Borrowers
Apply, accept an offer and repay. Their side runs on the origination and scoring systems, and their payments are applied by the servicing system first.
Financial Services / Peer to Peer Lending
Peer to peer lending software for the investor side of the marketplace
A lending marketplace has to answer two questions every day: whose money is where, and who is owed what. Agnotic Technologies builds peer to peer lending software that lists loans, takes fractional investor commitments, issues notes and pays each investor their share of every borrower payment.
Fractional
Many investors per loan
Sub-ledgers
Every investor's cash tracked
Pro rata
Payouts by a written rule
Trusted by global innovators
Industry Overview
What is peer to peer lending software?
Peer to peer lending software runs a two-sided lending marketplace: borrowers apply for loans, investors fund fractions of them, and the platform issues notes, collects payments and distributes each investor's share. Agnotic Technologies builds the investor side of these platforms: onboarding, listings, funding, note records and payouts, designed around the offering rules your counsel chooses.
Marketplace parties
Who does a lending marketplace serve?
Each party sees a different slice of the same loan. The platform's data model has to keep those slices consistent.
Retail investors
Browse listings, commit small amounts across many loans and watch payments arrive. They need clear disclosures, and limits applied before each commitment.
Institutional investors
Buy whole loans or large fractions through an API or bulk allocation, with loan-level data tapes and reconciled remittances.
Platform operations and finance
Run funding windows, reconcile the custodial account, handle defaults and recoveries, and produce investor statement and tax data.
Industry Challenges
Where do lending marketplaces break?
Marketplace problems are reconciliation problems. These are the ones we see most often.
Investor cash, committed funds and loan proceeds share one bank account with no sub-ledger, so nobody can show which investor's money funded which loan.
A loan is listed, part funded and then withdrawn, and the commitments are released by hand days later.
Borrower payments are split across investors with rounding that drifts by a cent per loan per month and never reconciles.
Servicing fees are taken in a different order on each loan, because the payout rule lives in a spreadsheet.
Recoveries on a defaulted loan arrive months later, and there is no written rule for which holders receive them.
Investor limits and eligibility are checked at sign-up only, not at each commitment.
Funds flow
Where do the funds sit at each step, and who holds them?
We fill in this table with your bank partner and counsel before any code is written. Every movement in it becomes a ledger entry.
| Step | Where the funds sit | Party holding them | Ledger entry written |
|---|---|---|---|
| Investor deposits cash | Custodial or for-benefit-of account at the partner bank | Partner bank, for the benefit of investors | Investor available cash increases |
| Investor commits to a listing | The same account, earmarked | Partner bank | Available cash moves to committed cash for that listing |
| Listing fails to fund or is withdrawn | The same account | Partner bank | Committed cash returns to available cash |
| Loan funds | Disbursed to the borrower by the lender of record | Borrower | Committed cash becomes note principal for each investor |
| Borrower pays | Collection account | Servicer, for the note holders | Payment applied to the loan; amount due to investors calculated |
| Payout runs | Back in the investor account | Partner bank, for the benefit of investors | Each investor's share of principal and interest, less the servicing fee |
| Investor withdraws | The investor's own bank account | Investor | Available cash decreases |
Our Approach
How should a marketplace approach its build?
Three decisions come before any screen is designed.
Choose the offering structure first
Whether investors buy registered notes, notes under an exemption or loan participations decides who can invest, how much, what they see and how funds must flow. Your securities counsel makes that call; we build to it.
Keep one ledger for all money
Investor cash, commitments, principal outstanding and payouts are double-entry ledger accounts, reconciled daily to the bank statement.
Write the waterfall down
Fee order, pro rata rules, rounding, late fees and recovery distribution are configuration with an effective date, applied the same way to every loan.
Capabilities
What do we build into peer to peer lending software?
How to build peer to peer lending software for the investor side, connected to the borrower systems you already run.
Investor onboarding
Sign-up, identity checks through your KYC provider, eligibility questions and accredited investor verification where the offering requires it.
Listing marketplace
Loan listings with grade, rate, term and the disclosures the offering requires, plus filters and saved searches.
Fractional commitments
Commitments in set increments, limits checked at each commitment, and automatic release when a listing does not fund.
Auto-invest rules
Investor-set criteria that commit cash to new listings fairly across investors, with a log of every allocation.
Note and participation records
A record of each investor's holding in each loan, with its documents and the terms that apply.
Investor ledger and statements
Sub-ledgers for cash, commitments and principal, monthly statements and the data your tax reporting needs.
