Fintech’s Impact On Personal Loans

Business economist Eldar Beyseitov said the number and amount of unsecured personal loans (often called personal loans) in US dollars has increased over the last few years for US consumers:

At the end of the first quarter of 2019, around 19.3 million consumers had at least one unpaid personal loan; 2 million more than 2017.

Unpaid loan balances at the end of the first quarter of 2019 reached $ 143 billion, more than $ 26 billion in 2017.

Fintech Lending Increase

The fintech lending growth is a key component of this growth, the author explained. “Since 2013, a significant increase in lending to individuals is due to loans from fintech companies,” he said. Beiseitov said that fintech now provides 38% of lenders' unsecured personal loans and 5% in 2013. 

Why are Fintech Loans Recognized?

A qualified consumer can usually access funds in less than a week, ”he said. He also stressed that the study stresses that fintech firms often offer interest rates lower than those of credit card companies. 1 “The merging of credit cards and other debts through online lenders to consumers,” writes Beiseitov. He also expressed concern about possible problems with the use of data from social networks by consumer lawyers.