitting, verifying, and signing documents.
Such a money-lending app can provide an opportunity to get an education without putting a heavy financial burden on the student or their family, as the process will be adapted to the current economic situation.
Microfinance & Micro-LendingĀ
Money lending mobile app microfinance platforms provide short-term loans for low-income people. The main strategic objective of such solutions is to promote financial inclusion and provide alternative credit scoring methods.
Components:Ā
- Microloan Application Apps are money lending apps that allow users to quickly apply for a loan without complicated documentation and lengthy checks.
- Alternative Credit Scoring is used to analyze the borrower's solvency based on non-standard data, such as the history of payments for mobile communications and utilities.
- Repayment and Collection Tools are special services for sending automated payment reminders via SMS, push notifications, or mobile messages.
- Financial Education Modules involve creating and developing educational programs to help borrowers better understand the principles of financial management, lending terms, and effective debt repayment.
Loan Management & Servicing
It is primarily needed for banks, financial companies, and credit unions. These enterprises' main task is to control payments, interest calculations, and debt management methods in compliance with legal principles.Ā
Main components:Ā
- Loan Servicing Software is implemented as an integrated system for managing loan portfolios, with billing, collection, debt monitoring, and reporting functions.
- Borrower Self-Service Portals are unique online systems that allow customers to view their payment history, download statements, and submit requests for changes to loan terms.
- Delinquency Management in the form of automated mechanisms for payment reminders, debt escalation, and strategic measures to reduce the level of overdue debt.
- Regulatory Reporting Modulesāmodules for generating the necessary reports in accordance with financial regulations and standards, which help organizations comply with legal requirements.
Lending technologies are not just about money lending mobile app development because it is a complex solution that will be active on both sides. The first party is a financial institution that presents its services in the form of software for employees. The second part is the client who wants to use these services using a client platform from this financial institution or a special money lending app.Ā
Therefore, if your company wants to introduce a new fintech product to the client sector or upgrade the previous one, it is worth researching the accepted practices of creating financial products.Ā
In this vein, the Artkai team recommends that you read our Roadmap to a Perfect FinTech Product in 2025, where we have identified essential approaches to loan lending app development, lending apps, and other fintech products based on real-life collaborations.Ā
Development Process of a Money Lending AppĀ
Lending app development and the question of how to create a money lending app in compliance with all regulatory requirements required a multi-stage process. This includes detailed planning with deadlines, etc., the selection of a technology stack, and the regulation of security standards.Ā
In the context of loan app development, this process must go through several stages because the variety of loan platforms requires complete adaptation for efficiency.Ā Ā
Finding a reliable technology partner who can help create a high-quality product is important before the actual development. Therefore, our team has reliable and professional specialists who will help your business implement the strategy and lending app. We will be able to discuss your idea in detail and offer profitable and effective solutions.Ā
What are the main stages in creating a money lending app or software?Ā
Discovery
At the introductory stage, you need to test the application's idea to determine its viability and market demand.
Aspects worth researching:
- Market analysis and competitors' solutions.
- Survey the target audience using analytics of the information received.
- Identify unique features and a set of values for your lending app.
Design
The design stage of developing an effective UX/UI for personal loan apps or any other fintech niche should include certain elements:Ā
- UX design - with the analysis of user scenarios, the creation of a navigation map, the development of interface prototypes, and testing on real users.
- UI design should include visual design of interfaces, development of buttons, input fields, sliders, icons, and all the necessary information for the user that can be implemented in these must-have features
Architecting
This stage of loan app development involves the development of technical infrastructure and product logic.
The main components include:Ā
- System architecture: client-server model, use of APIs, choice of databases.
- Integration of security mechanisms.
- Prepare the infrastructure for scaling the application using the potential user base development.
A well-designed architecture is essential for a lending app's stability, security, and efficient operation.
Development
At this stage, researching a specific technology stack and building on it to develop front-end and back-end parts is worth it.Ā
For example, for SME & Business Lending, it can be applied:Ā
- Back-end development using .NET, Java, Node.js, or Python to implement core processes such as credit scoring, underwriting, and credit decision logic.
- Front-end development with React, Vue or Angular for interactive dashboards with real-time data display: current debt, payment schedules, credit analytics, and financial analytics.
- Integration with accounting and ERP systems (e.g., QuickBooks, Xero) to automate financial accounting.
For Peer-to-Peer (P2P) Lending, it may be relevant:
- For the Front-end - React, Vue, Angular for Web applications, and React Native or Flutter for Mobile apps.
- For the Back-end - .NET, Node.js, Java, or Python.
- Integrating or modernizing underwriting systems using AI/ML modules to automate credit analysis.
- Cloud infrastructure - AWS or Azure.
*Please note that the above technologies and their use depend on your business's specifics and are subject to change if necessary.Ā
QA testingĀ
Testing the money lending app and its results should indicate that it works correctly without failures and performs all the functionality.Ā
For this purpose, there are several parts of QA testing:Ā
- Functional testing to check the application's main functions (registration, loan applications, payments).
- UX/UI testing with the analysis of the interface usability and navigation.
- Security testing to identify potential threats and verify data protection.
- Performance testing to check the stability of the application under high load.
Deployment
In the context of creating lending apps, launching a product on the market involves complying with the specifics of launching a web platform or for the App Store and Google Play.
We can distinguish between:Ā
- Assessment of the product's readiness to enter the market.
- Implementation of a marketing strategy.
- Organisation of the customer onboarding process.
- Launching an advertising campaign.
It is also worth paying attention to the speed of user engagement and feedback from them, as this base is necessary for further modernization.
