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Technology is Revolutionising Financial Options

Finance

Technology is Revolutionising Financial Options

Karen Allison
Karen Allison July 21, 2018
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Traditionally when an individual or a business has required finance for personal or business reasons, it would be off to the bank, cap in hand, to fill out a variety of application forms, concerned that you might be signing your life away, to then wait almost like a condemned man to see if the bank will be merciful. Often a painful exercise, and almost equally as often a fruitless one as well. The problem has been that banks have tended to be very rigid in the products they offer, and the process for determining if you are sufficiently trustworthy to repay it. If you are fortunate enough to be approved, it will normally be, a predetermined loan, over a set period, at “X” rate of interest and subsequent repayment amounts. But what if you need the money for a different amount of time? If you want a loan for four months, you are not going to want to be paying interest on the money for a full year, and even taking the one year loan and paying it quicker doesn’t always help as some loans have penalty clauses that punish you for paying it early.

New Options in Finance

The financial industry is one which has been taking advantage of advances in communications and technology, though many of the banks are being somewhat slow off the mark to adopt it fully, others have taken the opportunity to bring a whole new world of financing options with amazing flexibility. Banks have been largely focused on using their IT department to focus on customer service and compliancy issues, and are still offering their standard loan packages, which are becoming less and less attractive to the smart borrower. The Financial Technology sector, known as FinTech is growing exponentially, and is expected to have a quarter of the market in a fairly short period of time.

How Financial Technology Helps Borrowers

Financial technology has enabled transactions to be processed far faster and far more economically than ever before, so that money from anywhere is accessible to finance companies, and able to be delivered anywhere else amazingly quickly. Software systems like Mutual Service provide loan management programmes which enable complete automation and maximum client customisation, in finding the loan they want, over the period they need, at interest and repayment amounts that they are comfortable with. The other thing of beauty with such loans, is that an application and answer can be provided online, in a matter of minutes.

It is funny that the people who need to borrow money the most, are normally the people who find it hardest to get, which can be very frustrating for a small business, who has a great opportunity to do something great for their company, but miss out waiting for the bank to approve a loan. Every person and every business out there, is looking for differing amounts of money, for highly diverse reasons, each looking for the deal which is right in line with their comfort level. Adoption of technology by finance firms worldwide, is bringing the perfect loan at the perfect price, in minutes, to consumers everywhere, from the comfort of their own home.

 

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