Lend-Tech Lending Technology as Service
LendingTech is a term that refers to fintech startups that offer digital lending solutions to consumers and businesses, using innovative technologies and alternative data sources. Some differentiation aspects
1. Accessibility
LendingTech companies use online technologies to reach those without access to traditional banks, such as people in remote areas. For example, a villager lacking proper documentation can obtain credit at reasonable rates from LendingTech firms, which can use alternative data for assessment, rather than relying on distant banks or costly informal lenders.
2. Efficiency
Utilizes algorithms for faster credit assessment. For example, ZestMoney uses automated tools to approve loans in hours rather than days.
3. Customization
Offers tailored financial products to meet individual needs. For example, MoneyTap provides personalized repayment plans, that align with the borrower's financial situation.