Technology has revolutionised the way many industries and businesses work all around the world and possibly nowhere more so that within the financial sector. Finance, which once upon a time meant a trip to the local bank, is now available on a global scale, incredibly quickly and infinitely more economically. With advances in technology such as Blockchain, money can move from anywhere, to anywhere else in a fraction of the time we were used to and at significantly lower costs. This has a knock on effect as lenders experience a lower overhead in finding finance for a customer, meaning a better deal can be passed along.
A New Option in Loans
Today, when you need a loan, it is no longer necessary to take a trip to the bank, to fill in various application forms and hope that your credit history rating is high enough to get you approved. It is also no longer necessary to accept the sometimes very stiff and rigid offerings from the bank, tying you to a loan period that may be longer than you want, forcing you to pay extra levels of interest. Instead you can make an application online at a site like http://www.maxfunding.com.au/ where you can be highly selective in the parameters for your loan. You can select the amount you wish to borrow, the precise time frame for repayment, or the monthly repayments you can afford to make and get approval in the same amount of time it takes to make a cup of tea.
The way it works is through a sophisticated software programme, which takes the information you have entered to the system, and cross references it with lenders globally, to find the options available for that amount of money and repayment schedule. With tens of thousands of lenders out there, offering far more flexible options than the bank, it is highly likely that you can find a really good deal, incredibly quickly, and save yourself money at the same time.
Why Don’t the Banks do the Same
Generally, the bank has the same problems that any very large company has, in that the larger a company gets, the harder it is for them to be able to react quickly to changes in the marketplace. The banks have had a monopoly on lending money for a very long time and have become quite set in their ways and to a large degree, complacent with their position. Certainly they were fairly early adopters of IT to improve customer service, and to deal with the retention of transaction information required to comply with National and International regulations, but the rapid changes that have occurred in their own backyard seem to have taken them a little by surprise. It is an area where they need to step up their game quite quickly though, as some estimates suggest alternative financing and financial technology, or FinTech, may capture more than a quarter of the market in a fairly short period of time.
That though is a problem for the bank. Right now, it is good news for the consumer, who is able to find better deals on loans, better terms, and answers on applications in a period of time that leaves the banks breathless.