The advancement in technology has brought a remarkable change in every sector and lending industry is no different. In today’s time, it has become easier for everyone to take a loan without going through the cumbersome process. Along with that, it is possible in today’s time to estimate the risk associated with lending or borrowing. In this post, we have discussed how technology has changed the lending industry.
Availability of More Options
Due to the revolution in technology, it has become possible for everyone to opt for a loan from different lending options available in the market. In earlier times, banks were the only source available for taking loans. But in today’s time, there are a number of choices available where one can apply for a loan. Now, lenders can choose among the different lending options available to him. There are many online financial services available which offer loans to people at a reasonable interest rate.
Risk Accessing becomes More Accurate
In today’s technology-oriented world, there are plenty of tools available using which lenders can estimate the risk associated with a particular type of lending. One can know about the credit score of a person with a click of some buttons to examine whether a person is suitable for granting a loan or not.
Faster Sanctioning of Loans
In the earlier system of lending, borrowers had to go throw a lot of paperwork which used to consume plenty of time before the final sanctioning of the loan. Due to the developments in the Fintech sector, people don’t need to wait for a long period of time and they can simply get a loan in a single day. Not just the borrowers, it has become possible for lenders to offer a loan to borrowers with ease. There are many Swedish financial firms working which allow sanctioning of a loan without UC (utan UC) to applicants.
Data Utilisation
By using the technology tools, it is now feasible for fin-tech services to analyze the credit history of an applicant before granting a loan to him. Earlier, it was not the case as lending institutions were supposed to follow a long process to inquire about the ability of a person to pay the loan amount. Now, there are certain factors such as social media ranking, educational qualifications, and potential of a particular firm, which can be utilized before sanctioning loan to an applicant.