The speed with which mortgage loans can be accessed now is a problem for traditional mortgage lenders (banks included). The process of getting mortgage loans from the traditional loan facilities has been a semi-automated system, but with Fintech companies, the process is entirely automated.
Does this automation come with any noticeable benefits? The answer is yes. The title of the article is not just a wish or a speculation, but one that has been researched. A research was carried out to find out how easily mortgage loans could be accessed and it was found out that Fintech companies provide mortgage loans faster than the traditional mortgage facilities. In fact, the loans from the Fintech companies were a whopping 7.9 days faster than the other mortgage facilities.
How about default rates? The Fintech companies experienced 35% fewer defaults on loan payments than their counterparts. So while some persons may write off the speed of accessing loans from Fintech companies, suggesting that the borrowers are not properly scrutinized, the low rate of defaults will negate this claim. Fintech loans are faster and default rates are lower.
Some persons attribute these two advantages to the flexibility of the automated process. The process can quickly reflect the current interest rates. This flexibility of operation has led to Fintech costumers paying 2.3% less than those customers who patronize the conventional mortgage outfits.
All these positives have buoyed the Fintech industry with its market share growing from over $30 billion in 2010 to over $900 billion in 2016. The future favors the Fintech companies.
