Fintech Industry Is Changing the Personal Loans Industry in India
Fintech is everywhere; so much so, that it’s hard to remember a world without them.
The fintech industry is relatively new, but it continues to grow. So, why is fintech growing at such a rapid pace? The answer is fairly simple. Because it has been successful in making personal finance easier, faster and convenient. So, it comes as no surprise that fintech has now become the first choice for instant personal loans in India.
Fintech startups have put a full stop on lengthy personal loan applications. Also, fintech companies have put an end to the long wait period to hear whether you have been approved for a personal loan or a personal line of credit.
What’s amazing about fintech startups is that they focus on high-tech, low-cost finance models to cater to a large number of people. Fintech are willing lenders, who are waiting for an opportunity to serve you in the best possible manner.
The competition in the fintech sector is steep. So, fintech companies provide value-added services to their customers to stand out from the competition. Those who can keep their customers engaged through their value-add and personalized services capture the largest market share.
Fintech has consistently kept their focus on their customers to draw them in. Here are some factors that make them different from other lending channels, such as traditional banks and financial institutions.
- Providing transparency
One of the major factors why the fintech sector is growing rapidly is because of the transparency it offers to its customers.
Consumers of today want to track their expenses and monitor how they are spending their money. Fintech startups understood this need and provided transparency through seamless integration of technology with their other services.
- Understanding the customer needs
Each consumer is a unique financial personality. How they use their money and what they think about their debt reflect in their financial personalities.
Fintech companies use data to carry out customer segmentation based on their financial personality traits. It gives them a better understanding of their needs and helps provide an adequate financial solution, be it a personal loan, marriage loan or a personal line of credit.
- Offering solutions for debt consolidation
The fintech industry is driven by fintech innovations and advanced financial technology. This makes them well-equipped to offer quality, reliable solutions for debt consolidation.
Consumers of today adapt to new technology quickly and they do not mind switching to another lender if they get a better loan deal.
That said, the market for debt consolidation solutions is never going to stagnate. Even if the customers consolidate their debts, there will be instances where they’ll need more money, such as emergencies, unforeseen life events, increased cost of living and evolving spending habits.
Fintech companies know this very well. They understand the debt consolidation behaviour of customers and to keep them engaged, they offer various debt consolidation solutions.
- Disbursing loans the very same day
The best thing about fintech companies is that they provide instant loans. But there is something way better than that. Same-day loan disbursal.
Once your application is approved and your documents digitally verified, you may receive the loan amount on the very same day.
- Carrying out digital verification
Fintech companies use digital financial technology to its best. Right from start to finish, digital technology takes you through each step of the online personal loan application process.
After you apply for a personal loan and submit your documents online, your loan application is digitally verified. The verdict, whether the loan is approved or not is given out in just a few seconds.
One thing is for sure is that fintech is here to stay. And it’s going to be better and better with each passing day. If you haven’t had the fintech experience, it’s time to embrace it now.