This is the time to be an entrepreneur. Never has it been easier to register a business, engage the public and perhaps most importantly – raise money. Thanks to the (rather sudden) rise of the FinTech marketplace, thousands of entrepreneurs are able to participate in a streamlined lending process that’s no longer bogged down by tedious paperwork and idle time. Here are three FinTech Developments that will continue to benefit borrowers in the long run.
1. ALL Generations Are Now Embracing and Relying on Mobile Tech
From checking weather reports to doing some last-minute holiday shopping, we are using our mobile devices for virtually everything. Thanks to FinTech, we can now lend and borrow just as conveniently. The nine-to-five banking and financing days are all but completely minimized. Most early-stage growth companies are strapped for time, but their need for financing is arguably greater today than it ever has been before. Businesses are looking to skip the chit-chat and use their time more efficiently – especially Millennials.
2. Despite Looming Interest Rate Hikes Ahead, Entrepreneurs Will Still Seek Capital
Entrepreneurship is not going anywhere. Furthermore, higher interest rates make it more profitable for conservative lenders to open up the purse strings. When lending is profitable, banks will provide capital. This is likely to cause a significant spike in fundraising interest in general and businesses will listen to all options on the table.
3. The Industry is Retooling and Becoming More Reliable
Despite scrutiny, the FinTech industry is without a doubt working. Growth companies are receiving funding and lenders are being rewarded with hard profits. It’s a great time to be a borrower. Costs are lower for lenders and for borrowers, and capital is absolutely available. Loans are being processed more quickly than ever before. We are long past the 1950s way of banking and we’re never going back. The FinTech marketplace has also proven to be a great alternative for under-served communities and minority-owned businesses.