5 reasons why a digital lender must have a loan app

When starting as a digital lender, one is often faced with a big decision. Is an app a must-have or a pass? Navigating the hassles of developing a decent loan app can be overwhelming and is definitely no walk in the park. Yet, looking at the leading digital lenders in Africa  – Fairmoney, Lulalend, Branch. One thing is evident, a loan app is your pathway to replicating their success, and the broad audience reach they’ve amassed. To truly hit it big, you need a loan app, and we have the reasons to guide you.

It’s easier for a loan app to be discovered through the stores

Having a loan app as a digital lender means that when people are looking for loans, they will find and explore their options on their various app stores. You cannot afford to miss out on such a massive reach. Plus, it opens up new avenues for customer engagement, allowing you to interact with borrowers, address queries, and build a stronger connection.

Also read: Boosting your lending app rating on Google and Apple app stores

Make smarter credit decisions with loan apps

Lenders often need metadata from borrowers’ devices to help make smarter lending choices. These include consented data such as location, call records and many other data points. Collating these data with a web app is challenging, making credit decisions harder. This personalized data from mobile devices enables you to create a more accurate and detailed credit profile, enhancing the precision of your lending decisions. Note that Lendsqr would never sell or abuse your data. 

App presence elevates credibility

You could be an early-stage small-scale digital lender and start with a web app in the initial days. However, the gruesome competition and crowded nature of the ecosystem are bound to soon overwhelm your business credibility and recognition if, in the later months, you don’t get a loan app. A mobile app can significantly enhance customer engagement and accessibility, offering borrowers a more convenient experience.

Mobile apps are more secure than web apps

Apple’s App Store and Google’s Play Store often rigorously assess apps for security before making them available for download. This boosts your credibility and market importance, especially in the eyes of your borrowers. A sense of trust is ingrained in your prospects, assuring them that your app meets high standards for data protection. Passing these stringent security checks by these stores also elevates your app’s visibility, increasing the likelihood of being featured in app store recommendations, thus expanding your reach to a wider audience.

Also read: How mobile SDK works for lending decisions

Communicate with customers using push notifications

A mobile app lets you communicate directly with your borrowers through push notifications and in-app alerts, keeping them updated on new products or updates. It gives room to personalize loan offers and boost engagement and customer loyalty with targeted promotions. Additionally, a mobile loan app offers real-time updates on account activity, ensuring your borrowers stay informed about their financial status.

The journey to having a loan app for your digital loan business is tough and pricey. But thanks to companies like Lendsqr, things take an easier turn. While others take 4 to 6 months, Lenders who choose Lendsqr loan management software can launch their loan apps in the Google Play Store and Apple App Store in 7 weeks. Want to get started? Send us a message at growth@lendsqr.com or visit our site and sign up now!