The credit industry is always evolving. Today, we’d like to look at how technological advances are making it possible for credit companies to offer cutting-edge, ultra-modern services to their customers. Once you discover the latest credit industry news, you may decide to take advantage of some high-tech credit services yourself.
Texting for Credit May Be Possible Soon
Experian is one of the world’s biggest credit bureaus. It’s one of the “big three” American credit bureaus and its reports are utilized in order to calculate credit scores. The team at Experian are planning to use technology to their advantage (and to the advantage of consumers) by creating a new system which makes it possible to apply for credit by sending texts. This innovative new service is being offered right now with pilot programs from Experian and other key credit industry players. With these pilot programs, consumers are able to start and complete credit applications in mere minutes, just by sending texts.
Clearly, loan applications processes are being streamlined and this makes life easier for lenders and borrowers. If these pilot programs are successful, you may expect the whole credit industry to follow suit, so anticipate being able to apply for credit with just a simple text in the future.
Fintech is Changing the Credit Industry
Another facet of modern technology which is changing the way that loans are processed is fintech. Fintech is the usage of technology, including (but not limited to) computer programs, in order to enable or support financial services and banking. Venture capitalists see the potential of fintech and they are investing in it regularly.
The latest innovations in fintech are altering all aspects of lending, including the basic lending model! The old model, whereby banks accept deposits from customers and accrue funds which allow them to lend money to other customers is still in place, but there are other models being adopted, including high-tech, peer-to-peer lending, which is delivered online and typically comes with a lower rate of interest.
Two popular platforms for fintech peer-to-peer lending include Prosper and LendingClub. There are plenty more. With these platforms, people are able to earn interest by lending their cash to other people. The platforms receive a minimal fee for acting as brokers i.e. connecting lenders with borrowers. With fintech peer-to-peer lending, borrowers don’t submit typical applications. Instead, they secure loans by showing prospective lenders why they need the money and why they are good credit risks.
The key advantage of fintech for credit is that fintech firms tend to offer quicker application processes, approval which is faster and funding times which are rapid. With a bank, a prospective borrower will generally need to wait for a few weeks in order to move through the loan application process. With peer-to-peer lending which is brokered by a fintech company, the whole process moves a lot faster and this serves the needs of peer-to-peer borrowers and lenders.
Do You Need Credit?
If you need credit, it may be time to use one of the newer models for borrowing money. So, why not explore the options online today?