We live in a world dominated by finance. It’s made it possible for people to purchase more than they’ve ever bought before. Now, we’re changing how finance is done by using new technologies. Finance has already been transformed by digital tech. Here are a few ways we’re doing finance differently, thanks to digital tech.
Cryptocurrency Opened a New Medium of Transaction
Nothing has been more revolutionary to finance than crypto. These digital coins operate on a blockchain. This is an immutable ledger system. That means nobody can tamper without from outside the network. Coins are created in a completely decentralized manner, bypassing traditional institutions.
They’ve made it possible to escape the traditional finance system. Some Turkish people have even been using crypto as their de facto national currency. High inflation has wrecked a terrible impact on most of the world’s fiat currencies. So, more people than ever have been flocking to crypto.
Hard Money Lending Has Gained Ground
Lending for real estate used to be strictly the domain of banks. Now, you’re able to obtain financing in much more creative ways. One of the fastest-growing segments of lending would be hard money loans. These don’t conform to traditional mortgage standards. You’re able to find short-term financing options from professional private money lenders. From applying for no income loans during your lunch break to buying a car without leaving the couch, technology has changed everything.
They’re usually used by people looking to flip a home. But, you’re able to close deals a lot faster by using them. When you make an offer with a hard money loan, it’s as good as a cash offer. So, sellers will be much more willing to work with you. They won’t have to wait for your mortgage to be underwritten.
Crowdsourcing Has Found Away Around Traditional Finance
Have you been struggling to save up enough money for a new car? If so, then you might want to hear about crowdsourcing. Crowdsourcing has made it possible to raise funds from your social network. You can completely avoid dealership financing by using it.
Simply post a story about how you need money for a car on a crowdsourcing site. They’ll navigate you through a campaign creation system. It’ll show you how to create a marketable campaign. Then, you’ve just got to convince other people to give you the money. A lot more people have been successful with these platforms than you’d think, too.
Also read: 4 Ways to Finance Your Tech Startup
Obtaining Car Loans Can Be Done Using Other Credit-Testing Methods
Your chances of securing a car loan used to live and die by your credit score. These days, companies use other methods to evaluate your creditworthiness. If you’ve been paying bills, you can probably use them to boost your score.
You could even apply for financing from your phone. You’ll be able to browse a whole network of potential lenders. Comparing all your options isn’t nearly as time-consuming. Back in the day, you had to visit all lenders in person. Now, you can submit one application to all the lenders. They’ll process everything as if you had sent them each an application.
You Can Apply for Financing on Anything Using Your Phone
As mentioned earlier, applying for a personal loan can be done from the comfort of your couch. You can even find loans available for people with no proven income. You’ve just got to look for the right places online, and they’ll help you out.
Our phones have become gateways to an alternate financial ecosystem. We’re able to obtain financing for nearly anything we’d like to own. Simply looking for it on our phones is enough to make it happen.
How Technology Has Changed the Financial Landscape
Technology has been changing faster and faster it seems. We’ve gotten to a point where we could do everything on our own. If you’re trying to buy a car, you don’t even have to go to a dealership. You can obtain financing on your phone. Then, you can even look for a car online. Every step of the deal can be done without leaving your house. They’ll even ship the car to your doorstep.