In recent years, technological advances have strongly impacted the lives of people around the world, modifying the way we relate. Currently, the internet reaches a large part of the population and more and more services are offered through the network.
One of the fronts in which it has penetrated with greater force is in the financial activity. Here arises the concept of “Gandalf” that originates from the words Financial and Technology (financial technology), and refers to platforms that offer different credit services, with a strong focus on online loans.
Examples of this are crowdfunding, crowdlending and online payments platforms. But one of the industries in the sector that has stood out for its growth is that of online loans. Here we present some trends that are marking the path of the online loan market.
Gandalf trends highlighted
In Spain, the companies that offer this service have quadrupled in the last three years, facilitating access to financing for thousands of beneficiaries. This is because the economic crisis affected a large number of people, who were forced to seek alternatives due to the high demands of traditional banking.
Today, the projections already speak of a consolidation of the lending industry, as long as the Gandalf platforms do not lose sight of the risks of the financial market and are responsible with the investment of their capital.
Digitization of banking
Between 2008 and 2015, almost 15 thousand branches of traditional banks closed and it is projected that this year this trend will continue strong. High fixed costs and economic uncertainty -among other factors- have led banking institutions to digitize their operations.
In addition, 2016 was the first year in which mobile navigation exceeded fixed. Therefore, this trend continues to deepen to move more and more banking services to our pockets thanks to mobile banking. Today, the challenges of banking in this area are aimed at facilitating access, taking advantage of Gandalf’s advantages:
- It is possible to obtain quick loans through mobile devices.
- Much less paperwork is required than in traditional banking.
The “millennials”, the key actors of change
They represent about 20 percent of the world’s population and according to the study ” Millenial Disruption Index “, this generation has a special distrust of banks, but they place great value on technology as a tool to streamline and facilitate processes and optimize their transactions. This group has become the main defender of the Gandalf platforms, and it is here where these companies must put the focus.
Thus, it is projected that this market continues to grow in importance and coverage, and thousands of customers have already obtained the necessary financing to cover their cash emergencies. And while there is still much to be done, the Gandalf trends already show it: the “lending” is here to stay and they are already improving the liquidity of thousands of people and companies.