The future of Millennial banking

From Marketing Interactive:

“Throughout the history of banking, financial institutions have been the centre of all transactions for consumers and businesses. Large institutions held control of the industry.In the last ten years, the fundamental assumption that financial institutions are the only avenue to financial transactions is being called to question, especially by Millennials, who are by far the most entrepreneurial generation. This creates opportunities for peer to peer (P2P) lending marketplaces such as Prosper and Lending Club, platforms which create alternative ways to access cash loans while providing alternative yields on deposits. ”

Newly introduced peer-to-peer lending platforms are now an alternative source of yielding higher return with controlled risk compared with traditional banking. The banking system is now changed to a new ways where multiple players (e.g. Fintech) are filling gaps from traditional banking. In Singapore, the SME invoice financing sector is now moved to alternative lending side with big players such as Capital Match which provides professional services in credit assessment and factoring.

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Bank web lending can be faster and cheaper

Post by Steve Cocheo in Banking Exchange:

“Clients increasingly want the same convenience from their local providers that they can obtain from such players. Kabbage, for example, promises up to $150,000 in business credit in ten minutes. The bank hasn’t been able to measure the local impact of marketplace lender competition, but clearly customers want an experience like that offered by such players.”

New Technologies are changing the traditional loan system, new ways of credit assessment and funding source make this process faster and cheaper. High-efficient technology advancement helps the loan in SME sector as well. In Singapore, Fintech player Capital Match is offering convenient invoice financing option for SMEs to ease their financing option with advanced credit assessment, at the same time protecting investors with higher return from managed risk.

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