Category: Finance

The Impact of Technology on the Development of Online Lending

Financial technology has brought about a significant shift in online lending. Getting a loan became faster, easier, and safer. Now, you can borrow money through your phone or computer from the comfort of your home without coming to a physical bank. These changes ease the borrowers’ daily lives while helping banks and lending companies improve their services.  

For the consumers, loan automation translates into convenience and easy access to funds when needed. For lenders, it means loan automation, a rise of alternative lending options, and improvement of credit scoring algorithms, which also minimize the costs of digital loan processing. However, as online lending businesses gradually expand, they also change the dynamics of conventional banking systems.  

This article will examine how technology has impacted lending. Whether you’re interested in how AI is used in credit checks or developing secure data systems, we have the articles for you. Let’s find out how innovation in the borrowing process works.

Growth of Online Lending Platforms

Today, many online lending platforms have appeared recently due to the development of fintech lending and multiple digital financial services and tools. Today’s fintech companies have made borrowing money easy for people with any credit background. While most banks work under a rigorous bureaucratic system, alternative lending companies require less time and effort to access their products and services. They typically operate via apps and websites that make it fast and easy for them to sell. This way, they provide loans to those who can’t otherwise access quick financial support.  

Digital loan processing helped lending companies proceed the information faster. Now, lenders can offer loans to a larger number of borrowers in no time and avoid multiple risks. This makes it possible for almost everyone to apply for a loan: young people, older people, those living in small suburbia, or individuals with no credit history.

Gregory Allen, the CEO of ASAP Finance, says, “This is of great importance to the underbanked, who are always locked out of banking services. It is also good for small businesses in that, to get the funding they need, which large mainstream creditors would never provide them. They don’t have to meet all those strict criteria.”

Other experts in the field of finance argue that digital lending platforms mean the industry has gone liberal. Online lenders have set records in the financial industry, as Priya Malhotra, a Fintech analyst, said. It shows that they have more efficient ways of data processing, such as artificial intelligence, to evaluate borrowers’ creditworthiness, which makes it possible for those who have never taken any loans before to get funded.

How to Enhance the Customer Experience in Online Lending?

To improve customer satisfaction in online lending, the entire loan process has to be easy and personal. First of all, efficient application procedures are crucial. As you might have noticed, thanks to technology in lending, applying for a loan doesn’t take much time anymore. You don’t need to sit through hundreds of pages or provide your life history when filling out an online form – they are fast and easy.

Next up, there are personalized loan products. Have you ever wondered why loan offers look like they have been made just for you? It is the work of data analytics and reinforcement learning at its best. Lenders can offer you convenient loans by understanding your credit history and financial personality. No more cookie-cutter deals!

And that corresponds to what experts think. “The only way to earn trust is to offer personalized services as well as easy-to-use products,” says Grant Cardone, an entrepreneur and author of The 10X Rule. She noted that if lenders make it as easy as described here and demonstrate to their customers that they know them and their needs, they will be confident they can return. 

AI and Machine Learning in Risk Management and Credit Assessment

AI and machine learning are the leading technologies that can revolutionize risk management and credit assessment. They’re your super-intelligent assistants that help to sift through massive amounts of information to improve choices. Traditional credit scores? Yes, they are relevant, but AI digs deeper into them. They also use things like payment history, spending levels, or social media signals to determine an individual’s creditworthiness. AI in lending creates opportunities for people with an adverse credit history.

Fraud detection is one of the biggest advantages. Machine Learning helps identify suspicious features, such as weird patterns and shady transactions before a human can. It prevents creditors from potential losses and the debtor from fraudulent deals.

Experts have embraced it because of its disruptive effect on lending. It’s giving more people access to loans, especially those who are often overlooked by the traditional system. Through smarter tools, AI increases financial accessibility and contributes to creating new forms of lending, such as P2P lending, making loans easier to get for everyone.

Blockchain and Data Security in Online Lending

Thanks to blockchain, online lending has become more progressive. This tech makes transactions extremely transparent. There are no shocking extra fees that you would have to pay. Plus, direct interaction with the client reduces the time taken to process transactions. It simplifies things for you while the approval processes become faster.

