Why You Need No-Code Solution to Launch Your Lending Startup

According to Gartner's report, the no-code industry was worth $13.8 billion in 2021 and became the growing among other tech sectors. It means the development sector of any industry has the ability to use no-code solutions to transform their products.

However, the fast growth of no-code solutions is not the only reason for the transformation of the financial industry. New fintech disruptors such as neobanks and non-banks threaten traditional financial businesses and require established financial companies to adopt innovative technologies.

Does this apply to the lending market? According to Grand View Research, the global digital lending platform market size was estimated at USD 5.84 billion in 2021 and is projected to grow at a compound annual growth rate (CAGR) of 25.9% from 2022 to 2030.

Looking at the numbers from the above report it can be predicted that the growth will primarily occur in large companies due to increased demand and shares in regional markets. Can early-stage lending startups grab their share? This is quite real, but owners need to act today and use the methods that the giants simply will not have time to apply, for example, no-code solutions.

However, there are many different reasons why lending startups should be looking to make greater use of the no-code industry.

What Does No-Code Lending Software Mean?

Briefly, no-code frees you from the constraints of legacy technologies, and enables faster innovation and increased business agility. All you need to benefit from no-code solutions is to select software with all the functionality that addresses your consumer's needs. With real no-code software, you do not have to write a single line of code for your app to be up and running, so the time gained in this process will be invested in other business areas.

By adopting no-code solutions, capital investments are reduced to a minimum since you might not need any IT specialists as all the needs have been cared for by your no-code solution provider. Consequently, you will not need to staff an in-house IT department to integrate and customize new lending software. Also, you can avoid any maintenance costs while running your day-to-day business.

In the previous paragraphs, you can see the term “real no-code” which means not every platform that offers a no-code approach can prove it. Sometimes it can be just a low-code system that still will require some coding skills to implement, in the worst scenario the implementation will require evolving specialists and take a minimum of three months.

To sum up, what does it mean a no-code lending platform? Let's explain with the example of Neofin software, an end-to-end no-code lending automation platform. Such a platform provides you with the following benefits:

• Give you a reduced development time, as you can launch any new lending products within 1 hour;
• No need for specific expertise or involvement of IT specialists;
• No employee training is required since the instance is set up from an intuitive control panel;
• Agile approach with an ability to test ideas and launch new products within 1 day.**
  

What No-Code Solutions Lending Startup Can Adopt

Complex loan origination, servicing, and management solutions are not the only options lending companies can choose to launch their products. There are also separate tools on the market that will help make the process of issuing loans more efficient, faster, and less risky.

For instance, KYC and Digital Onboarding will help you with 3D liveness detection, video verification, document recognition, client application forms, and data validation algorithms. With no-code solutions, the KYC process is streamlined, eliminating data duplication.

On the other hand, the no-code Decision Engine puts the lender at competitive edges, as it brings flexibility, speed, and proper regulation to what customers can get as it is a nexus between the customer want and institutional credit policy.

One more option is to adopt BNPL software to start offering customers new and trendy services by using the company’s capital. If you want to learn more about the process of launching your own BNPL product with no-code software, you can watch this webinar where this issue was explained.

But if the initial task is to launch or significantly improve the lending process, it is worth paying more attention to the all-in-one products. Such solutions help to automate all stages of the borrower's journey from the application to origination, servicing, and reporting.

Launch of No-Code Emergency Lending - Easycash Experience

Easycash is an online emergency lending service launched in 2020. It allows users to access credit for payment on any bank's card within minutes and all year round.

Easycash had a minimal time limit before launch and required a fully automated solution that covers all the stages of the borrowers’ journey, from the loan application, origination, and servicing, to decisions and reporting. Also, the company did not have any IT units that could work on the project and required an independent contractor to actualize the project plan within

Easycash was looking for a no-code lending software provider that would help them launch the product without the special expertise and involvement of IT specialists. Among the chosen tools, they selected Neofin due to its modular end-to-end system and easy-to-use interface. The project was launched without having any in-house IT specialists on board while it simultaneously started yielding profits in six months.

Conclusion

Fintech startups must be faster to stay competitive, and no-code solutions can be one of the ways to compete in this race. Less time to launch, no IT specialist and coding skills required and a wide range of customization possibilities are all advantages that help a new loan company achieve results faster.

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