How is Fintech Changing the Lending Industry in 2020?
(Photo : How is Fintech Changing the Lending Industry in 2020?)

Have you considered opening a new bank account or getting a credit card this year? The pandemic has changed a lot of things, but lenders have been able to circumvent the widespread changes to the global marketplace. 

An increase in economic need and low interest rates have created a recipe for multi-faced lending solutions. But, cyber fraud and data theft is approaching an all time high as most of the country moves their lives online. 

Fintech has adapted rapidly to the new changes in the lending industry. Read on to learn how this sphere is using fintech systems and software to increase information security and prevent data loss in 2020.

Instant Rate Calculators

Many states are still closed down, which has limited the ability for people to visit their local bank branches and loan offices. This is led to an increase in demand for online rate quotes to allow borrowers to compare rates easily and quickly from home. 

This system works in the lenders favor, as well. By reducing the need for an in-house customer service team to field phone calls, lenders can significantly reduce overhead costs.

On the other hand, borrowers enjoy being able to see if they qualify for a loan by simply inputting a few numbers into a form.

Diverse Payments

From cryptocurrencies to mobile payment apps, retailers and financial institutions are accepting more forms of payment in 2020. As a result, lending platforms are also changing up the way they accept and disburse funds. 

In fact, there are currently lenders on the market that give cryptocurrency loans digitally. This has expanded the possibilities for first-time business owners and entrepreneurs to start new ventures - even during the market downtown.

Additionally, merging lending platforms with blockchain technology is an effective way to boost data security and online financial protection.

If this trend continues, it could expand to the retail and commercial goods industries on the mass market scale. Bitcoin, mobile wallets, and all forms of digital currency could soon be used to buy groceries.

Contactless Applications

We don't know when the pandemic is going to come to an end, so safety is the number one priority for companies and individuals around the country. Reducing contact as much as possible is currently the best defense, and online lending applications completely eliminates human interaction.

Just like instant quote calculators, online applications just require some personal and financial information - such as proof of identification. In some cases, lenders may require a photo of the applicant's official ID or other documentation. However, all of these requirements should be compatible with any mobile phone or connected device.

While safer financial transactions is the ultimate goal, many customers also enjoy the ease of use that comes with getting a loan with just a few taps on their phone.

Speedy Approval Process

One of the best benefits of this new online lending landscape is how it has streamlined the process. Eliminating steps in the application process, and automating some of the standard application criteria, can shorten the entire loan application process to just a few minutes. 

Depending on the loan type and applicant information, credit reporting might not even be a requirement. Additionally, certain unsecured loans don't require up-front collateral. 

Consult with loan service in your area by searching for the "loan or title place near me."

Fintech has successfully integrated high-tech tools to prevent data theft and loss across a variety of industries, including the impacted lending sphere. Although the cyber criminal pools is more saturated than ever before, banks and lending institutions are keeping up with their trends using: 

  • AI

  • Cloud-based security

  • Multi-factor identification

  • Biometrics

  • Trend monitoring

  • Dynamic alerts

For consumers and businesses looking to get a loan in 2020, these changes have made the process easier and safer despite the increased risk. 

Now, you can obtain financing in hours (or minutes) with online transaction protection and instant customer support services.

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