When it comes to data, privacy reigns supreme, says Jim Cramer. Encryption secures users’ data by keeping it unavailable to potential intruders. With outsourced IT services and increasing emphasis on business digitalization, cyber security measures are regularly improving, and your data will remain secure even when the world becomes entirely virtual.

This combination is a favorite among cybersecurity experts. They say blockchain lending and encryption build a trustful atmosphere. Borrowers know the system is reliable, so they are not afraid to share their information. It’s a win-win; it reduces the risks shouldered by borrowers while making online lending less risky and, thus, more efficient for all parties.

RegTech and Compliance Innovations in Online Lending

RegTech is the financial technology that focuses on regulatory compliance and is indeed an opportunity for online lenders. It also makes it easy to follow the established financial regulations and requirements. Using technologies means that routine work, such as transaction monitoring and fraud checks, is handled automatically, reducing the workload, mistakes, and expenses. You can think of it as having your compliance expert or a virtual compliance officer.

RegTech is great for online lenders that want to reach international markets. Requirements and rules vary from country to country, and RegTech assists in managing that. It enables lenders to expand internationally without violating the law. Whether you go global or remain local, RegTech ensures that you stay in regulation and on your game.

Future Directions: Trends in Online Lending Technology

Online lending is still growing, and some new activities define the future. First of all, embedded finance is a great trend. This option allows customers to buy something and get a loan offer at checkout without visiting a bank. Thanks to this, alternative lending will be available where people need it due to embedding financial solutions into various apps.

Then, there is open banking, which is the safe sharing of financial information. With just one click, lenders can sneak a peek into your bank statement to provide loan offers tailored to your needs. It is as if each individual is getting a deal that fits them.

Experts believe this is just the beginning. They also expect even smarter technology, such as new credit scoring algorithms, which will include AI-qualifying loans beyond credit scores and thus make the borrowing process easier for more people. Presumably, plenty of other organizations, including financial institutions, will begin to feel the pressure and start losing business.

Bottom Line

Technology has caused digital transformation in finance and the lending business, especially online lending. It has become faster and safer and can now reach the individual level. In just a few clicks, you can look through the options, select the loans, and get approved to get the desired loan without standing up from the comfort of your couch. There will always be a continuous enhancement in how things are accomplished to increase efficiency and simplify things.  

Think about it: today, you have far more options than ever regarding where to go for your loan. Whether you would like to compare rates or have your terms explained, they are literally within your reach. Therefore, the next time you are in a position to borrow, take notice of these advancements. Cutting-edge lending is not just easy; it offers to make your choices efficient and more efficient. Borrowing into the future and borrowing better are already here.

 

Revolut reaches 50 million customer milestone

Revolut, the global financial technology company and licensed European bank, has today announced that it has hit 50 million customers globally.

The company has reached the 50 million milestone at high-speed, growing by over 10 million customers in 2024 so far and becoming the most downloaded financial app in Europe.  It follows a bumper year for Revolut, which in 2024 received a $45 billion valuation, was awarded a UK bank licence with restrictions from the Prudential Regulation Authority (PRA) whilst in the mobilisation stage, and announced its 2023 Group revenues had surpassed $2.2 billion with record profits before tax of $545 million.

Revolut has aggressive plans to continue to grow its customer base towards the 100 million milestone, while also rolling out new and innovative services to become the primary bank of choice for its customers. 

Nik Storonsky, CEO of Revolut, commented: “Revolut exists for one reason: to simplify money for everyone, everywhere. This year we’ve taken huge steps forwards — breaking records, accelerating the speed at which we’re launching products and continuing to disrupt financial services globally. We’re moving faster than ever because we know the opportunity to revolutionise global financial services for our customers is still massive.”

Later this week Storonsky will take to the stage at the company’s The Revolutionaries event in London to celebrate its 50 million milestone, speaking alongside co-founder and CTO Vlad Yatsenko and entrepreneur Steven Bartlett. 

An exclusive event featuring revolutionary names across music, business, fashion, sport, gaming, travel and entertainment, The Revolutionaries will close with a headline performance from the iconic Charli XCX ahead of her sold-out UK tour.

For those outside of the UK, the event will be broadcast across YouTube and other streaming platforms.

