The consumer-friendly lending services provided by fintechs have been highlighted as many turned to them during the initial lockdown phase. Caught off-guard by the imposition of lockdown and stay-at-home measures deemed necessary in preventing the coronavirus from spreading, many suddenly found themselves without work or business income from which to draw funds in buying their daily needs.
Although the federal government subsequently released economic aid at a later date, those who have had previous dealings with a fintech company was able to obtain immediate funding relief by way of a fintech loan.
All because, unlike traditional lending institutions like banks, fintechs have developed innovative technologies that allow them to extend loans that consumers can immediately use in procuring goods.
A Cursory Look at Innovative Methods and Technologies Used by Fintechs
Fintech lenders use data from different databases in order to quickly assess the creditworthiness of a loan applicant.
Once a snapshot of the applicant has been established, a fintech lender can immediately arrive at a decision on whether to approve a loan or not; usually in less than 24 hours.
If approved, documentations are simply coursed through automated processes by way of smart phones or tablets.
Actually, getting a fintech loan quickly approved depends not only on a person’s credit history, but on all things considered. They include Information related to how the person manages and settles other personal financial aspects, such as payment of utilities, car loans, personal or business taxes and other useful info that will uphold the person’s reputation and credibility.