You cannot be successful in your life if you don’t give value to time and money. If you use both in the right manner and at the right time, success will come to your doorstep. However, the irony is that not many people have the same faith and some of them struggle a lot in managing their finances. Hope you should be not one of them.
In the 21st century, many things have become technologically advanced, especially in terms of internet usage, and the finance sector is not untouched to it. In the United Kingdom (UK), the marketplace has included internet technology to reach out at a maximum number of customers. The best example of it is ‘FinTech’. The term is derived from the classification called ‘Finance+Technology’. The lending institutions, irrespective traditional and modern, have acquired this concept in offering the funding products to their clients.
Why FinTech has grown rapidly for the last few years? It is a valid question and deserves a proper discussion. Let’s get started with possible REASONS.
Reason #1: ‘Quickness’ becomes a passion
Yes, this is true. The FinTech market has brought the factor of ‘quickness’. Nothing in this world is impossible thanks to technology. With this concept, anyone can apply for the loans through a simple and straightforward application procedure. In fact, applying for the loans has shrunk to a single day process, which means eradicating the financial problems can be done on an instant. Again, as mentioned above, time is important to your success and now you can save a lot of time of yours by securing the funds without any hassle. Indeed, it is a plus factor.
Reason #2: ‘Comfort’ becomes everyone choice
Many financial experts have raised a question about this modern concept and they prefer the traditional way of lending. However, there is another truth that the numbers of people are increasing, who want to apply for the loans through the online system. The main reason is true ‘comfort’. The whole application procedure usually takes half an hour to complete, which they can follow by sitting at their living room and at the office. Surely, you don’t have to request your boss for too many leaves just to follow the loan application process. It is the comfort that FinTech is providing and dragging a lot of customers.
Reason #3: ‘Transparency’ has reached to its zenith
Initially, the paper-based procedure has the dominance but many people used to do spelling mistake or overwriting. It eventually became their reason of rejection. With the online method, they do not face such problems and can submit the application with full transparency. For the lenders’ point of view too, they can verify everything through the internet and give an early approval on the loans. It means the data shared by the borrowers will only reach at the lender and no third party’s involvement ensures full protection to the borrowers’ personal details.
Reason #4: ‘Funding products’ have got varieties
It is also a bonus that comes with the policy of FinTech. A large number of short term loans at the marketplace can be seen nowadays and the lenders are bringing more varieties into it because they don’t have to advertise too much. Google rankings do all for them. However, it does not mean that they don’t have to advertise. They have to keep a marketing team but they can experiment with their financial products according to the growing demand from the borrowers. One more thing is that people with blemished credit scores are also seeing multiple lending options for them.
Reason #5: Flexibility has become the main tool
There is a truth that the competition at the marketplace has widened a lot and the lending companies have to be flexible in their policies so that they can attract maximum people to their financial products. The easy repayment terms, interest rates and the soft inclusion of obligations are the best examples of it. The FinTech lenders just agree with almost every requirement of the borrower. Obviously, they have to survive at the growing competition. Thus, flexible lending policies are actually providing benefits to the people and they are enjoying them.
In the nutshell
FinTech has brought ease to the lending procedure and perhaps, everyone would be agreed on it. The questions remain, such as:
1.Is the online technology almost flawless?
2. Can too much reliance on FinTech lending solve the financial problems?
3. Are the FinTech lenders eligible to be trusted?
To find out the answers to these questions, you either have to consult with the finance professionals or have to do a lot of research.