Revolut Bank UAB (Irish Branch) was recognised by financial comparison site Bonkers.ie as ‘Ireland’s Best Consumer Business’ and ‘provider of the Best Current Account’ in 2024, while the company ranked 9th as part of the Ireland RepTrak® 2024 study earlier this year.

 

 

 

 

Two thirds of businesses believe ‘legacy banks’ are too slow to adapt to modern business needs — Revolut

Revolut Business, the global financial superapp trusted by hundreds of thousands of businesses worldwide, has conducted a study in partnership with market research firm Dynata, highlighting that international businesses are turning away from ‘legacy banks’ to manage their financial needs, echoing the sweeping changes seen across consumer banking. The findings come as the company launches Revolut Business 5 — the fifth generation of its financial management platform for businesses.

The recent survey of 2,850 business decision-makers from seven European countries, including respondents from every county in Ireland, found that close to two thirds (63%) of businesses believe ‘legacy banks’ are too slow for their financial needs.

Nearly four out of five (79%) respondents reported issues with ‘legacy banks’, including high fees, slow transactions, and poor mobile experiences, and three out of five (64%) large businesses are worried they will be left behind competitors without enlisting a fintech.

These concerns are driving businesses to fintechs like Revolut, where innovation and agility are founding principles. Revolut is reinforcing its focus to support large enterprise clients with Revolut Business 5, which provides an enhanced user experience across both mobile and desktop platforms to meet the evolving needs of industry leaders. Revolut Business has been redesigned to save enterprises more time and money.

James Gibson, General Manager at Revolut Business, commented on the recent survey findings and emphasised Revolut Business’s capabilities: “When we started Revolut Business in 2017, we knew that businesses wanted a banking product that evolved with their needs and provided a customer experience you’d expect in this day and age. The demand for customer-orientated business accounts has only increased since then.

“As we launch Revolut Business 5, we know we’re giving customers the ability to find features faster, spend with precision, and manage payments easily. Revolut Business is continuing to grow, and look forward to welcoming more customers who are fed up with the existing status quo in Ireland and want a solution that moves with the technology of the day.”

In Ireland, specifically, the survey also found that:

  • 72% of business leaders believe that ‘legacy banks’ are too slow to adapt to modern business needs, notably much higher than the European sample size average of 64%.

  • More than half (52%) of businesses use the services of a fintech, while a further 30% are willing to trust and are actively looking to use a fintech to manage their finances.

  • A quarter (25%) of hospitality businesses and close to one in five retail businesses (19%) now no longer use a traditional bank in Ireland.

  • Looking outwardly, more than three-quarters of business leaders (77%) said they were seeing more industry peers turn to fintechs for their business banking needs, while 81% of these already use a fintech provider (such as Revolut) personally outside of work.

  • Notably, nearly a third (31%) of business leaders in Ireland would prefer to manage their business’ financial needs solely with their fintech provider.

Revolut Business 5 offers faster navigation, personalised layouts, and easy access to card details and analytics right from the home screen. Updated features notably include B2B SEPA Direct Debits, streamlined payment tools for online and in-person sales, dedicated treasury tools for currency exchange, and multi-layered approval options for managing team spending across departments.

Revolut Business is already contributing 15-25% of the company’s overall gross profit, with some of Revolut’s notable customers in Ireland including Aer Lingus, O’Neills, and DID Electrical. The company also recently announced that global annualised revenue for Revolut Business has surpassed $500M (€461m). This growth is a testament to the demand for Revolut Business, as more companies turn to digital banks for a faster, more flexible way to manage their financial needs.

For more information, please visit: www.revolut.com/business

Nine in ten CFOs in Ireland feel decisions about financial strategy are made without sufficient data or insight

An overwhelming majority (90%) of CFOs and finance leaders in Ireland feel that decisions about their organisation’s financial strategy are made without sufficient data or insight, according to a new CFO Mindset Report by AccountsIQ, an award-winning provider of cloud-native accounting software for mid-sized businesses.

The survey of 260 CFOs across Ireland and the UK highlights the increasing pressures facing finance leaders, with many reporting a growing sense of stress and instability as they navigate economic volatility, rising operational costs, and unpredictable revenue.

