Creating a Financial App Similar to Brigit: A Guide on Building a Money Lending Application

February 6, 2024
Getting money in emergencies has always been a challenge. Apps like Brigit have changed that, allowing users to get a loan instantly. Money lending financial app development is a major change in the fintech sector in the UK. Seeing the current rise in demand for money lending applications, fintech app development is a great opportunity for businesses to tap into. Brigit serves as an excellent example of a money-lending app made well. In this money-lending app guide, we’ll look into the features you need to implement, the development cost, and the steps you need to follow as a business to develop one.

Essential Features of a Money Lending App

Let’s start by understanding the crucial features needed to make a functioning fintech app like Brigit and to stand out in the market.

Incentive System

The money lending app market is filled with apps like Brigit. If you want to make your app stand out, incentives are something you should look into. For instance, you can incentivise your users to pay their loans back on time with some points. These points can be redeemed for cash, discounts, or any other benefit. A rating system will help you gauge the creditworthiness of users based on their loan history.

AI-Powered Chatbot

A chatbot is the best way to provide instant support and query resolution. With AI and NLP, you can develop a chatbot that is human and constantly improving. An AI-powered chatbot can understand human tone, emotions, and intent. It provides a unique and personalised answer to every query. This reduces the burden on your customer support team, allowing them to focus on important issues.

Personalised Reports

Every user should get a customised detailed review of their loan status, payment history, interest rates, and fees. The users should have the ability to customise the report according to their preferences.

AI/ML and Blockchain Integration

You can improve the functionality, security, and user experience with AI/ML and blockchain integration. For instance, AI can analyse user behaviour to detect any anomalies and prevent fraud and other risks. Blockchain can be used to create a decentralised and distributed ledger that ensures data integrity.

Interest-Free Borrowing

What makes Brigit stand out from the competition is the fact that it doesn’t charge any interest on money borrowed. This is something you can implement to keep your users satisfied.

Repayment Time Extension

Give users the benefit of extending their repayment time in case of unforeseen circumstances, as life can be unpredictable.

Financial App Development Cost

Many factors play a role in determining the total cost of building a finance application. These include the app’s scope, features, technology, development company, and more. This makes it difficult to pin down an exact number. However, we can provide you with a rough breakdown of the cost.
Feature Description Estimated Cost
 User Authentication  Secure user login and registration  $5,000 - $10,000
 Loan Application  Allows users to apply for loans with necessary information  $8,000 - $15,000
 Credit Scoring System  Integration of a credit scoring algorithm  $10,000 - $20,000
 Document Upload  Feature for users to upload necessary documents securely  $5,000 - $10,000
 Loan Approval Workflow  System for reviewing and approving loan applications  $10,000 - $15,000
Payment Gateway Integration  Secure payment processing for loan disbursement and repayment  $8,000 - $12,000
 Notifications  Push notifications for loan status, repayment reminders, etc.  $5,000 - $8,000
 User Account Management  Settings, password reset, profile management, etc.  $5,000 - $8,000
 Admin Dashboard  Backend interface for managing users, loans, and system settings  $15,000 - $25,000
 Compliance and Security  Ensure compliance with regulations and implement robust security measures  $15,000 - $25,000
 Customer Support Integration  In-app chat, helpdesk, or support ticket system  $8,000 - $12,000
 Reporting and Analytics  Track and analyse user behaviour, loan performance, etc.  $10,000 - $15,000
 Cross-Platform Compatibility  Develop for iOS and Android platforms  $10,000 - $15,000
 Testing and Quality Assurance  Rigorous testing to ensure a bug-free and secure application  $10,000 - $15,000
 Legal and Licensing  Legal consultation, licenses, and regulatory compliance  £15,000 - £20,000
 Contingency  Buffer for unforeseen challenges and adjustments  £10,000 - £15,000
 Total Estimated Cost    £150,000 - £250,000

Steps to Develop a Money Lending App

Here are the things you need to take care of as a business to develop your FinTech app.

Target Audience Research

Who you are developing the app for influences the entire mobile app development process, from design to testing. Define your target audience’s age, income level, education level, and occupation, as these are crucial for a money-lending app.

Competitor Research

Brigit is one competitor you’ll be going up against. But there are more top dogs in the field. Analyse what they are offering and what they are unable to offer. This will highlight opportunities for you to excel in the fintech sector. Remember, you need to offer something better to stand out.

Create a Monetisation Strategy

There are multiple ways to generate revenue from a money lending application. The primary way is by charging interest on loans. Secondly, you can charge a processing fee and a service charge for each transaction.

Ensure Necessary Compliance

There are a lot of legalities a money lending app should comply with. Before you start the development, ensure that your app idea is in compliance with regulations and get all the necessary paperwork.

Reach Out to a Top Fintech App Development Company

Create a project scope document that outlines your app idea in detail, including your expected timeline, features, third-party integrations, and other nitty-gritty. Get in touch with MAD, the top mobile app developers in the UK. We have everything you need to actualise your idea under one roof. From the latest technologies to AI experts, we have you covered. With 23+ years of expertise, we have developed many successful fintech applications. We know the ins and outs of the sector and can help you achieve your business objectives. Let’s work together to bring your vision to life.
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