LenderKit offers boost to new entrants in P2P market
Konstantin Boyko, chief executive and co-founder of fintech software development company JustCoded, explains how his LenderKit technology is adding flexibility to the global peer-to-peer lending market…
Fintech software development company JustCoded is on a mission to break down the traditional barriers to entry that have plagued alternative lending markets across Europe.
Through its flagship product LenderKit, it has created a white label solution for newly-created crowdfunding platforms in all jurisdictions, offering everything from start-up technology, to payment gateway integration, to KYC and AML requirements.
Already, LenderKit has helped dozens of crowdfunding and peer-to-peer lending platforms bring their product to market.
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Konstantin Boyko (pictured), chief executive and co-founder of JustCoded, says that he first spotted the potential of the P2P lending market four years ago, when the company began receiving more requests for custom software for crowdfunding services.
“We had an idea then that there might be more people interested in similar options,” he says.
“So we did a little bit of market research and initially our product was just beta – we were trying to tell people how it might work and might look like later on, and that generated quite a lot of interest.”
In 2018, JustCoded launched the LenderKit, and since then it has expanded its client base internationally, with clients in the UK, the US, Europe and the Middle East. It was instrumental in bringing the first P2P lending platform in Saudi Arabia to market.
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“We have interest from many countries,” says Boyko. “We get a lot of leads currently, and in many of those countries, they don’t have regulatory frameworks yet, or they’re just establishing them.”
This means that LenderKit had to be created with in-built flexibility to adapt to emerging and changing regulations in a number of different markets.
“For some of the European markets, we have to integrate local payments for local banks, and we also need to integrate a number of services for KYC, AML, etc,” explains Boyko.
“And all of those are unique for each specific application. These requirements might be changing on a monthly basis, and that means that the software should be updated according to those requirements.
“To do this with a typical software as a service or white label solution is just not possible because if you issue an update it will update all the customers at once. With LenderKit, we effectively have separate software installations for every customer, and we can do it flexibly.”
As a result, JustCoded has helped many platforms get to market for the first time.
In the future, JustCoded plans to expand its offering from software to more advanced packages that might include its own KYC systems or payment gateways. The company also hopes to work with more local service providers.
“For example, in the UK we have established a partnership with a regulatory compliance consultancy,” says Boyko. “And that would allow us to provide not just software, but also licensing services as a package together.
“In the US, we are talking with local companies about joint ventures which would allow us to adjust and maybe create separate products for the US market.”
LenderKit has proven the viability of its business model, and as the P2P space expands and evolves, so too will the LenderKit technology.
“There are still a lot of things which can be done in the crowdfunding space,” says Boyko.
“Our technology can be applied not just to the existing business models of equity crowdfunding and P2P lending, but the same approach can be used for very different use cases. And I have a feeling that they have not yet been explored fully.”
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