CFO challenges

The survey determined external factors currently facing CFOs and other senior finance professionals. In Ireland, the top threats to financial stability are technology and software disruptions (42%), market competition (38%), and economic downturn (38%). However, concerns about financial decline are markedly lower than in the UK (48%), where it ranked as the most pressing matter of contention.

When it comes to internal challenges, more than a third (34%) of CFOs in Ireland and the UK report technological limitations as the biggest threat to their organisation’s financial stability. In Ireland, other prominent issues include a lack of skilled talent (34%), being behind on targets (34%), reporting accuracy (30%), and the time spent on manual data input (30%).

Despite differences in contributing factors, internal and external pressures are making it increasingly difficult for finance leaders across Ireland and the UK to maintain control over their organisation’s financial future, significantly limiting the potential for long-term operational success in both countries.

Operating in survival mode

While 70% of CFOs in Ireland and 58% in the UK say their finance function is scaling up to meet business growth demands, 16% describe it as actively slowing down. More than a third (38%) of all respondents state that better financial technology and software would most help them regain control, underlining the urgent need for organisations to implement improved financial tools.

Darren Cran, CEO of AccountsIQ, commented: “The need for modern solutions is clear. CFOs are facing immense pressure to make strategic decisions in the dark, without the right data or technology to support them. It’s a problem across the board but is particularly prevalent in Ireland. The sheer scale of the challenges they’re up against – from volatility to rising costs – is forcing them to operate in survival mode rather than driving growth. This is where finance leaders urgently need better tools and insights – and the good news is, they are out there. These tools can build trust in the numbers and give CFOs the confidence to make informed decisions. It also empowers CFOs to shift from firefighting to forecasting, taking back control of their financial plans and driving sustainable business growth.”

You can download the full report here

More than a third of Irish consumers would put off saving to buy a house in favour of more immediate satisfaction

Research in conjunction with Revolut, the global financial app with more than 45 million customers worldwide, and over 2.8 million in Ireland, has found that more than a third (36%) of consumers in Ireland would put off saving to buy a house in favour of medium to short-term satisfaction.

Asked what big spending projects they would consider putting off in favour of instant gratification, consumers across Ireland also claimed that both their own wedding (17%) and having children (14%) could also fall by the wayside in favour of more immediate satisfaction.

The survey, conducted by market research company Dynata, asked a random sample of 1,000 consumers across Ireland, with the findings representative of people from every county.

These revelations come as 11% of Irish savers also pointed to low interest rates as the main challenge facing them when trying to put aside money. Meanwhile, just short of one in five Irish consumers (19%) claim inflation is stifling their savings.

12% of respondents believe they will never be able to consistently save enough to fund these kinds of big life projects, and therefore prefer to enjoy medium to short-term satisfaction.

Revolut launched its Instant Access Savings accounts in Ireland at the end of May, offering customers competitive interest rates across all its different plans, with interest paid out daily.

Maurice Murphy, General Manager at Revolut Bank UAB – Ireland Branch, said: “Every bank’s mission should be to give its customers the opportunity to build their own financial wealth. With Revolut, consumers all across Ireland can get a good return on their deposits to ensure that they don’t need to miss out on or put off those big life moments such as buying a home, having children, or getting married. Revolut savers on all of our plans benefit from really competitive interest paid out to them daily, as well as immediate access to their money.”

Revolut Bank UAB (Irish Branch) was recently recognised by financial comparison site Bonkers.ie as ‘Ireland’s Best Consumer Business’ and ‘provider of the Best Current Account’, while the company ranked 9th as part of the Ireland RepTrak® 2024 study earlier this year.

For more information, visit: www.revolut.com/en-IE

Renovation Nation: Home improvement projects drive consumer spending surge in Ireland

Revolut, the global financial app with more than 45 million customers worldwide, and over 2.8 million in Ireland, has identified a surge in the amount its customers across Ireland are spending on home improvements projects.

Revolut’s consumer spending analysis tracks millions of card payments each month to indicate several real-world spending trends by the country’s Revolut customers.

