How to Improve Financial Life with FinTech?
“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 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 the 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 a 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 the 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.
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