In the recent years, technology has come across various modifications leading to great noticeable changes in the financial industry. In the history of finances, the first bank that came into the existence was back in the 19th century. From then, until now, the journey of banking and finance has evolved a lot. Earlier, when payments were made through coins and pound notes, now an easy cheque is enough to facilitate the same. Families and friends were the sole alternatives for the financial help but today, the concept is different, variant loans like long term loans with no guarantor are available to facilitate the situations of financial shortage.
With these improvements taking place, one of the changes that have come into existence is regarding the lending process. It has become more advanced and effective since the time FinTech direct lenders came in. Finance and technology when intermingled, give birth to FinTech lending. The concept of FinTech borrowing and lending took place firstly in the year 2007 since then, the concept became famous and people started enjoying its benefits. The effortless process of borrowing started adding to its advantages, which thus became the reason for the continued practice of the concept.
Categories of FinTech
Three different categories of the FinTech exist in the concept. Let us take a look at them:
These are the different categories of FinTech. An important thing that most of the people tend to forget while taking them into the consideration is that they are not banks but, they are the financial institutions that work through mutual contract with banks. All that these institutions perform is, take care of the technological area in order to facilitate the working.
How FinTech makes the payments easy?
Technology, undoubtedly, has helped the world in many ways. Similarly, the concept of technology introduced and mixed with finances helps in making the payments easier. You can opt for loans with no guarantor to smoothen your financial journey.
Here is how the introduction of FinTech in the financial market helps in easy repayments –
The above listed are some of the ways that are how FinTech source of finance gives assistance to making timely and easy payments. Additionally, these ways also create positive impacts over the borrowers and the lenders in their own consecutive ways.