Support & maintenance
After the lending app launches, the technical team must ensure its further development and support in case of issues and system updates.
Key aspects:Ā
- Perform performance monitoring and quick-fix technical issues.
- Updating the money lending app with changes in legislation and new financial requirements.
- Collecting user feedback and improving the functionality.
- Adding new features and optimizing product performance.
To remain competitive and support further loan app development, you need to regularly optimize performance and monitor the correctness of work, integrate financial technologies, and analyze work to make creating money lending commonplace for any client.Ā
Developing a lending program requires compliance with the technical and legal components. Artkai's expert guide on Fintech App Development and Modernization in 2025 contains additional recommendations for what a Fintech app should include and the essential details necessary for implementing business tasks.Ā
Legal aspects of lending appsĀ
A full-fledged lending business using a money lending app should be accompanied by full compliance with legal regulations and user data protection when creating money lending and loan applications.Ā Failure to comply with your country's laws can result in fines, sanctions, data leaks, and cyberattacks.Ā
To avoid risks, you should follow certain aspects:Ā
Uninterrupted operation
Lending app development, or the issue of creating money lending in the context of lending apps, should be resistant to excessive load, even during a large number of parallel operations.
Security priorityĀ
Certain elements should be taken into account at the stage of lending app development and provided for:Ā
- Biometric authentication (for example, fingerprint recognition or Face ID).
- Two-factor authentication (2FA)
- Encryption of the connection between the P2P platform and servers.
- Using secure APIs to process and store sensitive information.
GDPR ComplianceĀ
Suppose a lending app that can provide personal loans operates in the EU market. In that case, it must comply with the General Data Protection Regulation (GDPR) requirements, which came into force in 2018. Failure to comply with these regulations may result in significant fines.Ā
To implement this point in lending app development, you need to:
- Obtain user consent to process their data.
- Adhere to the principles of transparency in storing and using personal information.
- Provide users the right to delete sensitive personal data from the system.
CCPA Compliance
It may be relevant if your target audience is in California. Such a money-lending app must comply with the California Personal Data Protection Act (CCPA), which has been in force since 2020. The law provides for complete user control over personal data.Ā
Additionally, it provides:Ā
- The ability to refuse the collection and sale of personal data.
- User access to personal information and the ability to delete it upon request.
- Ensuring transparency about how the company uses personal data.
Today, creating a money-lending app without complying with these fundamental legal aspects is impossible. As such, its development should protect user data and businesses from fines.Ā
Must-Have Features for Money Lending AppĀ
The functionality of a money lending app should be accompanied by its business and user values. For example, starting from the question of how to create a money lending app and ending with high-end lending app development with secure payments and reliability for the client.Ā
Creating an effective financial solution and lending app is impossible without considering the current trends in the fintech industry with the introduction of new interesting and useful features. In the publication Fintech Trends to Adopt in 2025 and Beyond, the Artkai team detailed what you should include to develop an effective product.Ā
- CIBIL Analysis and its credit rating verification system, which is aimed at assessing the financial reliability of borrowers. The higher the CIBIL score, the higher the probability of loan approval.
- Dynamic Requirement Gathering - this is an intelligent feature in money lending apps that can automatically generate lists of required documents depending on the loan parameters. This can simplify the application process and save customers time.
- Chatbot Integration allows borrowers and lenders to communicate without exchanging contact details, reducing the need for operator support.
- Payment System Integration - supports various payment methods, including PayPal and bank debit/credit cards, to ensure flexibility.
- AI-based Analytics: This is implemented by using AI and Big Data to analyze user activity, detect fraudulent schemes, and allow administrators to track the platform's operational efficiency in real-time.
Implementing such functions in lending apps when creating a money lending service will not only improve the user experience but also increase the credibility of your product and company as a whole, making it safer and more convenient for all participants in the lending process.
Artkaiās Expertise: P2P Lending Platform and Marketing WebsiteĀ
CoinLoan is a unique P2P platform for cryptocurrency lending. Its main goal is to provide loans secured by digital assets. The project contains technological innovation with a unique ecosystem for lenders and borrowers.
Our team was involved in developing both the platform and the marketing website.
Main tasks and goals:
- P2P Lending Platform ā development of the main product that allows borrowers to receive loans secured by cryptocurrency and investors to provide financing and earn profit.
- Automated Loan Management System ā a system for stable operation of the lending process with built-in user flows for investors and borrowers.
- Setting up KYC and Security Features for data protection and increased security level.
- Develop a UX/UI that is understandable for different user groups.
- Integration of cryptocurrency payments and wallets.
- Development of a marketing website to attract new users.
- Development and implementation of the CoinLoan token in ERC-20 format, including the process of its issuance (minting) and distribution among platform users.
After a productive 5-month process, the results exceeded all expectations, and the Artkai team managed to:
- Develop a new marketing website that is as user-friendly as possible and is confirmed by analytics.
- Positive user experience on the platform with a qualitatively built lender-borrower interaction.
- 100K+ active users who actively use CoinLoan, which confirms the success of the platform and its popularity among crypto investors
A comprehensive approach has become one of our tools when working with a client-customer for the CoinLoan project since it is precisely the observance of technical relevance and many years of practical experience that has become another confirmation of expertise based on practical experience and significant niche knowledge.
Conclusions
The modern lending apps market is developing rapidly and opens up great opportunities for the financial sector. However, a well-chosen technical team is undoubtedly behind every successful fintech solution.
Artkai specialists have many years of experience creating high-quality, engaging, and profitable products. Therefore, if you want a high-quality money-lending app, contact us for a consultation.Ā Ā
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