Blockchain has been taking over the financial markets for the last few years. The crypto market is a prime example of this. Thanks to the countless advantages it offers, blockchain technology is widely accepted and implemented by entrepreneurs with new ideas to explore the market.
One such development is P2P lending platforms that allow users to directly interact with each other to lend and borrow money without the presence of middlemen. Considering how complex and time-consuming the traditional lending process is, P2P lending platforms are breath of fresh air. They offer ease of doing business without compromising on security.
Building a P2P crypto lending exchange, however, is cost-intensive if you want to start from scratch. Well-known white label service providers are offering the software to entrepreneurs for a cost-effective price along with expert services to customize the software and create a comprehensive P2P exchange based on the specifications of the owner.
Building the P2P Lending Platform
The first step is to learn everything about the government regulations so that the platform doesn’t violate the norms. Apply for the license and get it approved.
Certain must-have features cannot be ignored when developing the platform. Other features are add-ons, which will bring more users to the lending platform.
- Multiple Security Layers
The most important aspect of any P2P crypto lending exchange is data security. While blockchain is secure and transparent at the same time, additional security features are a must to develop a platform that is 100% safe for financial transactions. SSL implementation, two-factor authentication, user ID verification, data encryption, etc., are a few ways to add security layers to the platform.
- KYC and AML Automation
KYC and AML is a part of the user ID verification process. Users are not allowed to request a loan unless their accounts are verified as genuine. Ingenious P2P lending software offers an automated KYC process to approve and verify users faster. This makes the platform user-friendly and saves resources for the owner.
- Secure Wallet for Every User
A crypto wallet that can support multiple currencies (fiat and crypto) is essential to cater to all users. Cryptocurrency is stored in the hot wallet of the lender and is transferred to the wallet of the borrower when the loan request is approved. The transaction is simplified by removing intermediaries. The money/cryptocurrency from the hot wallet can then be transferred to bank accounts or the cold wallets or traded on crypto exchanges.
- Advanced Search
How can a borrower find lenders or vice versa? This tool allows them to narrow the search based on their specific requirements. Risk tolerance, lower and upper limit for the loan amount, loan duration, location, type of cryptocurrency, etc., are some options used in the advanced search feature. When a lender and a borrower with similar specifications find each other, it increases the chances of completing the transaction successfully.
- Loan Calculator
This allows borrowers to calculate how much interest they will have to pay for the loan and whether they can afford it or not. It also helps the lender decide if a borrower’s request for a loan can be approved or not.
- Admin Panel for the Owner
The P2P crypto lending software should give the owner enough control over the platform. The admin panel for the owner does exactly the same. The owner can keep track of the transactions taking place on the platform and ensure there are no glitches or fraudulent transactions. The admin has the right to limit the loan amounts if a user seems to be borrowing way beyond the risk tolerance level.
Entrepreneurs find it convenient and affordable to contact a white label software provider to develop a P2P lending platform. This saves time, money, and effort for the entrepreneurs. Some service providers even take care of the local government regulations by collecting the required information and submitting papers on behalf of the owner to speed up the process.
If you are planning to build a P2P crypto lending platform, Antier Solutions can help. We offer a white label solution to accelerate the deployment of your lending platform while reducing the development cost. Our white label lending platform is fortified with advanced features like a bank-grade Admin panel, instant KYC and AML, multi-currency wallet, LVR calculator, auto-renewal of loans, and more. We also specialize in building a custom P2P lending platform from scratch.
Schedule a free demo of our white label P2P lending software or connect with our subject matter experts to share your needs for a custom lending platform to be built from the ground up.