Miami, Florida – March 21, 2018: Traditionally, banks have had the monopoly in the financial world, continually putting borrowers under the hammer by charging them with high-interest rates. Fintech Lenders is a new financial technology startup which offers fast money for debt consolidation by providing peer-to-peer models, crowdfunding, and contactless payments.
The emergence of online finance entities is set to change the use of technology and innovations to change the way people and businesses have access to money. Their attractive, fast loans facilities are now gaining the mainstream popularity, attracting constantly growing numbers of consumers, entrepreneurial start-ups, established small businesses and institutional investors.
The experts believe that their financial lending structure will be especially beneficial for the countries like Latin America and the Caribbean, where a significant number of the population still don’t have access and do not qualify for a bank lending. The ease of access, desktop & mobile, simple user interface and straightforward online loan process can open up the businesses to get fast money, no matter their bank credit score. The rapid approval process of 24-48 hours will explode the popularity of Fintech lending companies like Lending Point, LendingClub and Prosper in the USA, Afluente in Argentina and the title loans’ Fintech Company Panacredito in the Caribbean.
The emergence of the United States as one of the world’s most advanced markets for technology-enabled online alternative finance channels and instruments has led to a sustained increase in the total US volume to $34.5 billion in 2016, a 22% increase from the previous year. With a similar speed and reducing significantly the time to market, the online alternative finance industry is expanding in Latin America and the Caribbean (LAC).
The industry’s growing popularity in LAC can be attributed to limited access to credit for many consumers and small businesses from the incumbent banking system. From 2015 to 2016, the LAC market experienced a growth of 209%, the largest recorded to-date. The alternative finance marketplace is primarily focused on small business financing, their platforms automate huge parts of the underwriting process and plug into data sources. Of the $342.1 million in 2016 in Latin America, more than $230 million came from the alternative finance industry sectors dedicated to business finance.
Within Latin American and the Caribbean (LAC), Mexico, which is the fastest growing market in Latam is already responsible for 33% of the total regional volume, Chile for 29%, and Brazil for 19%. As of this year, the Dominican Republic in the Caribbean is showing some significant improvement with several new Fintech companies and lenders with the purpose to ease the access to money for the people with bad to medium credit score or with no credit history.
A representative of the Caribbean Fintech Lender was quoted as saying, “Our process is simple, we are focused on offering fast loans and increase customers approvals when they are secured by a vehicle title, mortgage or a guarantor. Customers apply for a loan in less than a minute, and we are compromised to answer in as much as 24h. Most of our loan solicits are for debt consolidation and for small businesses, where people are looking for fast money and no hustle in long paperwork processes, and this is what we deliver.”
5 Fintech lenders disrupting the banking industry by offering fast money online to different consumer segmentations in America are:
SoFi, USA: SoFi offers student loan refinancing and other services to Millennials. Founded in 2011. Visit: www.sofi.com
LendingPoint, USA: LendingPoint offers personal loans for borrowers with average to bad credit, primary to debt consolidation. It was founded 2014. Visit: www.LendingPoint.com
Prosper, USA: They connects borrowers and investors for unsecured personal loans. Founded in 2005. Visit: www.prosper.com
Panacredito, Dominican Republic: Panacredito provides a fast title loans online, apply in less than 1 minute get approval in 24h. It was founded in2011. Visit: www.panacredito.do
Afluenta, Argentina: This is a lending marketplace which connects creditworthy borrowers with investors and was founded in 2010. Visit: www.afluenta.com
*Source: The 2017 Americas Alternative Finance Industry Report, by Cambridge Center for Alternative Finance, Cambridge University, POLSKY center for Entrepreneurship and Innovation, The University of Chicago, Chicago Booth, University of Chicago Booth School of Business