How to Create a Money Lending App: 7 Expert Tips

If you have been thinking about creating a money lending app, you may have noticed how this business has thrived in recent years. And indeed, more and more people choose mobile banking over managing their finances in traditional institutions due to many conveniences. However, a good performance on stage never shows all the hard work behind the curtains, and developing a loan app is no exception.

To make the application top-notch, safe and fast, future app owners must take care of many security issues, pay attention to legal regulations, integrate third-party tools, and the list goes on! I have seen many times how these complications block our clients from evolving their ideas. But as a Product Manager, I assure you that you're not doomed to develop the loan app on your own.

Uptech is a product development studio. We have been developing apps since 2016 and can help you build robust software and give your app a quality design! Feel free to contact us. Now let's discover how to build a money lending app.

A quick look at the money lending app market

Before rushing to strike you with some statistics, I have to mention one of the key players contributing to financial digitalization. Mobile banking was on the rise before the pandemic as well, but the spread of the virus increased the demand for remote financial services. According to the Boston Consulting Group survey, more than 40% of people between 18-34 years old started using online or mobile banking for the very first time as the pandemic broke out. Only in the United States, 78% of people now prefer to bank online or use a banking application.

So have advanced loan services. The digital lending platform market was valued at $5.8 billion in 2021 and is expected to grow by 25.9% from 2022 to 2030. What's even more fascinating about these numbers is that major lending companies started hitting it big just in the last five years, dominating in the North American and European markets. The demand remains high in Asia Pacific due to many emerging fintech companies in that region.

how to create a money lending app

Money Lending App Types + Examples

Now, let's take a look at types of loan applications based on the size of the credit they can give. As soon as you select a certain type, it will be much easier to estimate the cost and features of developing a money lending app.

how to create a money lending app

Small loans for cash advances

Usually, under $500, they work best for fast funding and charge minimal fees, offering automatic overdraft protection. Chime or MoneyLion are money loaning apps of this sort.

Small personal loans

Usually under $5,000. This type of money loan app is appropriate for those who need quick funding and relatively low credit score requirements. Universal credit, for instance, grants access to personal loans ranging from $1,000 to $50,000, even in case your credit is damaged. Among the leading platforms, I'll also mark LendingPoint, which doesn't take much time to let you register an account and issues the loan on the next day after confirmation.

Startup business loans

Usually, over $5,000 — as you can guess from the name, these loans suit startup owners who aim to set their businesses in motion. Applications of this type, like Lendio or Bluevine, to name a few, give access to lines of credit, connecting your business to various lenders. Meanwhile, a good deal of loan applications is known to only operate in certain countries or states. Lendio is available worldwide, which is a win for both parties.

how to create a money lending app

Why Create a Money Lending App?

We've had a look at some of the best money lending apps and the traits that make them stand out. Before jumping into the challenges of developing such an app, there's a positive side to it. Since your customers are those who need money and need it fast, it mustn't cost your imagination a lot to picture why they would need a lending application on their hands:

  1. Borrowers, as well as lenders, can access banking services from anywhere;
  2. A few clicks consume less time than one line in an actual bank;
  3. Instant cash issue;
  4. Protection of personal data.

Here are some potential perks for you to own a custom lending application now:

  1. The digital lending platform is expected to register a compound annual growth rate of 24% in five years.
  2. The number of digital banking users has increased by 4% since 2018.
  3. A wider range of ways to make your lending app user-friendly via a simple interface, gamification, and overall personalization.

Money Lending App Development: Challenges to Consider

Below, I describe the main challenges of developing a money lending app. Take a look:

The complexity of the industry

Just to have a notion of how complex mobile banking is, break down the challenges of traditional banking. Only security issues themselves demand a different and more delicate approach on a digital level, like varying legislation and often third-party integrations.

Diversity of legal regulations

Make sure you meet the legal requirements of the region where your app is supposed to work. Security standards differ not just from country to country but also on a smaller scale, like states sometimes (the California Consumer Privacy Act as an example).

The need for a financial specialist (in-house/outsourced)

Hire a financial advisor who can help you reach your financial goals, ranging from investment plans to developing marketing strategies that suit you best. This one doesn't entail any risk, but finding a dedicated professional genuinely interested in developing your money lending app is not easy.

Find a bank partner

Partner with an investor or a bank institution to get your business off the ground. Be aware that in the case of banks, there will be certain regulations you must comply with, followed by a range of financial procedures before you can access the funds. Meanwhile, funding your business through investors doesn't foresee various legal adjustments but does consider possible diminishment in ownership, influence, or control.

How to Create a Money Lending App: 8 Steps

Finally, we approached the main part: “how to develop a money lending app?” Below I describe 7 main steps you should take to develop a loan app. These steps are fully based on the product management experience and approach we use at Uptech.

So if you feel that you need help at any of these stages, feel free to contact us, and we’ll be happy to give you a consultation.

how to create a money lending app

Step 1: Inspect the market

Take a good look at other lending apps, noting their strong and weak sides. Try out a few of them to gain first-hand experience. Otherwise, watch some lending app reviews on Youtube, and don't forget to read the comment section! You can find some valuable feedback from users about their experiences. This is your homework that will give you a bigger picture of the market you're going to enter.  

Step 2: Decide on the app type

After conducting market research, think of the crucial attributes you'd like your loan app to include. You can go back to the money landing types block and decide what app you can and want to build, for example:

  • Money lending app for cash advances;
  • Money lending app for small personal loans;
  • Money lending app for business loans.

Many factors like app development cost, team, outsourced services, and future app features will depend on the app type. At this stage, you should make your current plans and shape your ideas in a more realistic and practical framework.

