5 things you need to do before you launch your loan app

Once, we knew a man named Steve, a serial entrepreneur who had “suddenly” stumbled upon the enormous credit gap. In his usual habit, Steve launched his loan app for small businesses. He’d imagined the perfect scenario: a simple, intuitive app that would solve all the financial needs of everyone in his locale. The day he hit “go live,” he waited for the avalanche of users to flood in. Except, they didn’t.

Weeks went by, and he only had a trickle of signups. Customer complaints about glitches, unanswered support requests, and a confusing interface started pouring in. Steve was left wondering: What did I miss?

You see, building an app is one thing. Launching it successfully? That’s an entirely different ballgame. Steve’s mistake? He rushed to market without setting up the right foundation. Today, we’ll help you avoid that mistake. If you’re thinking of launching a loan app, here are five things you absolutely must do first.

Featured read: 5 reasons why a digital lender must have a loan app

Know your customers, for real

Before you get excited about your loan app’s design or fancy features, ask yourself this question: Who is my loan app actually for?

It’s easy to think, “Well, it’s for people who need loans,” but that’s way too broad. Are you targeting small business owners or individuals looking for quick personal loans? This choice matters. 

For instance, if your customers are small businesses, they’re more likely to sit at a desktop to manage finances, meaning a web app could be more useful. On the flip side, a mobile app is your best bet if you’re aiming at everyday consumers who may want a loan on the go.

In fact, studies show that mobile users spend almost 5 hours a day on their phones. That’s your opportunity to keep them engaged, right there in their pockets. But the wrong platform? It could lead to high drop-off rates or lower engagement.

So, do your homework. Dig deep into who your customers are, their behaviors, and how they interact with technology. Make decisions based on that, not just because you think mobile apps are trendy or web apps feel more professional.

Featured read: 6 features in your loan app that chase borrowers away

Build a brand that stands out

Here’s the thing about the loan app market: It’s crowded. And by crowded, I mean really crowded. From big players like banks offering digital loans to fintech startups, the competition is stiff. So, what makes your app special? Why would someone pick yours over a dozen others?

This is where your brand comes in. But branding isn’t just about having a catchy name or a slick logo. It’s about building trust. People need to feel that your loan app is reliable, easy to use, and secure, especially when it comes to something as personal as their finances. Did you know that 59% of people prefer to buy from brands they trust? Trust isn’t built overnight, but you can start by being clear about who you are and what you stand for.

Think about what you want your loan app to be known for: Is it speed? Low interest rates? Transparency in fees? Whatever it is, make sure the message is clear from the get-go, and most importantly, deliver on it.

Featured read: How to use Lendsqr’s APIs to power your loan app

Don’t overlook your financials

You’d be surprised how many startups get tripped up by something as basic as managing their money. Almost a decade deep into catering towards lenders of all sizes, we’ve seen it happen countless times: a brilliant loan app idea crashes and burns because the founders didn’t figure out their costs or revenue model properly. In fact, 29% of startups fail because they run out of cash.

When you’re launching a loan app, you need to have your finances in order from day one. This means knowing exactly how much it will cost to keep the app running, how much you’ll need to spend on marketing, and how long it’ll take to start seeing actual profit. Don’t rely on guesswork. Build a solid financial plan. And if that’s not your strong suit, hire someone who knows what they’re doing.

You also need to consider how you’ll generate revenue. Will you charge fees on every loan? Will you offer premium features? Whatever the model, make sure it’s realistic and sustainable.

Featured read: Why we built our lenders’ web app and how it has changed lending forever

Prepare for round-the-clock customer support

Many lenders don’t realize that their loan apps can have the most amazing interface experience, but if their customer support is terrible, they’ll lose customers fast. Especially in the financial space, where people’s money is involved, they need to feel supported 24/7.

Customers don’t want to wait hours (or worse, days) to get their problems solved. According to Zendesk, almost half of all customers expect a response to their inquiry within an hour. And when they don’t get it? They’re already looking for alternatives.

That’s why you should think about customer service even before launch. How are you going to handle support tickets? Are you planning to have live chat, email support, or phone calls? 

One thing that can save you a lot of trouble (and money) is AI-based customer service tools, which provide quick responses to common issues and escalate more complex ones to human agents. Interestingly, one of the things we’re going to do at Lendsqr is provide AI services that allow our lenders to manage their customers effectively.

Featured read: How to use Lendsqr to build your BNPL app

Assemble a competent team

Here’s the reality: you can’t do it alone. As much as we’d like to think of apps as automated, self-sufficient machines, they need real people behind the scenes.

You’ll need a reliable operations team to handle everything from loan approvals to compliance with financial regulations. You’ll also need a marketing team to get the word out, a customer service team (as we’ve already covered), and an IT team to liaise with your technology providers to keep everything running smoothly.

A lot of lenders make the mistake of thinking they can skimp on their team in the early stages, but a half-baked team leads to a half-baked product. And when you’re dealing with people’s finances, that’s not something you can afford. Fintech is one of the most regulated industries out there, so having at least one compliance expert onboard is super important. Otherwise, the likelihood of getting your loan app booted out of the App or Play Store becomes high.

Featured read: Why most lenders fail within a year

Launch a loan app that stands out

It is great  to be excited about launching your loan app. But excitement alone won’t get you far in the lending industry. Building a loan app that can survive and thrive in this competitive landscape means laying the proper groundwork before you ever go live.

So, take your time. Know your customer inside out. Build a brand that means something. Nail down your finances. Invest in customer support, and put together a team you can trust. That’s how you ensure your leap doesn’t become a freefall. When you’re ready to make your move, don’t let it be a blind leap. Make it a calculated jump. And with Lendsqr by your side, you can ensure a smooth landing. Ready to get started? Book a free demo.