Payout engine
Pro rata distribution of each loan's collections after servicing fees, with a fixed rounding rule and daily reconciliation.
Institutional allocation API
Bulk or whole-loan allocation for institutional buyers, with loan-level data tapes and remittance files.
How It Works
What does a peer to peer lending platform's architecture look like?
The reference architecture we start from. The borrower side is one box; the rest is the marketplace.
Borrower application and scoring
Application, identity checks, credit decision and offer run on your loan origination and credit scoring systems. Approved loans are published to the listing engine with grade, rate and term.
01
1
Listing and funding engine
Listings open for a funding window. Investors commit in fixed increments, and the engine either closes the loan at its target or releases every commitment.
02
2
Investor accounts and ledger
Each investor has a sub-ledger of available cash, committed cash and outstanding principal, held inside a custodial or for-benefit-of account at a partner bank.
03
3
Note or participation issuance
When a loan funds, the platform records a note or participation for each investor's fraction, with the loan, the amount and the offering terms.
04
4
Servicing and collections
Borrower payments are applied to the loan by the servicing system first, with fees, interest and principal handled exactly as for any loan.
05
5
Payout waterfall
The amount collected on each loan, less the platform's servicing fee, is split pro rata across note holders and credited to their sub-ledgers.
06
6
Engineering Stack
Systems behind a lending marketplace
Chosen to fit your bank partner, your borrower systems and your offering structure.
Ledger and payments
Double-entry ledger servicePartner bank APIs for custodial accountsACH for deposits and withdrawalsDaily bank reconciliation
Marketplace
Listing and funding window serviceAllocation engine for auto-investEvent log of every commitment
Investor
KYC provider integrationAccredited investor verification providerStatement and tax data generation
Platform
Role-based access and SSOEncryption in transit and at restAudit logsRate limits on investor APIs
Measured Impact
What should a marketplace measure?
Measures we build into marketplace operations dashboards.
Funding speed
Listing to funded
How long listings take to fill, by grade and term.
Idle cash
Uninvested balances
Investor cash waiting for a listing, by investor type.
Ledger breaks
Ledger to bank
Daily differences between the platform ledger and the custodial account.
Payout accuracy
Collected versus paid out
Collections on each loan against the amount distributed to note holders.
Use Cases
Which marketplace models do we build for?
Two-sided lending models, each with its own funds flow.
01
Consumer loan marketplace
Retail investors funding fractions of personal loans.
02
Small business lending marketplace
Investors funding business term loans, sometimes under a crowdfunding exemption.
03
Real estate debt platform
Investors funding fractions of bridge or construction loans.
04
Institutional loan marketplace
Whole-loan and large-fraction sales to funds and banks through an API.
05
Peer to peer lending software for startups
One loan product, simple pro rata allocation and a complete ledger, built so auto-invest and institutional buyers can follow.
06
Move off spreadsheets
An existing marketplace's investor positions and payout history moved onto a real ledger.
Integrations
Which systems does a lending marketplace connect to?
The systems on both sides of the marketplace.
Borrower applications
Loan origination system
Grades and pricing
Credit scoring
Custodial accounts
Partner bank
Collections
Loan servicing system
Investor checks
KYC and accreditation providers
Deposits and withdrawals
Payment rails
Note agreements
Document and e-signature
Investor forms
Tax reporting provider
Compliance-First Development Services Backed by Global Standards
We build secure, scalable products designed for privacy, interoperability, and regulatory readiness from day one across every sector we serve.
General Data Protection Regulation
Implement lawful consent flows, data minimization, and secure processing for global data privacy.
Service Organization Control 2
Verified controls for security, availability, and confidentiality of enterprise data systems.
Information Security Management
Adhering to the international gold standard for managing information security risks.
Our Edge
Why Global Leaders Choose Us
We combine deep technical expertise with industry-specific knowledge to deliver solutions that aren't just functional, but transformational.
Enterprise-Grade Security
We implement rigorous security protocols and compliance standards (HIPAA, GDPR, SOC2) across all industrial solutions to protect sensitive data.
High-Performance Scaling
Our architectures are built to handle massive data loads and user bases, keeping performance steady whether you're serving ten or ten million.
Accelerated Time-to-Market
Using our suite of internal tools and proven frameworks, we cut setup work so your first release reaches users sooner.
Embedded AI Integration
Beyond simple wrappers, we build deep-learning integrations and predictive analytics directly into the core of your industry-specific workflows.
Engagement Model
How does a marketplace engagement work?