Step 3: Gather a team

As you have an approximate plan on how to start a lending business, choose your squad to discuss the work strategies more thoroughly. Basically, you have four options here:

Each team type differs in price, starting from freelancers as the most affordable option and lending to a development agency as the most costly. Opting for an outsourcing team is an optimal solution regarding the costs, development speed, and quality. Check the comprehensive guide on how to find app developers for your project and how it benefits your business.

Step 4: Choose the tech stack

Now we've moved on to the practical step. Think of your web infrastructure and what technologies must be built within it to make it scalable and secure. These are the general points your team has to work on:

  • app infrastructure;
  • backend and frontend development;
  • database management;
  • UI/UX design.

Though a money lending app isn’t a bank – it works with private user data, so security should be taken highly. The users’ data should be encrypted at rest and in transit. You should use best security practices to protect the system from hackers. Data backup, penetration testing, metadata tracking, etc. – are the fintech security practices we at Uptech use.

Overall, it all comes down to having a trusted and professional development team. We at Uptech have been working on fintech products like Aspiration and Cardless, so we know how to build a secure fintech solution, indicate security weaknesses, and fix them.

Step 5: Design your app

While a good design won't make a killing, a bad design can be a real buzzkill for the target audience. Try to keep the interface simple so that the app is easy to navigate. Also, consider adding gamification, it might come in handy when your users receive credit points!

how to create a money lending app

Step 6: Development part

Development of a money lending app involves several software development tasks:

  • Front-end development focuses on creating the user interface, which involves designing and developing the app's layout, menus, buttons, and other elements that the user interacts with. The front-end development team also creates the app's web pages, which are built using technologies such as HTML, CSS, and JavaScript.
  • Back-end development is concerned with the server-side of the app, where the data and logic of the app are stored. This includes developing the database schema and building APIs that allow the front-end of the app to communicate with the back-end. Back-end development teams typically use programming languages such as Python, Ruby, or Java, and database management systems like MySQL.

Overall, the development process of a money lending app involves a combination of front-end and back-end development, which together create a user-friendly, secure, and efficient platform for managing loans and financial transactions.

Step 7: Integrate 3rd parties

Since lending app development foresees different financial procedures, integration of third-party tools or software is essential. Think of payment gateway integrations, like PayPal, Stripe, bank cards, e-wallets, and accounting systems.

At this point, your app developer must connect your mobile application to the necessary tools using a set of APIs. Examine everything that needs to be integrated since the chosen tools and software will impact your loan app's functionality and security.

Step 8: Test and launch!

Finally, when you're all set with the steps mentioned above, test your lending app to check its appearance, performance, and functionality. If it proves to operate smoothly, launch it in the market. At this stage, pay attention to each review you receive to implement necessary modifications if needed.

We offer full-cycle financial software development services, from creating product development strategy to top-notch fintech services implementation.
Develop your fintech software with Uptech! 📲

Money Lending App Development: Legal Part

Once you think of developing a money lending app, the need to study the legal requirements arises. The tricky thing is that the legal regulations applied to money lending apps differ from region to region. And even from state to state. So if you don't want to accrue huge fines (and I'm sure you don't), check out the main regulations I listed below and follow them religiously.

  • EU data protection regulation:  GDPR

If you start a money lending app in Europe, you must comply with GDPR laws.

  • USA data protection regulations: CCPA (California Consumer Privacy Act), CFPB (Consumer Financial Protection Bureau), Agencies with Fair Lending Authority (Regulatory or Enforcement).

They are in place to protect the public from data sharing and selling and other wrongful uses.

State-specific regulations, like California Consumer Privacy Act, oblige creators to fulfill its requirements when developing software for California residents. Due to CCPA, users receive more personal data control, and financial transactions become safer.

Unlike GDPR, it doesn't cover publicly available information. According to the law, 'for-profit companies,' organizations with revenue above $25 million, must comply with the requirements. Companies must provide data for the last 12 months.

Loan guidelines and options change frequently, so I recommend you hire a legal consultant to keep an eye on legal changes in the fintech segment you are working with.

How Much Does It Cost to Build a Money Lending App?

Loan lending app development cost can start from $40 000 to over $400 000. Yes, the range is big because different factors influence the price. Here are 3 key factors that determine the cost.


As I've mentioned above, you can hire freelancers as the cheapest option, which might cost you approximately $30,000. Meanwhile, working with an agency sets the price around $100,000. Hiring in-house also will cost you a lot, and the price varies strongly depending on your location. Outsourcing a team won't take more than $80 000 in general, but the price can vary significantly from company to company.

For a more accurate app development cost estimate, feel free to reach our team.


It is more expensive to develop a lending app in the USA and EU countries. The prices in Eastern Europe, South Asia, and Australia go remarkably lower.

App complexity

The price climbs higher with every feature you build in and the design requirements you have.


Now you've seen how to build a loan app step by step and what aspects you should bear in mind. Besides many technical issues, collaboration and partnerships are imminent in any lasting project. As a dedicated product development team, Uptech helped to deliver more than 150 products to the market over 7 years of experience. Contact our team to get your project going!


Let’s build your next product! Share your idea or request a free consultation from us.

You may also read

mobile app development company blog
Best Practices
June 13, 2024

How Much Does AI Cost in 2024?

All Articles
Best Practices
mobile app development company blog
How To
June 6, 2024

How to build an app for iOS and Android

All Articles
How To
mobile app development company blog
Best Practices
May 30, 2024

Technical Debt Management: Best Practices

All Articles
Best Practices
mobile app development company blog
Best Practices
May 23, 2024

Mobile App Security: Top 12 Strategies to Secure Your Apps

All Articles