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Wealth Management

7 WAYS FINTECH HAS CHANGED THE PERSONAL LOANS INDUSTRY

Lily Tran is a content writer, working for MoneyTap

 

With the technology behind the simple, secure, and fast lending process, fintech has completely changed the way we borrow. Getting a personal loan approval that would have taken weeks previously can now be done with a click of a button or two.

 

Here’s how fintech revolutionized the lending process:

  1. Innovative Lending Models

The traditional model of lending was to accept deposits from customers and extend loans to other customers. This model helped traditional banks earn money by charging borrowers more interest than they paid to savers.

Fintech companies have completely altered this lending model. They have created a peer-to-peer lending platform where individuals can earn interest by lending their money to other individuals. For brokering the connection, the fintech company charges a small fee.

  1. Unique Financial Product Offerings

Thanks to fintech, the financial services industry has witnessed a healthy product expansion in the lending space. The fintech companies have entered the market with an array of unique lending products, such as education loans, personal loans, debt consolidation loans, personal lines of credit, vehicle loans, travel loans, wedding loans, etc.

  1. Lily Tran

    Fast approvals and Quick Access to Funds

The biggest change we have seen in the lending space after fintech infusion is the speed at which the loans are processed. Usually, whenever a customer fills an application for a personal loan, it takes weeks to get processed, approved, and disbursed.

With technology at the back of every innovation, fintech companies have created a quick process that ensures quick loan approvals and disbursals.

  1. No Need for Physical Visits

Previously, if you wanted to apply for a personal loan, you had to make multiple visits to the bank for filling up the forms, getting the loan approved, submitting documents, etc. These visits over a period of time would get cumbersome.

Fintech personal loan apps have made it extremely easy for you to apply for a personal loan. With a 100% digital process, you can get your loan approved in minutes and your loan released within 24 hours or in a couple of days – all these you can do from the comfort of your home and with minimal or no documentation.

  1. Automated Underwriting Process

Fintech companies have harnessed data in innovative ways, which has helped them to automate the underwriting process. This automation includes risk assessment, which speeds up the lending process, unlike traditional banks that still rely on humans to handle this aspect of the process. This lowers the operating costs, the benefit of which can be offered as competitive interest rates to consumers.

  1. Embracing More Borrowers

The new lending models are able to offer loans to more borrowers that were underserved by traditional banks. Borrowers like small business owners, students, and consumers who have always found it challenging to access loans from traditional banks can now get the money they need from fintech companies.

  1. Security Assurance

Since technology is the backbone of fintech companies, their focus is on safety. They run algorithms and protocols that safeguard consumer details and protect them from fraudulent activities.

 

Footnotes

Fintech companies are changing the lending space for good. The changes affect every aspect of the lending process – how customers engage with lenders, how loan applications are processed, how profits are generated, and how risk assessments are carried out. Fintech will continue to evolve and revolutionize the personal lending space to make personal loans more accessible and more affordable to a wide range of people.

 

Wealth Management

CHECKLISTS FOR CHOOSING A CORRECT TRADING MENTOR

The trading mentor should be proficient in the particular field and have proper cognition about the field. The duty of the mentor is to help the beginners to improve their trading performance. If the mentor has a lack of experience, he or she will not able to help others. The newcomers face different types of problems when they arrive in the field of Forex, so they become disoriented. At this time, a trading coach can help them to deal with the situation. So, this is very important to choose a good one. Let’s know about the checklist for making the selection of a good one.

 

Full-Time Trader

The mentor should be a full-time trader so that he or she can understand the current market position. If the person cannot practice now, he or she will not able to give the proper solutions to the beginners. So, the traders who trade regularly by managing the money can help others. You also find out that he or she has proper experience in your zone. When the person will invest time to learn about the market, he or she will able to gain more knowledge and ability to help others.

 

Be Successful

If the coach is not successful in his or her field, he or she will not able to help others. Successful investors have the power to inspire others. The fresher will also get motivation when he or she sees that the mentor has gained success. So, they try to learn from him or her properly. The person also needs to share his or her wisdom with others. People should bear in mind that 5% to 10% of traders are successful in the Forex field. So, when you make the choice, you have to be careful. You can also see the features of Rakuten. And we believe, if you analyze their premium offer, you will definitely say let’s trade with Rakuten as they provide professional environment to the retail traders.

 

Motivational and inspirational

If the person cannot able to motivate others for working hard, he or she will not become a good mentor. The coach should inspire the beginners so that they can go forward. The newcomers cannot ignore the emotional components so they cannot able to think for the better. In this situation, the coach can help by inspiring the. If the professional able to increase the confidence level of the fresher by motivating them, you should choose him or her. On the other hand, some are not so bothered about the beginners’ performance, so they should not choose them.

 

Should Respect the Fresher’s Trading Style

The investors have their own styles and preferences. People also need to give priority to their own patterns which will help them to trade independently. The person should try to demonstrate their individuality in the Forex market. If the coach tries to change the style of the trader, this will not better for him or her. When the mentor will not show proper respect for your trading style, you will not able to be comfortable with him or her. Here, he or she will always try to change you. So, investors should aware of this fact.

