Does your loan business really need an app?

Most lenders always want to have an app for their loan businesses. The arguments are many and varied; while most are valid, the rationale for having a loan app can be quite nuanced.

The truth is, most lenders don’t need to have a loan app, not only because of the stress of having one, but because the net impact on the business might even be negative. 

While not having a loan app is not inherently detrimental, let’s review the top 5 reasons why a lender doesn’t need to have an app to run a successful loan business.

Apps are expensive to develop and maintain

If you’re considering building a mobile loan app from scratch, remember that it often involves separate development efforts for iOS and Android. This means you’d need a substantial budget to afford skilled engineers, which can be financially overwhelming in the early stages.

Instead, consider opting for a reliable loan management software that can kickstart your operations within minutes, saving you time and resources.

Read more: 7 factors to consider when choosing a loan management software

Limited workforce

As you go on this journey, you’ll discover that managing a loan app with a small team poses challenges. Tasks like troubleshooting, continuous monitoring, and prompt response to customer queries become more demanding.

Considering the rapid changes in app regulations, staying informed about compliance requirements can be an additional challenge for a small team. Also, while ensuring the security of your borrowers’ financial and personal data is paramount, staying updated on the latest cybersecurity measures can be an added strain for the team. 

Capacity to manage specific app regulations

Imagine waking up and your loan app being forcibly removed from the app store. You’re immediately thrown into panic mode and must start sending millions of emails to determine which regulation you weren’t compliant with.

Plus, your borrowers are livid, and your customer support team has to work overtime to manage the sudden influx of concerns. The ripple effect of an unexpected removal from the app store goes beyond just regulatory headaches. It’s a many-sided challenge that tests the strength of your entire loan business.

Customer preferences

Every business owner’s primary goal is to get discovered by the right customers and make life easier for them through the service they provide. With a web app, you are accessible to a wider audience irrespective of their device preferences.

This includes customers who may not want or cannot download a mobile app. Additionally, you get more eyeballs from the web through search engines.

Read more: How to grow your customer base as a lender

Go live in no time

While it is commendable that you plan and hope to ship your best to the market. Starting early and modestly often yields the most rewarding outcomes. You’ll catch up, clean up and scale up along the way.

But here’s the best part: what if, instead of paying tens of millions to Engineers, you could set up your lending platform – complete with mobile and web app – in a matter of weeks? That’s where Lendsqr comes in.

Read more: What problem is Lendsqr solving for lenders?

In weighing the need for a loan app in your business, it boils down to practicality. Consider your goals, target market, and resources available. Whether a necessity or a luxury, the decision rests on what aligns best with your business model and journey.

Sometimes, simplicity triumphs over complexity, and success lies in embracing the approach that genuinely fits your present stage in business. Lendsqr can get you started on the right track with the right tools. Send us a message at growth@lendsqr.com, and let’s help you identify your current app needs.