Every year the number of payday loans is growing, most often it is associated with a general growth in the credit market as a whole. People are increasingly beginning to trust Payday Loans, but they take loans more often from banks. In order for microloan companies to show decent competition to banks, they must “make friends” with new technologies and provide convenient and understandable online services to their customers.
Despite the constant growth in demand and no payday loans, there is a popular belief that all Payday Loans are fraudsters and work only to profit from inattentive borrowers. Such a view originated at the beginning of the microfinance market in our country. At that time there were no current laws and an active regulator of the financial market. Any organization could become an Payday Loan, and in the case of deception, people did not receive a decent punishment. In addition to this, most citizens were financially illiterate. But lately, people are increasingly turning to Payday Loans to take a microloan. The loan system is becoming more transparent, efficient and secure.
Payday loans in our country are less and less associated with “stalls” at the metro and acquire the image of companies with a full-fledged semi-automatic system. After all, the basic principle of any Payday Loan is to issue money faster and more conveniently than at a bank. This means that in order to remain on the market, it is necessary to use new technologies, which allows a competitor to properly assess a potential borrower, calculate the maximum loan amount and process a large amount of data. And in order for the client to want to return, you need to provide him with decent, convenient support throughout the entire duration of the contract.
The citizens of our country, in turn, have become more informed and picky. Unlike the situation of a decade ago, a person who was denied two or three banks will not be left without the necessary funding — he can turn to the IFIs, where he most likely will not be denied. Given the gradual increase in financial literacy of the population, borrowers are more responsible in their choice of organization and in the specific financial products offered. Hence fewer complaints about Payday Loans and an increase in confidence and demand for payday loans.
Payday Loan online
With the advent of the opportunity to take a loan remotely, the number of young borrowers has dramatically increased. Young people are accustomed to the Internet and gadgets, and quickly delves into various online services. They are attracted by a certain “playful” attitude towards the process of receiving and closing a loan. They like personal accounts, the visibility of the process, as well as the opportunity to get bonus points or get a rating of “active borrower.” Along with increasing trust in Payday Loans, trust in young citizens, as borrowers, increases. This is facilitated by various automatic systems for assessing solvency and special psychometrics.
Even older people who are used to paperwork and compulsory office visits are gradually moving to a new kind of relationship with creditors. They are more actively using the Internet and devices to access it, and, therefore, are more willing to trust what is displayed on their screen.
In our country, attitudes towards payday loans are noticeably changing. Today, among Payday Loan clients, one can see not only those who, for one reason or another, were denied a loan, but also people who had previously neglected loans and avoided them.