It wasn’t too long ago when you had to go to a bank to get a loan. Fintech is changing all that. It has made it easier to borrow, save and invest online using mobile devices – without ever having to go to the bank.
What Is Fintech?
Fintech is a term that is used for describing any kind of technology in financial services. It improves and automates the use and delivery of financial services. Fintech can help consumers, business owners and companies alike.
You can use instant personal loan apps in India to apply for a personal loan which can get approved in minutes.
6 Global Fintech Trends
Booming Digital Payments
For the longest time, cashless transactions meant credit card, debit cards or checks. Not anymore.
The digital payments sector is booming. With most of the people having access to laptop or smartphones, they are able to leverage the advantages that Fintech offers. You can now complete transactions, pay consumer bills and shop online using your smartphone.
Multiple payment options also give you the flexibility and freedom to pay the way you want.
Robo-advisors are a huge part of fintech financial services. They are an automated asset allocation method for investments through computer-based algorithms. They offer investment management services for a fraction of the price that a human financial advisor would charge.
They will continue to disrupt the asset management sector by providing algorithm-based asset recommendations. They can also offer portfolio management that has increased efficiency and lowered costs.
Banks are no longer the only ones who can offer you loans. Fintech has brought a new crop of lenders who are willing to offer loans. Alternative lending options like peer-to-peer lending are getting increasingly popular.
Financing a personal loan for startups would no longer be a problem. Fintech companies will make it easy for anyone to borrow money in the coming years.
Security with Blockchain Technology
Blockchain technology covers the essential needs of the fintech industry. It helps in:
- Creating secure financial products at minimal cost
- Tracking the complete lifecycle of a financial transaction
- Making financial services functional
Blockchain eliminates the need for an intermediary to handle financial services such as money transfers. It also minimizes the possibility of errors and ensures the integrity of financial reporting.
Paperless Personal Loan
Paperwork was the bane of banking. The fintech industry promises to change all that.
Many fintech companies are focusing on having paperless documentation and KYC. This accelerates the process to approve a personal loan.
Real-time Online Credit-Scoring
Fintech has enabled companies to develop a real-time online credit-scoring tool. It uses the customer’s profile and history of transactions with cards issued by other financial institutions and sources.
You just have to upload your identification card and some basic financial information. You will get your credit score immediately, in real-time. This makes applying for credit cards or loans much easier.
Fintech will continue to create a splash in the financial world as it doesn’t show any signs of slowing down.