FinTech – changing the ways in which people borrow and save
Technology is evolving at a rapid pace. More and more we see businesses and services turning to complete online service without any physical offices, or infrastructure. This means a quicker and more efficient turnaround in all spheres of society, including the financial branch, more-so than others, because finances and banking is an essential part of our every-day lives.
The financial landscape is being reinvented on a daily basis, particularly now that the emergence crowdfunding, kickstarter projects, peer-to-peer banking, and perspective startups are driven by dreams of a better tomorrow. So what does it mean in practice? For starters, it’s becoming a lot more convenient to get loans through up-and-coming services such as LendingClub and Prosper due to the fact that startups that operate in finances do so using online platforms, and the processes can now take less than 24h until you have the loan on your account, whereas banks still require days or weeks of paperwork and overlong processing to approve of your request.
This has caused valid concern in bankers who ignored the calling of technology and opted to take the path of least resistance. Why change anything if it works? Well, it worked then, but it’s slowly stagnating as time goes by. Things that were unimaginable only 10 years ago like online transaction tracking and personal account management by a way of simple smartphone apps are becoming a thing of norm. So how did it come to this?
The eye of the storm
It all comes down to man and machine working together, or in this case, not working together. As we’ve stated, banks are perfectly happy with the way things are, because they’ve worked for years and years in the past, so why would the fundamental basis change now? It’s all just a passing storm to them, but as we can all asses, the storm is just beginning, and it’s bringing change along with it. Perspective young minds eager to change things and make them more user-friendly and straight-forward without the needles hassle are emerging rapidly and there’s no end in sight. How could there be when the world is changing and evolving more rapidly than ever? This is why banks opted to start investing into developing online financial platforms to get along with the coming change. Time will tell if their effort is for nigh however, since many of the startup finance services are well ahead of the curve by now.
Actions of many
Most noticeable change in the financial sphere has been in the form of crowdfunding and kickstarters. As the name may suggest, crowdfunding offers ways for average everyday people to invest and support causes, companies and products they believe in, with no middle-men or investors to convince into funding. Platforms like Kickstarter and Indiegogo are dominating the market and attracting more and more attention of investors and indie bright minds with ideas. Fact of the matter is, this works for both the thousands of investors and the investee, making it easier and more personal to work together towards a common goal. This is a legitimate concern on the corporate investors’ side of things since they deal in huge revenues and partnerships, and a term like “crowdfunding” is surely to set off a few ripples.
As we’ve stated, changes are barely beginning in the sector of cloud finances and online banking. The internet of finances is growing by the day and already it’s causing concern for the “old-school” banks that opt to go the safer route, not risking any revenue loss and keeping their cards close to their chest. The ones who are already adapting to the coming change will soon prosper and find themselves in a new financial world which is more open and accessible than even before. FinTech is becoming a new norm, and it’s up to the people, the bankers, the investors, the indies to adapt and evolve. The storm is coming. What are we going to do about it?
Finance technology is completely changing the way people buy and save. The internet is now the best platform for investing. However, before getting started, you are advised to consult with a professional financial advisor. This way you’ll stay protected from unforeseen events and your initial investment will bring you substantial returns.
Credits: By Paul Trevino and Synaptic.co.uk!
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