There is no way you have not heard of FinTech! This is one of those modern words, which people often use these days. However, FinTech is more than just a modern word. It is a whole industry of the New Era, which main purpose is to remove bureaucracy and to address the inflexibility of the traditional finance management.
How did we get here?
The Dot-com revolution and the smartphone era give us the possibility to be online all the time and to be able to do everything from our devices. It is not surprising that having all of that will make people get irritated of the slow model of the standard banking. We are talking about the new generation Y – the millennials. They just want every service to be accessible on the tip of their fingers.
Necessity makes people creative – this is exactly what happened this time as well. FinTech is the product of technology progress and pragmatism. It made the bank sector better by introducing online banking and wireless payments. They provided the business with a completely different way of gaining external capital (financing) – crowdfunding. FinTech changed the perception for money with the creation of the blockchain technologies and cryptocurrencies. The FinTech industry completely changed the models of investing in the last 10 years by introducing digital investing instruments.
The traditional methods of investing became accessible
Before the era of commercial Internet, the investing depended on intermediaries. People had to use the services of agents and brokerage houses, in order to be able to invest in the financial markets. Nowadays “the agent” is just an easy to use web application. It allows you to see how the price change without depending on someone else. The assets for trading did not change, and they still influenced by the same factors. The opened niche is now filled by the FinTech industry.
The innovation is here
FinTech not only get the people close to the financial markets but it also aims at new horizons. A great example for that is crowdfunding and more specifically P2P investing.
The P2P platforms are the bridge that connects the Non-bank financial institutions and the investors. The Creditors, a.k.a. Originators, can list part of every loan they offer in order to finance themselves for new loans. In return the investors gain profit from the interest, as well as the received fee payments (if any).
Why P2P can be your main instrument
Smart decisions are simple in nature – so simple that a person could say “How have I not thought of that before?”. This is P2P’s charm and the reason for it to become such a preferred method for investing. Millions of users worldwide choose to invest in it instead of the traditional possibilities (such as real estate and Stock Markets).
The P2P investments are a great way to make extra income out of your savings. They will not bring you huge profit in a few days, because it is a long-term instrument. Instead of that you will be able to easily predict the expected level of risk, as well as stable yield, while the credits you have invested in go through their payment cycle. The best is that P2P investing does not require a big amount of funds to start, unlike other long-term instruments such as bank deposits and real estate. With iuvo you can even start with 10 EUR, so you can get used to the platform, and when you have more available funds, you can always invest more.
If you want to learn more – take a look at our blog! You can find a lot articles with useful information, as we continue to post more.
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