Investorideas.com

Call 800 665 0411 to learn about our services for your stock

Search   Follow Investorideas on Twitter   Investorideas is on Facebook   Investorideas is on Youtube   Investorideas is on Pinterest  Investorideas is on stocktwits   Investorideas is on tumblr   Investorideas is on LinkedIn   Investorideas Instagram   Investorideas Telegram   Investorideas Gettr   Investorideas RSS




Share on StockTwits

The future of finance

 

June 21, 2018 (Investorideas.com Newswire) Alongside technology, the world of finance is developing at a fast pace. In fact, finance and technology are very much interconnected in today's world and making finance more and more digitally focused. We consider what the future of finance might look like.

Faster Underwriting

When you apply for a loan, mortgage or credit card potential lenders will run searches on your credit history to determine your credit score. Of course, the better your credit score, the more likely you are to obtain financial assets. The way this is done is through underwriting.

Underwriting involves an analysis of your initial application and your personal details such as age, employment status, monthly income, whether you are a homeowner or a tenant and whether you receive any benefits. Next, detailed checks will be made on your credit to see if you are an eligible candidate.

However, this process has historically been rather slow. Through the use of big data and machine learning, we should see lenders having a better idea of what makes a better customer and for their machines to be able to process it, without manual underwriting. Subsequently, this should result in faster writing, faster approval for customers and loans being approved much quicker.

Faster Payments

Research conducted by the Royal Bank of Scotland claim that blockchain technologies are being used to support a new banking industry clearing system which is very similar to the UK's existing "Faster Payment" schemes.

Blockchain was originally developed for the digital currency "bitcoin", but it has now found purpose within mainstream banking. The blockchain is an incorruptible digital ledger of economic transactions. Blockchain can be programmed to record virtually everything of value, and not just financial transactions.

The blockchain practically cuts out the middle-man involved in transactions, consequently speeding up the process. This means you can forget waiting a whole day or a few hours for an online loan to come through, you can start thinking about a mere five minutes.

Better choice of products

With the rise of the online lending industry, more and more products and deals are becoming available. In the past, those with poor credit score found that it was almost impossible for your loan application to be accepted.

Now, there are plenty of options for those with bad or no credit; most notably in the form of collateral loans or guarantor loans. Instead of traditional online payday loans, we are also seeing more overdraft facilities where loans amount and repayments can be changed each month to suit the borrower.

Lenders are also showing signs are being far more flexible with repayments. Take for example, flexible mortgages. These allow you make additional payments in advance to reduce your future balance, take a break from payments (great for periods which are particularly expensive, e.g Christmas) and make underpayments to make the amount you pay less, then overpay at a later date.

Replacement of money?

With the growth of cryptocurrencies in the last year, we could soon start seeing loans paid out in bitcoin or ethereum and perhaps lower interest rates if they fall under unregulated activity. In addition, the sharing economy shows new attitudes towards borrowing and lending, with new apps dedicated to exchanging good and services instead of money such as massages, meals and artwork.

Author

Daniel Tannenbaum is a marketing consultant who has worked with several loan and finance providers in the UK. He is a regular contributor to The Huffington Post, Business.com and TechRound.

Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investment involves risk and possible loss of investment. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Contact each company directly regarding content and press release questions. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. More disclaimer info: http://www.investorideas.com/About/Disclaimer.asp. This article is paid for published third party content and not the content of Investorideas.com . Read our article disclaimers and crypto disclaimers at http://www.investorideas.com/About/Disclaimer.asp. Learn more about posting your articles at http://www.investorideas.com/Advertise/

Please read Investorideas.com privacy policy: http://www.investorideas.com/About/Private_Policy.asp


Investorideas.com features content for Bitcoin, Blockchain and Digital Currency Stocks and ICO's at Cryptocurrencyinvestorideas.com, Blockchaininvestorideas.com and Investorideas.com

View our growing Bitcoin, Blockchain and Digital Currency Stocks Directory

http://www.investorideas.com/Bitcoin-Cryptocurrency/Stocks_List.asp

Join our LinkedIn Group Blockchain and Digital Currency Stocks and ICO's Latest News and Commentary https://www.linkedin.com/groups/13560073

Check out our crypto blog on blogger.com

https://cryptoandblockchainideas.blogspot.com/

Recently added Bitcoinandblockchainstocks.com at http://www.bitcoinandblockchainstocks.com/