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Development of an Ethical Peer-to-Peer Lending Platform for Direct Investor-Borrower Connections
  1. case
  2. Development of an Ethical Peer-to-Peer Lending Platform for Direct Investor-Borrower Connections

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Development of an Ethical Peer-to-Peer Lending Platform for Direct Investor-Borrower Connections

effectivesoft.com
Financial services

Challenges in Traditional Lending and Investment Models

Traditional lending systems involve multiple intermediaries, resulting in higher borrowing costs and lower investment returns. Existing platforms lack transparency, impose excessive fees, and fail to provide users with direct control over their financial transactions.

About the Client

A FinTech startup aiming to disrupt traditional lending models by creating a transparent, intermediary-free platform connecting individual investors and borrowers.

Platform Goals

  • Eliminate financial intermediaries to improve returns for investors and reduce borrowing costs
  • Create a secure, user-friendly platform for seamless peer-to-peer transactions
  • Implement automated loan matching and risk diversification mechanisms
  • Ensure transparent tracking of investments, repayments, and interest rates

Core System Capabilities

  • Loan application processing and automated borrower-lender matching
  • Transaction verification and payment tracking system
  • Investment diversification by splitting deposits across multiple borrowers
  • Minimum loan amount limit per borrower (£100)
  • Real-time loan status monitoring dashboard for users
  • Withdrawal management and financial planning tools

Technology Stack

Symfony2 framework
jQuery with plugins
Twitter Bootstrap
HTML5/CSS
LAMP stack (Linux, Apache, MySQL, PHP)
CodeIgniter framework

External System Integrations

  • Third-party payment gateways
  • User identity verification APIs
  • Credit scoring system integrations
  • Financial data analytics tools

System Quality Attributes

  • High transaction processing security (encryption, fraud detection)
  • Cross-browser compatibility
  • Scalable architecture for growing user base
  • Real-time data synchronization
  • Responsive UI/UX design

Expected Business Outcomes

The platform will deliver 20-30% higher returns for investors compared to traditional savings instruments while reducing borrower interest rates by eliminating middlemen. Automated risk diversification will minimize default impacts, and the intuitive interface will enable 90%+ user retention through simplified financial management tools.

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