Fintech Services To Look Forward to in 2019
Technological disruptions such as finance technology services have penetrated the market by offering cutting edge solutions. These services have staggering effects on how traditional financial services are being provided. To deal with this competition, traditional financial institutions are looking inwards and are driving innovation. At the same time, e-commerce giants, mobile payment applications, traditional financial institutions, and other community banks are fostering relationships with fintech firms to build their capabilities and improve their offerings. At present, there are several financial technology companies gathering pace in the market that are offering unique facilities to access immediate funds.
Here is a snapshot of some of the key finance technology service companies that will surely create an impact in 2019.
Splitit is a finance technology company that offers a buy now and pay later service to online buyers. The application works on a business-to-business model and offers partnership with e-commerce vendors and its patented payment platform. Through this platform, online retailers can easily offer installment facility to its buyers. At the same time, buyers can buy the products and services using a credit card that can be paid later at a zero interest rate. In addition, the need to go through a credit check is eliminated as shoppers are using their existing line of credit instead of availing a new loan.
This financial platform is disrupting the e-commerce markets by not just splitting payments but expands the customer purchase basket. With this facility, online retailers also benefit as it results in increased sales as compared to sales generated during flash sales and discount cycles.
RazorPay is another fintech company that offers easy financing facility to small business owners. At the time when business owners are plagued by the question of how to raise loans for business, Razorpay offers a major relief. The company is a small payment gateway which provides small working capital loans to companies which need immediate funds for managing their operations. The key benefit of the facility is that it offers collateral free loans are provided to business houses to solve liquidity and cash flow challenges.
Commonbond is an online financial service provider which mainly caters to educational loan requirements of students. With its unique offerings, the platform aims to make student loans more accessible and attractive. The education loan that it offers is available at lower interest rates and can be sought through a simple application process. In a short span of time, students can get information on applicable interest rates on different types of loans through the platform. This eliminates the need of visiting each and every bank to understand the type of loans and applicable rates. The platform works through a mechanism under which once the loan is approved and released, the lenders are paid off by the service provider itself. This reduces the chance of any default and Commonbond becomes the creditor to whom the borrower owes money to. This reduces the risk of the lender and increases the willingness to provide loans.
For small business owners, immediate point-of-sale is essential to build a strong business case. iZettle, is one such mobile payments company that provides such a facility for small business owners. Apart from a portable point of sale facility, the payments company provides free sales analysis and a card reader. This enables small business companies to build capabilities equal to what a large business house would offers.
The service also has a follow-up tool through which small businesses can optimize their sales process, generate summaries of orders to organize things. In addition, it also provides a log in facility to allow other member staff of the company to access the various features that it offers.
Velox is an online digital lending platform that is powered by artificial intelligence to provide a seamless and omnichannel lending experience. As getting loans from a bank involves a lot of hassles, this digital lending channel has created a breakthrough by offering a high-velocity home loan facility. The platform optimizes and automates lending back office process and at the same time enhances the front-end operations by leveraging data.
The advent of such smart fintech services will transform the way the lending services are being delivered. This will derive competition compelling traditional institutions to give up age-old methods of doing business. Online retailers, banks and even a loan applicant are shifting towards digital solutions as it has the capability of making complex tasks easier. With the advent of these services, companies can now offer advanced services at less cost. This has become the driving force for finance technologies.