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They argue that fintech companies can help stabilize monthly income

May 20, 2020

Most financial institutions do not normally work with small amounts unless the citizen is already a customer of this company. Sometimes too The process of applying for a loan is very complicated and requires guarantees that are not available (for example fixed income securities). That’s where Financial technology comes into play. According to ID Finance, fintech companies can help stabilize monthly income. This was communicated from Spain through a statement they shared with Cointelegraph in Spanish on May 20.

“An estimated 4.8 million people are currently working in the UK, more than 162 million if we add Europe and the United States, to the Anglo-Saxon term” Gig Economy “, agency workers, one of the sectors that is growing, according to a specialized medium in startup Most ecosystem The focus in Spain and according to a study published by the European Commission in 2017, the Iberian country is the second largest country after the United Kingdom with more workers on digital platforms. This shows that 2 out of 10 Spaniards have ever worked for a digital platform like food delivery apps or for the provision of certain jobs and services, ”said ID Finance.

“There is no doubt that the future in the labor sector will be the future of freelancers, the self-employed, many of whom are temporary,” they later said.

They argue that fintech companies can help stabilize monthly income
They argue that fintech companies can help stabilize monthly income

According to ID Finance, there are more and more freelancers, freelancers who work in different areas of activity: consulting, banking, media, design. All of them with monthly income fluctuations and which, on numerous occasions, are not associated with unforeseen additional costs, even if they are not very high (e.g. a breakdown in the car, a change in a household appliance, etc.).

Possible solutions

Most financial institutions do not usually work with small amounts unless you are already a customer of this company. Sometimes applying for a loan is also very cumbersome. For example, it is difficult for a temporary worker with irregular income and no fixed salary to access a loan. Fintech companies that use machine learning and advanced techniques in data science, however, improve their access to financial services.

Fintech and monthly income

“The technology is not only useful to deal with unforeseen costs, but also to stabilize fluctuations in money. With the help of algorithms and artificial intelligence, it is possible to know what a person’s current and future financing needs will be, which means that responsible credit can be granted under the best conditions. This means that the customer always knows how much he will pay so that he can organize his income and expenses. No surprises. Without jeopardizing their solvency, “said ID Finance

“”This technology stabilizes monthly income, a kind of income smoothing. Where is that? When smoothing income fluctuations from month to month. If income is irregular, a loan at a certain point in time enables greater financial regularity to be exposed to unforeseen events. In short, more stable net income every month, “they added.

The Covid 19 crisis

The current crisis of the Covid-19 has complicated the situation of the world and the domestic economy and many people have no income.

Taking this scenario into account, ID Finance wants to show a certain level of commitment to society. So they announced that they are offering a first loan of up to 300 euros at 0% interest. “It’s an oxygen balloon in these difficult times,” they said.

Mini-credits can help in times of illiquidity. They commented: “This type of online loan is very useful for dealing with unforeseen expenses on time (…) expenses that can ultimately jeopardize the stability of our personal finances.”

Loans and transparency

Another thing that ID Finances pointed out is the following They believe it is essential that the loan information is fully transparent so that customers know how much to pay and that there is no unexpected revenue.

It is important to contribute to the stability of your finances, and this is essential for someone who has an irregular income. In this context, they spoke of the company talking about a return to the idea of ​​”smoothing wages,” that is, knowing how much money will be available and how much will be spent to ease the management of financial concerns.

“Ultimately, these loans are a perfect fit for the needs of the customer and for the extraordinary situations they can come up with,” they concluded.

What is fintech?

Fintech is an industry made up of companies that compete with traditional financial markets. They use the implementation of new and innovative technologies in their work processes.

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