BIS Report: The Impact of Financial Technology (Fintech) on Monetary Policy – A New Era in the Credit Landscape
P2P lending: Platforms like LendingClub or Prosper directly connect borrowers with individual lenders, bypassing traditional banking systems. Borrowers can obtain loans for various purposes, such as debt consolidation, home improvement, or small business funding.
Online personal and business loans: Companies like SoFi and Kabbage respectively provide personal and business loans. They use digital platforms to streamline the application process and often receive approvals and funds faster than traditional banks.
Microfinance and microloans: Financial technology companies like Kiva provide small loans to entrepreneurs in developing countries where traditional banking services are limited. These loans are crucial for starting or expanding small businesses.
Accounts receivable financing: Platforms like Fundbox offer businesses an option to borrow based on their customer’s outstanding payments, helping them improve cash flow while waiting for invoice payments.
Buy now, pay later (BNPL) services: Financial technology companies like Afterpay and Klarna allow consumers to make purchases and pay in installments, usually without interest. This is becoming increasingly popular in online retail.
Mobile lending applications: Apps like MoneyLion and Dave provide small, short-term loans, often designed to help users manage expenses until their next paycheck.
Crowdfunding: Platforms like GoFundMe or Kickstarter, although not offering loans, provide a way for individuals and businesses to raise funds from a large crowd, typically through the internet.
