Sep. 09 2016
Circle, the Bitcoin wallet start-up, has been granted an electronic money license allowing it to store British pound sterling by the Financial Conduct Authority, Britain's top financial regulator. This means that British people will be able to use the Circle app to transfer funds to one another, or as Circle puts it, make “social payments.” The license, which is technically valid across the Euro-zone, has also enabled Circle to establish a business relationship with Barclays bank. Circle has attracted plenty of attention and investments from other financial institutions, but this is the first time a global bank has agreed to work with a Bitcoin company. Circle has a similar license to transfer money within the United States.
Circle is an app that allows friends or family members to send cash to one another without all of the archaic and frustrating obstacles of traditional finance. Circle prides itself on using open internet standards and procedures to offer this service for free while maintaining a risk adverse stance and technologies like its innovative AI risk engine which works to keep the money of its users safe. Now that Circle is able to operate in the UK, users will be able to transfer funds between dollars and pounds.
Sep. 01 2016
Many Americans at the lower end of the economic ladder struggle with money management issues. Numerous households live paycheck to paycheck, saving too little and considering investment too late. The poor and minority groups are often subject to debt traps, high-risk lending practices and redlining. Those without access to banks are faced with paying high fees and additional charges from check cashers, payday lenders and other alternative financial services. As policy action has yet to assist such groups, the market has shifted to address the needs of poor and minority groups. Financial technology companies (FinTech) are bringing banking services to those that want to manage their spending, save money and plan for their financial future. These services were once almost exclusively offered by banks but now FinTech has brought these money management services to this underserved population.
FinTech has now made it possible to access transaction and underwriting services for all. Individuals can select from a number of financial services from financial technology companies, including:
Aug. 20 2016
Once upon a time, financial transactions took place in banks. Whether you wanted to open a savings account or invest in the stock market, the decisions were largely made in a facility with trained financial experts to help consumers manage their assets and investments. For customers, this meant that most interactions were face-to-face. You had a personal banker or a money manager who could look at your specific set of circumstances and help you make decisions based on their wealth of advanced knowledge about current finances. But it also had a drawback — time. It’s time-consuming to set appointments to see people about your finances. And it’s really only necessary for specific things. Today’s consumers are educated. They want to make decisions about their own investments. They want to have real-time access to their portfolio.
Just like every other industry, finance has seen major booms with the advent of technology. As society evolves toward instant user access, finance is keeping pace with new answers in mobile banking. Companies like Varo are offering consumers a mobile banking option. With this startup, customers can manage all of their financial needs through a secure mobile app. Varo customer might use a digital financial coach to help them manage the whole picture or just to take care of day-to-day matters.
Aug. 3 2016
Although the United States is a wealthy nation, the gap between rich and poor Americans is ever-widening. Resources that are available to the wealthiest citizens are often woefully out-of-reach of the United States' poorest. Financial technology--commonly known as "Fintech"--has the potential to transform the lives of these lower-income Americans.
Many Americans have relatively little access to traditional banking alternatives. As CB Insights noted at a recent event, the United States Census has revealed that about 10 million American households lack any bank account, with approximately 20 percent of households being "underbanked".
Jul. 22 2016
Why Lendit is becoming one of the most important events for internet lenders around the world.
The LenditUSA 2016 event was bigger this year than ever before. In just three years, the LenditUSA gathering of 375 industry professionals has blossomed into a global event with well over 3,500 in attendance. Labeled as a "must-attend" industry event, it’s safe to say that Lendit has solid footing in the online lending market.
Lendit events are by no means a place where industry leaders play nice as the vibrant discussions often result in disagreement. However, these thoughtful and healthy debates look at the online lending industry from unique angles that inadvertently benefit all parties involved. By the end of the event, sector growth is sparked within the industry, and the participants come to the understanding that no plan is completely flawless.
