How fintech companies are making it easier for Canadians to borrow money
Fintech lenders are changing the face of borrowing money for Canadians and people around the world. Gone are the days of waiting days or weeks for a response on a loan application. The Fintech industry has exploded, and is providing affordable and easy options for borrowers, small businesses, and entrepreneurs.
Fintech is a simple yet intriguing combination of finance and technology. This unique combination has made borrowing money more accessible with a streamlined process. Along with bringing more education to borrowers about their options, Fintech is empowering people to take control of their own financial futures. Borrowers now have more options than just the traditional bank lenders like getting financing from iCash. Let’s take a look at how Fintech lenders are making it easier for Canadians to borrow money.
New lending model
Traditionally, banks collect money from savers and then charge interest to borrowers to make money. Fintech companies have turned that model on its head. They offer opportunities to their depositors to extend credit to potential borrowers. This essentially means that through peer-to-peer lending, those that choose to invest can earn money on taking a risk.
Automated lending process
Traditional banks still primarily rely on their employees to process loan applications. This type of underwriting takes time that most borrowers don’t have to waste. The Fintech industry has begun using sophisticated artificial intelligence algorithms to speed up the process of certifying a loan application. Borrowers no longer have to wait painfully to find out if they will get the funding they need. With the use of faster technology, Fintech companies save money on processing and can extend that savings to their customers.
Big data processing
Fintech companies are harnessing the power of technology to collect important data on borrowers that go beyond the traditional credit scores. Using this increase in data allows Fintech companies to streamline their risk assessment and make more informed decisions about which investments they can afford to take a chance on.
Big banks use a huge amount of server capacity to store the financial information of their customers. This has put many banks at risk of being hacked and crucial data becoming used criminally. Fintech takes advantage of today’s technology to collect and view your financial data without ever having to store it, putting you at less risk and eliminating the chance that they will sell your information to other vendors.
While Fintech gives borrowers a better chance to qualify for a loan without jumping through all the old traditional hoops, it also gives peer lenders the opportunity to make solid investments. For small businesses and individuals, the Fintech industry has opened up millions of opportunities to find unsecured loans.
The Fintech industry has been successful in changing up the traditional lending industry. By using technology to further their customer service, collect important data, and streamline the loan application process they are enabling more people to take charge of their financial future. Applicants can have more confidence in the lending process, the security of their information, and get the money that they need in less time with Fintech lenders.