TOP 5 FINTECHS PROVIDING LOAN SERVICES
What is a FINTECH LOAN?
To solve the traditional bank loan process in an easier, faster, and more accessible way, modern Fintech companies continue to use the latest financial technologies in their loan services, such as artificial intelligence, data, blockchain, and others. As a result, consumers, lenders, and enterprises can choose the loan services that suit them quickly, safely, and efficiently.
So, in this article, we present five fintech companies that are the best and leading in innovation in their field.
1. Avant
(Address: Chicago, Illinois, USA)
Website: https://www.avant.com/
Company Activity
Avant was founded in 2012 to improve the borrowing experience for middle-income consumers(underbanked). The company has since streamlined online borrowing and helped over 1,500,000 people get the funding they deserve. Avant is backed by some of the most well-regarded investors in the fintech space.
FinTech Business Models
Avant uses automation and artificial intelligence (AI) to simplify the loan application process(Amazon web service or AWS-based DataRobot's Managed AI Cloud). Thus it can easily create models and analyze new data sources quickly, directly addressing the Avant DataRobot API, integrating it with the internal operating system, and providing customers with fast, accessible, and low-interest loans.
The company's latest fintech tool to market is Avantcard. Briefly, users can borrow as much as they want within the permitted limits by using a card with access to this line of credit.
Success Factors
Users can quickly get loans from $2,000 to $35,000 in just one day by filling out their personal information and digitally signing the corresponding loan agreement. The APR (annual percentage rate) ranges from 9.95% to 35.99%.
Since 2012, Avant has provided over $6.5 billion in loans and up to 400,000 credit cards to more than 1.5 million customers.
2. OnDeck
(Address: New York, USA)
Website: https://www.ondeck.com/
Company Activity
Founded in 2007, OnDeck is a financial platform that offers personal loans and lines of credit to small and medium-sized businesses (line of credit or services provided by lenders such as banks, credit unions to individuals, and businesses within a limited period).
FinTech Business Models
This FinTech company uses data aggregation and digital payment technology to assess the financial status of small and medium-sized businesses, provide appropriate capital, and create payment structures. In this way, business owners whom traditional banks have rejected will be able to get the most suitable loan for their situation in an easy way.
Success Factors
Consumers can apply for a loan through OnDeck in 10 minutes and get a loan the same day. APR (annual interest rate)= 10.99% ~ 11.89%.
Unlike most online lenders, Ondeck offers a variety of loan types, and users can choose the payment amount and repayment period according to their conditions. OnDeck currently has more than $10 billion in loans to businesses. According to the company's research, OnDeck's first $3 billion loans had an economic impact of $11 billion and added more than 74,000 jobs across the United States.
3. PROSPER
(Байршил: Сан-Франциско, Калифорниа, АНУ)
Вэб хуудас: https://www.prosper.com/
Company Activity
The company is a leader in peer-to-peer lending services. And It started its operations in 2005 and became the first company to provide peer-to-peer loans to businesses, entrepreneurs, and individuals. Headquartered in San Francisco, USA, Prosper is one of the largest online lenders in the country.
FinTech Business Models
The company uniquely connects consumers seeking loans with lenders and institutions willing to invest. Through Prosper's lending platform, borrowers can get unsecured loans with interest rates ranging from 5.99% to 36% and receive $2,000 to $35,000 in funding from investors (individuals or institutions) for each loan application. To apply for a loan, you only need to fill out a short survey that includes information such as the loan amount, the purpose of the loan, etc., so that the Prosper platform will recommend the loan and potential lenders that best suit the loan applicant's needs.
Success Factors
The company has made over $13 billion in loans, extending up to $1 million to 850,000 people.
Prosper's unique feature is that users can set their interest rates regardless of the customer's credit history and negotiate with borrowers. The principle is that borrowers and lenders agree and arrange by listing the amount of credit they want to receive and the interest they want to pay. On the other hand, investors or lenders write the amount of interest they wish to receive. Since the main goal is Peer-to-peer (inter-customer), all profits except 1% of Prosper usage fees go to the borrower's pocket.
4. SALT LENDING
(Address: Devner, Colorado, USA)
Website: https://saltlending.com
Company Activity
SALT means Secured Automated Lending Technology. This lending platform allows you to get loans by pledging your blockchain assets or cryptocurrencies.
FinTech Businsess Models
SALT Lending believes that blockchain assets are decentralized, safe for peer-to-peer transfers, have high profits for storage and converting assets, and are transparent. Through SALT Lending, borrowers can receive 1-36 month loan terms based on Bitcoin, Ether, Litecoin, and Dogecoin as financial collateral for their cryptocurrency. SALT uses blockchain evidence-based blockchain and chain-based intelligent contracts for secure cryptocurrency transfers. Evidence-based blockchain is defined by experts (EBB) as an attempt to make wise decisions after considering the conclusions made by professional organizations, research experts, and shareholders.
Success Factors
In the lending industry, SALT is currently the only blockchain-based lending platform. Using SALT, you can be exempt from traditional borrowing taxes, including capital gains tax.
The company, which first started operations in Denver, the USA, in 2016, has expanded its operations to New Zealand, Brazil, Switzerland, and Great Britain.
5. SoFi
(Address: San francisco, California, USA)
Website: https://www.sofi.com/
Company Activity
SoFi is an abbreviation of Social Finance. The company, valued at more than $4 billion, offers financial services like student loans, personal loans, investments, credit cards, and home equity loans. You can use that application through your phone and other smart devices.
FinTech Business Models
SoFi aims to provide its users with comprehensive cash management and personal finance tools through its platform. In doing so, it offers its customers all the management products that can borrow, save, spend, invest, acquire and protect money. For example, SoFi Money is a managed account with no fees and cash rewards. This service allows easy cash transactions, and customers can reimburse ATM service fees. Moreover, using the SoFi Invest investment application, it is possible to trade stocks and ETFs (exchange-traded funds), buy cryptocurrencies and invest through automated services. Personal loan services include student loans, small business financing, simple personal loans, and family loans.
Success Factors
SoFi offers its customers low-interest loans with flexible terms, free to apply any time of the week. SoFi is also unique in providing various advice and programs for its customers. It includes:
-Professional orientation
- Directory service
- Advisory service for members
-SoFi VIP service
-Financial planning, etc.
To date, the company has raised $45 billion in loans and $2.3 billion in funding and has 1 million users.
эх сурвалж:
Top FinTech Companies in Lending Space - Empirica
18 Top Fintech Lending Companies To Know 2021 | Built In
Line of Credit (LOC) Definition - Investopedia
evidence based blockchain - ResearchGate