We start with one loan product and one investor type. Timing depends on scope; we agree a fixed first release on the scoping call.
01
Scoping call
We map the offering structure your counsel has chosen, the bank partner, the borrower systems and the first investor type.
02
Funds flow workshop
The funds custody table and the payout waterfall are agreed with your bank partner and finance team.
03
Fixed-scope first release
Investor onboarding, listings, commitments, the ledger and payouts for one product, reconciled daily.
04
Grow
Auto-invest, institutional allocation, secondary transfers if your structure allows them, and more loan products.
05
Support
Ledger monitoring, reconciliation breaks, rule changes and partner interface updates.
Facts and sources
Offering rules that shape a marketplace
These rules apply only when your counsel chooses these exemptions; many marketplaces use other structures. Each fact is linked to its primary source.
Under Regulation Crowdfunding, the aggregate amount an issuer sells in reliance on the crowdfunding exemption during the 12 months before a sale, including that offering, may not exceed $5,000,000.
Source: 17 CFR 227.100(a)(1) (eCFR)A Regulation Crowdfunding transaction must be conducted through an intermediary that meets the Securities Act section 4A(a) requirements, and exclusively through that intermediary's platform.
Source: 17 CFR 227.100(a)(3) (eCFR)A funding portal must direct investors to send their money directly to a qualified third party, such as an insured bank or credit union, that has agreed in writing to hold the funds for the benefit of the persons entitled to them.
Source: 17 CFR 227.303(e)(2) (eCFR)A funding portal may not direct the release of investor funds to the issuer earlier than 21 days after the issuer's offering information is made publicly available on its platform.
Source: 17 CFR 227.303(e)(3)(i) (eCFR)In a Rule 506(c) offering, the issuer must take reasonable steps to verify that the purchasers of its securities are accredited investors.
Source: 17 CFR 230.506(c)(2)(ii) (eCFR)
Voice of success
We don't just build products; we forge lasting partnerships. See how we've helped industry leaders transform their vision into technical reality.
“I can clearly see how Agnotic has a unique way of handling end-to-end development. They are always active on quick chat and provide support quickly.”
Aaron Phelan
Founder, Benchmark
“Agnotic combines deep technical expertise with strong domain knowledge. They understand the business context, anticipate challenges, and make collaboration smooth and effective.”
John Pasmore
Founder, Latimer
“Agnotic is the best technical team we evaluated. Their engineering excellence made our work dramatically easier and allowed us to stay focused on what matters most for maternal care outcomes. They took full ownership of the technical execution, and we are always happy to continue working together.”
Kim Smith
Founder, My Lauren
Related pages
The borrower side and the money rails
This page covers the investor side of a marketplace. These pages cover the borrower systems and payment products around it.
Loan origination software
The borrower's application, eKYC and decision before a loan is listed.
Credit risk scoring software
The models that grade and price each listed loan.
KYC compliance software
Identity verification and screening for borrowers and investors.
Loan servicing software
How borrower payments are applied to the loan before investor payouts run.
Digital wallet development
Wallets and peer to peer transfers, for products that move money between people.
Core banking software development
Ledger and product engines for lenders that hold loans on their own books.
P2P lending notes and payments
Note issuance, borrower payment distributions and the ledger that records them.
More in Financial Services
More Financial Services Solutions
Explore other production-grade engineering platforms we deliver across financial services.
Frequently Asked Questions
The offering structure, the number of investor types, whether auto-invest and institutional allocation are in the first release, the partner bank integration and the migration of existing investor positions. We go through these on the scoping call before giving any estimate.
Scope decides it, and so does your offering structure, because legal work often sets the launch date. We agree a fixed first release on the scoping call and plan the build around your counsel's timeline.
No. Your securities counsel chooses the offering structure and the investor rules. We turn those decisions into eligibility checks, limits, disclosures and funds flows, and show them in the system so counsel can review them.
The servicing system applies the borrower's payment to the loan first. The payout engine then takes the amount collected, deducts the servicing fee and splits the rest pro rata across note holders, with a fixed rounding rule so every cent is accounted for.
Only if your offering structure allows transfers. If it does, we build a secondary transfer module that moves the holding, prorates accrued interest and updates both investors' ledgers in one transaction.
Yes. The listing engine takes approved loans from your origination and scoring systems through an API or file feed, so the borrower side keeps running where it does today.
Yes. Peer to peer lending software for startups often launches with one product, one investor type, simple pro rata allocation and a complete ledger. Auto-invest and institutional channels follow once volume justifies them.
Industries