The coach will help the investors to identify the new opportunity and will increase the thirst for gaining knowledge. They will not able to ensure success but they can able to show the right path. Some mentors are not able to provide authentic information. So, this is not an easy task to find a suitable one. An honest coach can support people in a difficult situation. On the other hand, a dishonest mentor can destroy the career of the fresher. So, the investors are required to check the review and they can also take suggestions from the others to select a suitable person. If the coach demands money from you, then you should understand that he or she is not the right choice.

 

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Business

THE FUTURE OF SAVVY TECH PURCHASES IS KNOWING WHEN TO BUY

There’s no mistaking the impact technology has had in our lives. Once a novelty, technology has now infiltrated every aspect of modern society, and technological advances continue to bring new dimensions to modern living. Yet for all the good that technology brings us – and despite the costs associated with production falling year-on-year – purchasing electronics is often a significant investment.

According to new research by Carphone Warehouse, the average price of electronics in the last year is just shy of £500 at £497.70. Consumers looking to make savvy savings on big tech purchases must both understand what the industry average is for the product category they’re interested in, and learn when prices will be lowest so they can make the purchase at the right time. The electronics retailer outlined the following tips for consumers looking to take stock of technology prices.

 

  1. Know what the average price is, so you can spot the biggest savings

The first step to being able to haggle a better price is knowing what benchmarks to look out for. While you can choose to go under or over the average price – high-end models are often priced significantly higher than average, after all – it can still be useful to know what to compare prices against. The average smartphone currently retails at £527.60, laptops at £680, TVs at £712.31 and digital cameras at £782.60.

As mentioned, there are significant differences between the price of budget and top-end items. For example, while you could get a budget phone such as the Nokia 1.3 for just £65, an Apple iPhone 11 Pro Max could set you back £1,249. Similarly, while a low-end camera like the Nikon Coolpix B500 costs around £205, the camera behemoth that is the Canon EOS 5D Mark IV clocks in at a whopping £1,700.

 

  1. Before you buy, consider any upcoming sales

Once you’ve figured out what you want and the price you’re willing to pay, it can be tempting to make your purchase immediately – for fear of missing out, if nothing else. However, using the sales to your advantage could result in some nifty savings, while keeping abreast of the consumer retail industry could also help you buy at just the right time. Below is a short rundown of some key dates to keep in mind:

January: The start of the year usually sees retailers clearing their Christmas stock, with smartphones, cameras and TVs offered at sale prices. January is also when the Consumer Electronics Show (CES) is held; an event in which new cameras are often announced. If you spot a gem in the CES crowd, wait a couple of months and you could see last-gen models fall in price.

February: As well as Valentine’s Day sales, February sees the Mobile World Congress (MWC) and the announcement of new Sony releases. This month is also a great time to buy the Google Pixel and other smartphones – again due to their release cycle – as well as nab yourself a bargain camera, TV or laptop.

March-April: Look out for a ton of new releases in the spring months, with Huawei, Samsung and Sony releasing their new smartphones, and LG, Samsung, Sony and Panasonic announcing their new TV ranges.

July, August, September: The summer months bring back-to-school sales that typically see student essentials at lower prices. You may be able to enjoy a wide range of deals on TVs, laptops, computers and more during this time. Keep in mind that July is also when Intel and AMD announce their new releases. Responsible for many of the processors that make up the backbone of much of our electronic products, Intel and AMD inspire many brands to lower their prices in anticipation of incorporating their new, advanced processors into their product lines.

November-December: Black Friday and Cyber Monday are undoubtedly the biggest sale events in the consumer electronics space, with deals, discounts and flash sales offered across the entire gamut of the tech world. It’s the optimum time to invest in premium brands, including Apple, Samsung and Google.

 

  1. Embrace the pre-order period for additional bonuses

If you’re an early adopter and only the latest innovations will do, you may not be keen on last-gen products. But keeping up to date with the latest gadgets needn’t mean your bank balance has to take a hefty hit. While costs will naturally be higher for new releases, ordering during the pre-order period could mean you’re able to take advantage of bundle deals or other freebie items provided by the retailer to entice uptake. Sign up to notifications on the products you’re interested in, so you’re forewarned and ready for the pre-order period.

 

  1. Learn some insider tips to beat retailers at the price game

As a final point, when it comes to saving on tech-related purchases, it can be handy to understand retailer behaviour. For example, if you’re looking to upgrade your TV at a cutthroat price, aim for the 55” models. As it’s the most popular size, retailers tend to drop prices on these first in their holiday sales.

If you’re buying tablets, waiting until a new model has been released is usually the best time to get the best prices; last-gen iPads are often discounted a couple of months after a new release. Similarly, if Android tablets are your preference, all you have to do is wait a few months for the newest release to start seeing price drops. And if Kindles are your go-to tablet, it’s probably no surprise that Amazon is the best place for bargains, and particularly so on Amazon Prime Day.

There’s vast potential in technology – and consumer electronics are seeing more and more innovations every year. But, as long as retailer behaviour stays fairly consistent, the information above can help you comfortably get the most for your money.

 

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