“I applied for a personal loan without going anywhere. I got money in my account within the same day. Auto payment mode never let me fall behind repayments. I did not miss any utility bills because all are managed with a phone app. Life seems easier and better.”
FinTech, known as financial technology, has reshaped the financial industry from hardcopies to softcopies. Cutting down the hassle of standing in long queues and filling out numerous particulars of a form, digital financial services have taken the burden off your shoulder. Here is how FinTech has improved life.
Allowed microloan services
Whereas banks and other financial institutions had no policy of disbursing small amount of loans, digital lending has helped a million of borrowers who needed a small amount of loan to tide over. Huge paperwork, hard credit check and a lot of formalities have been reduced to a one online application form that requires you to fill out your personal details only. As you hit the ‘submit’ button, it takes hardly a few seconds to approve the application. In times gone by, getting a loan within minutes used to be beyond imagination.
Helps with savings
The era you are living in is known as digital era. Everyday a new app is introduced with different features to manage everything from budgeting to tracking in an easier manner. Building an emergency cushion is extremely imperative if you want to avoid taking out multiple loans. You can find several free apps that help create a budget and set aside money according to your monthly incomings and outgoings. These apps can also help you automatically transfer money to your savings account.
Peer-to-peer loans are on the rise
You need funds on short notice; you may have an emergency or you have not stashed away enough cash for your planned activity. Whatever the reason, traditionally you would have to go to banks, wait for a couple of weeks and then you got money. Of course, emergencies cannot wait for such a long time.
Thanks to direct lenders who have understood financial emergencies of borrowers and have introduced the lenient lending system. Now you just have to submit an online application form and you will get money the same day.
Direct lending system has been so successful that it has generated peer-to-peer lending system. It helps you borrow money from other individuals, cutting down the application fees and broker fees.
Everything is in front of your eyes
Several direct lenders are out there who provide different types of short-term loans at different interest rates. Before you apply for a loan, you can research extensively about the popularity of a lender. Reviews can help you know about the users’ experience. Nowadays nothing is admired with three-star rating. You can also compare deals, interest rates to choose the best one.
Accessibility to funds is higher
In times gone by, getting loan was not easy at all. Banks would generally approve a loan only when you had a good credit score, but FinTech has allowed people with bad credit borrowers to take out emergency loans. Direct lenders have been constantly upgrading their technology and tools to quickly shortlist multiple loan applications within a split of a second. Nowadays they can assess your repayment capacity without making hard inquiries on your credit report. With bespoke loan offers, you can get money on the basis of your affordability.
FinTech has undoubtedly improved life. With powerful technologies and novel approaches, lenders have successfully helped millions of borrowers by addressing their financial problems. With new avant-garde tools and vast knowledge in financial sector, they can help you make better financial choices.