With Ireland’s national Residential Property Price Index (RPPI) increasing by more than 10% in the 12 months to August 2024, it could be that rising prices are pushing many across the country to renovate rather than relocate.

Rising prices driving renovation demand?

Whether getting onto the property ladder for the very first time or weighing up whether a move to a bigger home is within reach, it appears that priority number one for families across Ireland is renovating houses in accordance with their needs. Revolut’s analysis suggests that people are opting to renovate rather than relocate, either by extending or remodelling homes.

Headline figures included a 30% rise (QoQ increase) in payments to special trade contractors, with an additional 14% rise (QoQ increase) in masonry, stonework, and plastering costs, pointing to a probable jump in the number of house extensions getting underway last month.

Architects and tradespeople the beneficiaries

With an increased demand for work on home improvement projects, architectural firms and surveyors are proving the beneficiaries of people in Ireland’s need to renovate their homes. Spending on fees for these services rose 22% (QoQ increase) — up 18% on this time last year.

Busier carpentry contractors (33% QoQ increase) and heightened spending on plumbing and heating equipment (19% QoQ increase) suggests increasing workloads for these trades too.

Meanwhile, the amount spent at household appliance stores rose by 22% (QoQ increase), as consumers spent a third more (33% YoY increase) on furnishings for their homes in Ireland compared to last September — with a 22% increase in the last quarter (QoQ increase) reinforcing this trend.

Credit enabling home improvements

Revolut customers in Ireland looking to renovate their homes can avail of personal loans of up to €30,000 at competitive interest rates from 6.50% Annual Percentage Rate (APR) variable. Whether for home improvement projects, or something else, customers can spread the cost with flexible repayments. Over 20% of Revolut’s existing personal loan customers said their reason for accessing credit was to carry out home improvements, while in the last month, the amount of home improvement loan applications Revolut received rose by 4% (MoM increase).

A recent survey by market research company Dynata on behalf of Revolut found that over 18% of people (from a sample of 1,000 respondents representing every county in Ireland) said that renovating their house or apartment would be a good reason to use a loan in the next year.

Maurice Murphy, Head of Lending – Europe at Revolut Bank UAB, said: “During those big life events, such as moving or renovating your home, it’s important to be able to trust your bank, get a great return on your deposits, and have hassle-free access to credit when you need it. These spending patterns suggest that a growing number of our customers in Ireland are putting their money towards decorating, renovating, or extending their homes.”

Revolut Bank UAB (Irish Branch) was recently recognised by financial comparison site Bonkers.ie as ‘Ireland’s Best Consumer Business’ and ‘provider of the Best Current Account’, while the company ranked 9th as part of the Ireland RepTrak® 2024 study earlier this year.

For more information, visit: www.revolut.com/en-IE

Revolut enables Tap to Pay on iPhone for business and freelance customers in Ireland

Revolut, the global fintech with more than 45 million customers worldwide and over 2.8 million in Ireland, today announced that it has enabled Apple’s Tap to Pay on iPhone contactless payment acceptance technology for Revolut Pro and Revolut Business customers across Ireland.

With Tap to Pay on iPhone and the Revolut iOS app, designed for customers with a Pro account, such as sole proprietors or small business owners, or the Revolut Business iOS app for business of all sizes, Revolut customers will now be able to accept in-person, contactless payments with just an iPhone – no need for additional terminals or hardware. The feature provides an easy way for merchants to accept payments from contactless debit and credit cards, Apple Pay and other digital wallets that enable contactless transactions.

For payments to be accepted, customers simply need to hold their contactless card or payment device near the merchant’s iPhone until the transaction is complete, just as with a traditional contactless payment terminal. Apple’s Tap to Pay on iPhone technology uses the built-in features of iPhone to keep both business and customer data private and secure. 

Revolut Pro and Business customers can start using Tap to Pay on iPhone directly within the Revolut app or the Revolut Business app. New customers wishing to use Tap to Pay on iPhone can do so by downloading the Revolut app or the Revolut Business app on the Apple App Store using an iPhone XS or later running the latest iOS version. From there, they can sign up with a Revolut Pro or Revolut Business account directly within the app to start accepting contactless payments within minutes.*

James Gibson, GM of Revolut Business: “Since 2017, Revolut Business has been providing hundreds of thousands of business customers around the world with a comprehensive platform to manage business finances effectively. We are excited to be amongst the first to enable Tap to Pay on iPhone for our business customers in Ireland and to be providing this simple and secure solution that offers greater flexibility for accepting payments. We are continuously expanding the benefits of the Revolut Business platform, and this is another great tool to support customers to do business seamlessly.”

