Most financial institutions do not usually work with small amounts, unless the citizen is already a customer of that institution. In addition, sometimes the process of applying for a loan is very complicated and requires guarantees that are not available (fixed income, for example). This is where financial technology comes in. According to Ethereum Code Review – Bitcoin System Review – Bitcoin Method Review – Bitcoin Circuit Review – Corona Millionaire Review, fintech can help stabilize monthly income. This is how they put it from Spain, through a statement they shared with Cointelegraph en Español, on May 20.
„At present, it is estimated that 4.8 million people in the United Kingdom, more than 162 million if we add Europe and the United States, work in what is known in English terms as the ‚gig economy‘, temporary workers, one of the sectors that is growing most, according to a specialized media in the startup ecosystem. Focusing on Spain, and according to a study made public by the European Commission in 2017, the Iberian country is the second, only surpassed by the United Kingdom, with more workers in digital platforms. This shows that 2 out of 10 Spaniards have ever worked for a digital platform as food delivery apps or to provide specific jobs and services,“ explained from ID Finance.
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„There is no doubt: the future in the labour sector will be one of freelancers, of self-employed workers, many of them temporary,“ they later remarked.
According to ID Finance, there are more and more freelancers working in different sectors of activity: consulting, banking, media, design. All of them with monthly income fluctuations and that in many occasions cannot face an unexpected event, an extra expense, even if it is not of a very high amount (for example, a car breakdown, a change of a household appliance, etc.).
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Most financial institutions do not usually work with small amounts, unless you are already a customer of that institution. In addition, the process of applying for a loan is sometimes very cumbersome. For a temporary worker, with irregular income and without a fixed salary, it is difficult, for example, to access a loan. However, fintech firms, using machine learning and advanced techniques in data science, are improving access to financial services for these workers.
Fintech and monthly income
„Technology is not only useful to deal with unforeseen expenditure but also to stabilize money fluctuations. By using algorithms and artificial intelligence, it is possible to know what a person’s current and future financing needs will be, allowing for responsible lending on the best possible terms. Thus, the client knows at all times how much he is going to pay, so that he can organize his income and expenses. No surprises. Without compromising their ability to pay,“ said from ID Finance
„This technology allows for the stabilization of monthly income, a kind of income smoothing. What does this consist of? Smoothing the fluctuations in income from one month to the next. If the income is irregular, a loan at a given time allows greater financial regularity to deal with unforeseen events. In short: greater stability in net income each month,“ they added.
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The Covid-19 crisis
The current Covid-19 crisis has complicated the situation of the world and domestic economy and many people have been left without an income.
Taking into account this scenario, ID Finance wants to show a certain level of commitment to society. That is why they announced that they are offering a first loan, of up to 300 euros, at 0% interest. „It’s a lifeline in these difficult times,“ they said.
Mini-loans can help in times of lack of liquidity. On this they commented: „This type of online loan is very useful to face unforeseen expenses of a punctual nature (…) Expenses that, in short, can put at risk the stability of our personal finances“.
Loans and transparency
Another thing they pointed out from ID Finance, is that they consider it essential that the information provided on the loans is totally transparent, so that customers know how much they have to pay and that there are no unexpected receipts.