Jul. 4 2016
Technology is changing the way we do everything. We shop online with Amazon and other internet vendors. We find vacation accommodations from alternative hosts online with Airbnb. We ride share with Lyft and Uber instead of using taxi services. Finally, technology is updating and changing the way we manage our finances. FinTech is in the category of businesses that uses innovative technology to operate in the financial services world. While several FinTech companies are working to support traditional financial services, others are going into direct competition with banks, and they have a good chance of winning. Here’s why.
A recent Goldman Sachs study predicted that FinTech alternative lenders could take $4.7 trillion in business away from traditional banks because the FinTech lenders are easier to use and have fewer associated fees. An organization called Lending Club helps borrowers connect with investors. The difference is that the investors are a group of normal people who want more than the half-percent of interest that traditional banks are offering on savings. Additionally, FinTech businesses are able to offer loans without the rigmarole that traditional banks inflict on their customers, making borrowing, transferring of funds, and personal financial management easier for the customer.
Jun. 17 2016
The world continues to change and evolve to keep pace with emerging technologies across all sectors. Fintechs, or financial technology firms, have posed a threat to traditional banks for years, offering many banking and financial services in a more user-friendly and cost-effective way. From wealth management to lending and everything in between, fintechs are in tune with changing customer needs and equipped to meet them in efficient, effective ways.
The subprime crisis that hit just after the mid-2000s caused governments and consumers to demand more options in the financial services space. Ripe to be improved by digital innovation, it’s no surprise that the banking and financial industries are experiencing a transformation. Fintechs are the new players stepping up to fill this role.
Jun. 6 2016
In the past months a new type of loan service has shown signs of rapid growth – Fintech loan shopping tools. At first glance, these new solutions sound simple enough; a way to browse for available loans via online portals. But the success of Fintech services is based on much more than just that, and the trends enabling that success are changing the personal finance market as a whole.
Traditional loan searching can grow complex – at the most, it involves picking a mortgage broker and staying in contact, or driving from lender to lender yourself if you want to compare different loans. Repeat the process for an auto loan, personal loan, home loan…and the time spent adds up. Today's loan shoppers are more interested in a way to compare all different types of loans, from one spot – preferably without fees. And Fintech companies are rising to the challenge, creating new web portals that allow users to immediately switch between different loan solutions on demand. Skipping from loan consolidation options to home equity loans to auto loans allows for a much clearer picture of all debt options…and modern borrowers love looking at their options.
May. 22 2016
Once considered a very small niche within the lending market, peer-to-peer lending is starting to go mainstream. Recently, two such lenders, Lending Club and OnDeck Capital, have both raised several million dollars each by going public through their respective IPOs. What is the secret to their success? Millennials. More and more millennials it seems are establishing businesses and are in need of raising capital. Previous generations went through traditional sources such as banks, but millennial business owners appear to prefer peer-to-peer lending groups. Here are five reasons millennials prefer alternative lenders rather than traditional lenders.
May. 14 2016
With the growing popularity of marketplace lenders, traditional banks are taking notice of the emerging competition. Meanwhile, marketplace lenders are looking to grow their currently niche client base. Instead of stoking a rivalry, however, some financial institutions from both groups have decided to team up. Such partnerships promise the convenience of marketplace lending with the familiarity and performance of a brick-and-mortar bank.
If you aren't sure what marketplace lenders are, they're non-banking financial institutions that facilitate interactions between large numbers of borrowers and lenders with the aid of technology. That's a mouthful, but it's essentially the same model we have here at LeadsMarket.com. Marketplace lenders operate entirely online through high-tech platforms, serving up convenience while eliminating a lot of the costs associated with traditional banks. This often translates into a speedy, high-quality customer experience.
Mar. 27 2016
Both payday loans and installment loans are often described as “small dollar, high-cost loans,” because they are usually for relatively small amounts of money at high rates of interest.
There are many options, but a payday loan will typically be for an amount between $100 and $1,500 dollars for a period of no more than 30 days. As the term “payday” suggests, the idea is that the loan should be repaid when the borrower receives their next paycheck – typically within two to four weeks. The payday loan industry is currently estimated to be worth approximately $38 billion.