Alex Codina, GM of Merchant Acquiring at Revolut: “Our ambition in Merchant Acquiring is to provide customers with the products and services they need to accept payments in a secure and convenient manner. The launch of Tap to Pay on iPhone allows us to offer greater choice for both consumers and merchants in Ireland. We expect to see all kinds of businesses, from retail stores to barbershops and food stands, quickly start accepting in-person contactless payments with only an iPhone.” *Terms and Conditions apply.

Some contactless cards may not be accepted. The Contactless Symbol is a trademark owned by and used with permission of EMVCo, LLC. Tap to Pay on iPhone is not available in all markets.

Revolut launches Revolut Terminal, its new POS device

Revolut, the global fintech with more than 45 million customers worldwide and hundreds of thousands of business customers, has today announced the launch of Revolut Terminal in the UK and Ireland, with pre-orders beginning today in the UK and in the next month for Ireland. A new point of sale device optimised for speed, Revolut Terminal will allow businesses to accept payments in seconds and meet the growing demand for quick, reliable point-of-sale (POS) devices.

With its Terminal device, Revolut Business aims to deliver 99.9%+ platform uptime for uninterrupted sales even during the busiest periods. Integrated WiFi and SIM connections and a battery that lasts all day ensure the device is always ready to take payments on the spot when it matters most.

Available on exclusive pre-sale,* Revolut Business customers can access the Terminal at a cut price rate of €139 +VAT down from €189 +VAT and receive the device in time for the busy retail season; with Black Friday and Christmas on the horizon meaning merchants need a terminal they can rely on to take payments without downtime. While high demand for payments on Black Friday can occasionally cause digital outages for many providers, Revolut Business’ payment processing technology achieved 100% platform uptime on Black Friday last year.

The all-in-one solution offers Revolut Pay, a unique payment method where Revolut customers can pay directly from their Revolut app, earning RevPoints** — loyalty points accumulated from spending on Revolut — in the process at no cost to the merchant. When paying with Revolut Pay, customers can redeem their earned points for discounts on their spending. In turn, Revolut Pay transactions give merchants access to lower fees (0.5% + €0.02 for Revolut Pay transactions).***

Revolut Terminal integrates seamlessly with Revolut Business technology, aiding cash flow with funds accessible within 24 hours. It can be paired with our Point of Sale software to give merchants access to advanced analytics, table mapping, multi-location management and customer catalogues, streamlining the process of dealing with multiple service providers and making expense management easy. 

The launch follows the publication of Revolut Business’ annualised revenue surpassing $500M globally as the group commits to doubling down on its B2B offering and driving investment into product innovation to better serve business customers. 

Alex Codina, General Manager of Merchant Acquiring at Revolut, commented: “We’re excited to be offering Revolut Terminal as an all-in-one, powerful POS solution for our business customers. This launch comes as we continue to invest into our B2B offering and particularly double down on the hospitality and retail industries as an acquirer. A truly reliable payment solution is the difference between closing the sale and losing money – with Black Friday round the corner, Revolut Terminal is built to withstand high customer demand; and it could be yours in time for the busy season at an exclusive, reduced rate.”

James Gibson, General Manager of Revolut Business, commented: “We’re continuing to see lots of momentum in Revolut Business, having this summer surpassed $500M in annualised revenue and onboarding over 20,000 new customers per month. Revolut Terminal marks the latest investment in our business customers, with merchants of all sizes now able to easily accept payments directly into their Revolut Business accounts, without juggling multiple providers.”

Revolut Business customer, The Mulligan Room, added: “We started taking payments 10 minutes after setting up the Revolut Terminal, it was that easy! Now we benefit from lower costs with great rates and having a merchant and business account in one. The Terminal lets us process payments fast, has robust design and great features like custom tipping.”