FinTech Revolutionize the Loan IndustryFintech – a combination of finance and technology into one is marked as an innovation towards improving the quality of financial services in the recent times. Unlike traditional financial firms, the fintech companies today have empowered customers to manage their finances easily via advanced digital financial technology such as instant personal loan apps, UPI payment modes etc. Customers are now more aware of the financial concepts and related services, thanks to the revolutionization brought by Fintech.
So how is the innovative Fintech industry revolutionizing the loan process:Fintech companies save on time and do not have exhausting formal procedures for acquiring a personal loan. Here are some reasons why borrowers should opt for the Fintech ways to avail a personal loan in a speedy manner:
Personal lendingFintech firms have enabled peer-to-peer lending without the interference of banks charging a high interest rate on loans. Creating a fintech start-up will make it possible for people to earn a good amount of interest by lending their funds to borrowers in need.
Automatic assessmentThe traditional financing procedures still rely on human evaluation for checking the borrower’s profile. This is not 100% accurate for risk assessment. The financial technology involves an automated assessment process that takes minimum time in personal loan approval. Otherwise, finance companies can take days for sanction whereas with fintech approval and disbursal are done within minutes.
No need for credit history:Fintech firms have other parameters to check a borrower’s repayment capacity such as the consistency of online transactions. Fintech firms do not rely on credit score or credit history to verify the repayment ability.
High-security:Fintech companies process personal loans via digital platforms. Hence, the level of data security is high to secure personal and financial details. Encryption and website security is also taken care of to keep the borrower’s information safe.
Vast scopeFintech firms are not only limited to personal loans but it has expanded its services to support student loans, business loans, marriage loans, consumer durable loans, two-wheeler loans, vehicle loans, and debt consolidation loans.
Small cash loansFintech firms help in the approval of small cash loans between Rs.50,000 to Rs.1,50,000 that is difficult to get via traditional finance companies on the same day. A personal loan being an unsecured loan is processed without a collateral that enables speedy small cash loan approval within 24hours.
With the rise of new digital technology, the Fintech ecosystem consisting of governments, financial services companies, and start-ups are rapidly changing in terms of using technology as a strong base to manage their personal loans, payments and investments.
In the ongoing Covid-19 pandemic, the digitization of financial services has made the personal loan facility accessible via smartphones. Timely financial help is possible through digital loan apps in the times of crisis.
Fintech promises a bright future for personal loan seekers and borrowers, who can flexibly avail loans online in less time. Fintech industries are encouraging and likely to see more digital advancements in the near future.