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What makes a trustworthy lender? A Guide for Emerging Digital Lending Apps

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Borrowing money is usually the go-to option when someone doesn’t have enough for what they need right at this moment. But, only a few people know how to do it right or are smart about it.
Unfortunately, the Philippines does not have a high literacy rate on credit, or at least the formal credit channels.
That could be why many Filipinos still rely more on informal sources of credit because they are not adequately informed or educated about it. Moreover, people will only try other forms of credit if the lender is trustworthy, like lending apps, which are more accessible now.
With FinTech on the rise, more and more lending apps have become available and accessible. However, there is no guarantee that all online lending apps are reliable; thus, there is still a need to be wary of loan sharks.
So now, the question is: how can your customers trust with money?
First, you need to know what qualities your customers are looking for, and most likely, it is a safe and reliable lender worth borrowing money from. More specifically, you need to be credible enough, beneficial more than stressful, and operate legally.


Consumers typically rely on user reviews and experiences to decide whether or not they will try a product. These are all over the internet; may they be posted on the company’s website or uploaded on social networking sites, like Facebook, Twitter, or Instagram. Customer reviews can make or break credibility with only one post. However, you can quickly gain new customers with positive feedback and demos.
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Atome app in App Store
More people will upload and share their experiences with your app when you have established credibility, which can increase your popularity. By having credibility, people unfamiliar with your product can be exposed to it by word of mouth or on social media.

Features and Offers

The online lending space is highly competitive and can overwhelm customers who are only starting. Promoting enticing offers and features that can benefit your users is one thing that can make them trust you. Studying your competitors and how they try to differentiate themselves from other lending apps can help make yours stand out.
You also have to know what customers prefer in a lending app. Some mainstream apps have high-interest rates, so customers tend to be wary of borrowing from them, resulting in bad customer reviews or less credibility. For example, giving lower interest rates compared to other online lending apps to customers can drive customers to your product.

Follows government laws and regulations

What can say “trustworthy” more than being government-approved?
As with any other business, you need to be registered to operate. Since the financial industry has stricter laws, money is a sensitive item to handle. There needs to be proof or certification that you are legally operating.
Other online lending apps were forced to stop operating for violating laws, and the government keeps a list of verified online lending apps that are currently legal and valid through the Securities and Exchange Commission. Being on that list guarantees people they can use your app without being taken advantage of.
On that note, it is important for lending apps to abide by these laws in their data collection through KYC and AML verification with the forms it makes customers fill out.

Your UX with Smile

With Smile API, you can have seamless data collection with better user experience. In just a few clicks by your customers, they can already consent to provide the information that you previously had to ask through multiple pages of forms to fill out.
When you incorporate Smile API into your UX, you can quickly process their onboarding and loan applications in at least 4 steps! Click here so you can experience how our Wink Widget works.
With our API, you are directly connected to employment and income data sources like SSS, GSIS, BIR, HR systems, and gig platforms like Angkas and FoodPanda for delivery riders:
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Smile API Wink Widget
Smile acts as a bridge between you and your customers, allowing them to share user-authorized data with you without having to save their data.
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Smile API Wink Widget
The exchange is a one-time thing that helps verify your customers’ identity faster for quick application processing. In that short exchange, Smile API is designed not to see any information sent by the user, for it only serves as a channel or medium.
Are you ready to get that UX upgrade? Click here so we can make it happen!
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