Speed highlighted as biggest advantage of fintech lenders

Speed highlighted as biggest advantage of fintech lenders

The time taken to access finance has been seen as the biggest advantage of using a fintech lender.

A poll conducted by Bridging & Commercial Distributor found that 43% of respondents chose speed as the biggest advantage of using a fintech lender, while flexibility was second with 29%. 

Accuracy and transparency came joint third with both receiving 14% of the overall vote. 

Fintech has become increasingly important to lenders as they look to improve the lending process for customers. 

Mobile and online challenger banks have continued to grow and are expected to see further growth following the recent Competitions and Markets Authority report on the competiveness of the retail banking market.

The British Bankers’ Association also reported that mobile banking app usage had grown by 57%, which coincides with the launch of a number of mobile banks such as Monzo. 

Just Cash Flow PLC puts a heavy emphasis on its fintech services, which it uses to provide fast, informed and seamless access to finance.

“Time-starved businesses tell us this is what they are looking for and I believe the technology should be invisible to them,” said John Davies, CEO of Just Cashflow. 

“It is also important to stress that it isn't a case of fintech or traditional. 

“Our experience shows us it is the combination of fintech and highly experienced/expert business underwriters that is a winning business model.”

Lucy Hodge, managing director of Vantage Finance, also felt that choosing a lender shouldn’t be about whether they market themselves as a fintech lender, a bank or a privately funded firm.

“Our job is to find the most appropriate deal for our client – that may come down to speed if there is a pressing need to get the deal done very quickly, but it may be more important to secure the best rate or a term that we know can be extended without incurring hefty charges should a development run over schedule for example.

“There are some fantastic fintech lenders out there and they provide much-needed competition in the market, putting pressure on other lenders to up their game and deliver great service and products. 

“Ultimately, though, we’re interested in whether we can rely on the lender to deliver the funds they agree and provide a consistent service for our clients.”

Earlier this year, lenders were warned that if they ignored fintech they would not be around to tell the tale. 

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