Finance and Fintech are incredibly fast-growing industries and they change rapidly with technology and also with the challenges presented by the covid-19 pandemic. Whilst challenger banks and peer to peer lending might have seen huge growth in recent years, there are constantly new trends and fast-growing areas in the UK, US and beyond.
Business loans have played a vital role in the economy since covid hit almost 18 months ago. The use of bounce bank loans and other schemes has helped to save tens of thousands of businesses from potential financial issues and the millions of employees that they have. With the average business able to apply for £50,000 through Bounce Back Loans and up to £10 million through the Recovery Loan Scheme – this is a huge space which is supported by the main high street banks and challenger banks too.
Retail trading refers to individuals casually investing and trading in stocks, shares and cryptocurrencies during their leisure time. Through the help of apps and platforms such as eToro, IG and Robinhood, you have had everyday people learn how to play the stock market and invest in fast-growing businesses.
Whilst trading used to be left to the pros, this is now something that anyone can learn and do, although the potential risks and losses can be huge, so it must be treated with caution.
But people certainly benefit from working from home and the ability to check their phones or additional monitors without their managers or bosses looking over their shoulder, something that has fueled a huge industry even further during lockdown.
Secured lending and secured loans saw a huge boom following the easing of covid restrictions in early 2021.
For Lending Expert, a price comparison with a huge emphasis in secured lending and mortgages, the founder David Beard commented:
“We have seen a significant interest in secured loans in the last year and the providers that offer secured loans have had a very strong appetite to match the demand.”
“A lot of Britons have changed their perceptions about home living and now want to have extended homes, home offices and other leisure facilities such as home gyms and garden rooms – and this has contributed to more enquiries for second mortgages and loans for home improvement.”
“With a home improvement loan of £30,000, you could add a conservatory and garden office to your home, whilst increasing the value of your home at the same time.”
Salary finance is another area which is gaining a lot of momentum. Through the use of platforms such as Salary Finance, Hastee and Wagestream, people are able to withdraw money from their wages in real-time.
The products are designed to be alternatives to high cost loans or getting into credit card debt – and the premise is that if an individual needs money today, they can take it straight from their salary, even if it is only half way through the month, rather than waiting until payday.
This product is also offered as an employee benefit to staff and there are no fees for the individual to use it – only the organisation who pays a small transmission fee.