Fintech is something that makes the banks accessible on our mobile devices. A person who is going for a loan product previously needs to visit a bank branch, hold a meeting with the manager, continue to participate in the lengthy documentation process, and then finally get a loan approval.
Here comes the fintech apps where a person can log in to check which apps are best for the loans and what are the things required to get the loan sanctioned by itself. Fintech companies are a new form of social wizard where that brings important financial services to mobile phones by partnering up with institutional banks.
These institutional banks also get the advantage of the digital disruption model and can get more customers who are coming to the lending platform through these fintech apps.
In this blog, we will look into some of the most revolutionary changes that have been brought by the fintech companies in recent years and have transformed the lending industry.
The Role of Fintech and Its Lending Pattern
Fintech is making progress in India as it’s coming up with new innovative products that are good for the betterment of the financial landscape of the country. When it comes to banks, there is a certain limit to its operations. As these institutions have a traditional history the role of operation is quite slow and couldn’t cater to the large growing population of the country.
However, the country needs a modern financial system that will democratize the facilities, and people from different strata of life can get the opportunity to either invest or get a loan. One can either turn to a loan DSA partner who can guide an individual easily or use a fintech app to get the solution.
A digital lending platform of fintech is already partnered with some traditional institutions, which allows these companies to leverage the customer base and provide them to traditional banks. Through that, it gets the option of lending digitally.
Increase in Accessibility of Loans in Sub-Urban Regions
The sub-urban population is typically the one where one can find small business owners and people of other professions who might need a range of lending products depending on their needs. For example, during the festive season of Diwali or other celebrations, there is an uprise in the demand for lending products in this suburban region.
Now, it can be catered to with the use of the right materials where a person can find the right lending tools with the help of the fintech apps. One of the most amazing parts is that it helps the people of the sub-urban region to get access to credit when they feel it necessary.
Problems Fintechs are Solving
Now there are certain financial problems that one can get into, and that can be solved with the use of the fintech apps that people can use in recent times.
Resolving the Financial Gap in Demographics
India is still a country where we can find a large wealth gap, and for that, there are certain services which are there that are now catering to the demographics where people need micro or retail loans. These apps have a custom-generated feature that checks the creditworthiness of a person, and they can take advantage of it and find how much loan they can avail of at the moment.
Accessibility and Inclusion in the Financial System
Fintech makes finances accessible to everyone, as each person can carry a mini bank into their smartphones and thus get the features of it all the time. For suggestions of loans also, a person can get the best app for DSA and know which lender is offering the minimum interest.
Bringing Customer-Centric Financial Products
Now the fintech apps are the ones that also allow a person to take consumer durable loans. The person who wants to buy a new appliance can get the product with the help of a loan from the app. There are certain apps like Cred and Jupiter are in the market that can also offer financial assistance to the person with loans and cashback from time-to-time.
Finally, it’s the fintech companies that are helping these people to get financial products at a fast pace which is helping them to meet the financial goal of the market.
