FinTech is by far the most prominent financial service sectors in the 21st century. By year 2020 experts expect FinTech designs to reach fruition. The designs that could reach perfection are robo-advisor sites like LearnVest, digital wallets, mobile banking and many more. Furthermore, FinTech trends could impact small business lending as well. Within the coming months, Forbes magazine expects to see the following three FinTech trends that will impact small business lending:
- Artificial Intelligence – AI is causing a transformation in small business lending by improving credit assessment, financial product development, and loan decision-making.
- Convergence – While marketplace lending currently accounts a relatively small percentage of the small business loan transactions today, technological innovations are forging partnerships between banks and marketplace lenders that could never have been seen a few years ago. Convergence is on the uptick and this will continue into 2017.
- Serving The Underserved – Banks are being encouraged fund minority business owners and ventures in economically disadvantaged areas. Meanwhile, marketplace lenders are in the forefront of providing capital to entrepreneurs and communities where their small business financing needs are not being met. People of color have been shunned by banks in the past.