Technology has disrupted just about every industry imaginable, but maybe none more so than the finance industry. From the introduction of Bitcoin to fully virtual/non-traditional banks—people are rethinking the way they handle, spend and invest their money. And in doing so, they are giving long-standing financial institutions a run for their money.
But the finance world is in for yet another disruption thanks to the ever-growing popularity of new AI-savvy loan companies. Using complex algorithms (that look at more than just your credit score to determine eligibility) these 6 tech startups are solving problems traditional loan companies have failed to fix— leveling a once exclusive playing field.
As an entrepreneur, you know that getting funding for a small business is notoriously stressful, headache inducing task. This stress is due to entrepreneurs having to find a broker, fill out forms, and then wait around only to get turned down. Well, Fundera aims to change all that. How? First, Fundera takes all the mundane parts of lending and handles them for you. All you do is answer a few quick questions and they do all the rest.
They’ll then sit with you and to review your matches, then help you apply to lenders that are the best fit for your unique situation. This approach filters out the tedious parts, expediting the entire lending process. Fundera is bringing dependable change to the lending industry in a time when having someone in your corner is so desperately needed,
Prosper is a peer-to-peer lending company that allows borrowers and lenders to fulfill each other’s financial needs. Whether you need emergency funds or need funding for your small business, Prosper tailors each loan to your needs. With Prosper you get all the benefits of a modern lending company (affordable rates, good terms, and evaluation beyond your credit score), with the added benefit of being able to take advantage of lending opportunities from everyday people.
Another perk is that with Prosper, you have the chance to earn an average of 8% returns.
Like all the lending companies on this list, Upstart looks beyond your credit score to determine your eligibility. To achieve this, they use their expertly crafted algorithm, to determine the safety of a loan based on different factors such as education and work history. This is a complete upheaval of traditional credit bureaus that only look at a credit score to determine if repayment is likely.
That’s why Upstart and other modern loan companies are disrupting the lending world. They realize that there is so much more to a person’s fiscal responsibility than their credit score. With all these factors in mind, Upstart has created something that is better for everyone looking to get a head start on their financial future.
If you ever had to apply for a small business loan, you know how slow of a process it can be. Thankfully, for Kabbage, expediency is the name of the game. Their goal is to help small businesses save time with loan applications and apply in only a few minutes.
Additionally, they look at more than just credit to determine eligibility. They look at overall business performance to assess what level of loan a business qualifies for. Kabbage is so fast, that after applying, you could have access to a line of credit the next day.
Fiserv is a fintech developer that offers a whole range of financial products that make the process automated. This allows lenders and other finance companies to make the most out of their money situations. In an industry with fast money changing hands, having top of the line payment processing and billing software, is vital.
With over $20 billion in loans funded, SoFi is helping people across all walks of life achieve financial freedom. Matter of fact, that’s actually part of their vision. SoFi understands that people are more than the sum of their credit scores. So, they look at people from multiple angles to determine what they need and how it can be provided.
They even offer an educational platform where members can share information to make the lending process more understandable from a peer to peer standpoint.
You are more than the sum of your credit score and these six loan companies understand that. So, whatever your goals are, you no longer have to put them on the back burner.
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