Which Fintech should I opt for a Personal Loan?

4 Min Read

Fintech is the industry where finance meets technology to revolutionize the way we conduct business. Over the years, fintech has become the heart of the modern-day business. From e-wallets, internet banking, personal lending, credit, insurance, every aspect of finance has successfully integrated technology to ease the consumer experience. And this digitization wave has helped both financial institutions and consumers for a smoother banking and transacting experience.

However, with the rise in fintech options, one may wonder which is the best option while making a choice. Here are a few considerations to keep in mind:

  • Simplified User Experience: The USP of fintech is ease and convenience. With strong technology foundations, fintech companies are providing consumers a simplified user experience. There are no long queues, lengthy manuals to study, and hassled banking personnel to deal with lengthy paperwork. Consumers can acquire a personal loan at the tip of their fingers with a single click via a mobile app.
  • Instant Approval and Fast Disbursal: Most banks and NBFCs have systems and procedures in place to disburse any loan. And these systems sometimes become a tedious process for the consumer. On the other hand, fintech startups override this mechanism with the help of technology. They can thus provide instant personal loans at the click of a button with quick approvals and fast disbursal of the loan amount.
  • Complete Credit Assessment: Fintech companies provide consumers the benefit of a complete credit assessment. Companies that have a specific credit assessment mechanism in place are a beneficial choice for consumers. It also reduces the chances that the loan may get rejected.
  • Data Security: Data security is the most imperative criteria before choosing a fintech lending option. Most fintech companies ensure that they have regular security audits and the appropriate certifications to ensure complete security of consumer data. Before making a choice, check if the company has sufficient data breach disaster management systems and protocols to see if they are well equipped to deal with any fraudulent situation.
  • Integration Capability: Business is always a multi-party activity. So before you choose a fintech company, research how well the company is equipped to interface with other third-party vendors, payment gateways, etc. The prompt and real-time response, smooth integration capabilities are the signs of a good fintech company.
  • New Innovations: In terms of products or technology, the customer is always looking for more. Millennials are highly technologically dependent on guiding them in their financial decisions. It is advisable for a Fintech company to make use of Artificial Intelligence to assist consumers in making asset or financial management decisions. Advanced technologies are used to help users to identify risks and to monitor and neutralise them.

Enabling customers to compare and decide the best for themselves will help them to create endless opportunities.

Fintech is, undoubtedly, changing the face of how we conduct business. And with this wave of digitization, customers must make informed choices to make the most of this fintech revolution’s opportunities.

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Shiv Nanda is a financial analyst who currently lives in Bangalore and works with MoneyTap, India's first app-based credit-line. Shiv is a true finance geek, and his friends love that. They always rely on him for advice on their investment choices, budgeting skills, personal financial matters, and when they want to get a loan. He has made it his life's mission to help and educate people on various financial topics, so email him your questions at [email protected].
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