Technology has modified the way in which we experience life, from our working hours to our leisure time. Innovations in technology and communications, such as the internet and mobile devices, have made our lives more straightforward. Modern platforms that have been facilitated through the accessibility of the internet and mobile devices have enabled consumers to take advantage of opportunities that would have been impossible without the inception of technology, and this especially applies within the finance industry.
Fin-tech makings things fairer
Traditional consumer finance has faced no real competition for decades, with banks owning a virtual monopoly on financial services throughout the UK. Banks previously had the freedom to overcharge or under-serve customers, uncontested for years until the introduction of financial technology (fin-tech). This modern method of banking is not bound by archaic systems like those operated by the banks and has emerged as an alternative system that levels the financial playing field.
For this reason, countless fresh financial companies are rapidly growing within this market, often significantly undercutting traditional banks. These primarily internet-based organisations are providing services usually offered by high street banks, but doing it a lot better. Therefore, we are seeing more and more alternative finance firms enter the online market and hit the ground running in providing a desired service with products that have been tailored to consumer demand. The online platforms operated by Peer-to-Peer lenders such as Wellesley & Co are emerging as a popular option both for investors seeking a higher than average rate of return on their funds and for borrowers seeking finance for development.
Fair competition not abolition
Alternative finance providers are not here to demolish traditional banks, just to make the playing field a lot fairer for the consumer and to offer more choice for customers to make their own decisions. Not only will the market offer more choices, but the introduction of consumer-focused companies will also prompt major banks to tackle the issues they have created.
Ultimately, they are all working towards the same goal and the traditional banking system will, of course, never die; however, it does need to adapt. The aim of fin-tech is to bring about this change and to reduce levels of friction and unfairness for consumers across the UK.
Wellesley is an asset-backed peer-to-peer lending platform, specalising in straightforward lending through our user-friendly platform. Our customers manage their investments online which sees them having 24/7/365 access to their account. If you would like a straightforward alternative to conventional high street banks which would see you earning up to 6.32% per annum on your funds, please call Wellesley on 0800 888 6001 or e-mail us at [email protected] – alternatively, we have an online chat facility displayed on our website which enables you to ask our Customer Service Team questions with an instant response.
*Peer-to-Peer lending is not covered by the Financial Services Compensation Scheme (FSCS). Investment through Wellesley & Co Limited involves lending to individuals or companies and therefore your capital is at risk and interest payments are not guaranteed if the borrower defaults.