Today’s marketplace has changed exponentially from how business was conducted before the days of the Internet, with so much business now conducted from hand held devices and smartphones, though sadly, not everyone has kept up. All large businesses become a little cumbersome and difficult to navigate through significant changes, and the banking sector is no exception. Pretty much every decent sized firm out there has an IT department and banks are exactly the same. They have introduced technology to enable them to provide a better level of customer service, and to keep every transaction record in compliance of financial regulations, but strangely are remarkably slow to adopt the major changes happening in their own sector. As a result, the new Financial Technology sector, known as FinTech is gaining an ever increasing segment of the market in lending, especially for the short term borrower.
How FinTech Works
As communication and technology has developed, so the ability to move money around the world has become much faster and simpler. Money, anywhere on the planet, can be delivered to anywhere else in the world incredibly quickly, and far more economically than ever. This dramatically reduces the overheads in obtaining money from a lender, regardless of where they are lending it to you from. The people most likely to be turned down by the bank for short term finance are often small business owners, who are the ones who actually need it the most. A rigid loan from a bank, if approved, may not come quick enough to seize a market opportunity, or may have terms and repayment amounts the borrower is unhappy with. FinTech allows a borrower to take a loan and individually customise the interest rates, the term and repayment numbers, to get the money needed, quickly and affordably.
How the Process Differs from the Bank
What do you think are the chances that you can ring your bank up and get them to approve a loan of a few hundred thousand dollars, on your terms, and have your answer in about five minutes? Well, there is difference number one on the list of reasons why alternative financial solutions are gaining in popularity. Finance houses with automated programmes and customable options can find a loan, which perfectly meets your needs and abilities, and approve you in pretty much that time frame. Rather than offering you the single stiff option offered by the bank, who are after all selling you their product and their product only, the new breed of finance company can process every offering anywhere in the market, from thousands of lenders. From those incredible number of offerings, you can be pretty sure, some of them at least, are going to be able to offer you a better and more flexible deal.
Looking at the Future
Our traditional borrowing from the bank is likely to fall further into decline as time goes by, with the technology side of the financial sector taking larger and larger shares of the market. The ever growing presence of Blockchain technology and crypto currency is again taking finance to new levels of technology usage, so it will be interesting to see if the banks respond this time, or get left behind again.