A New Era in Financial Services

Traditional banking has been around for a very long time and the practices of the major financial institutions is not significantly different now from a hundred years ago. In this modern day, many individuals and businesses find it extremely difficult to be able to find, and afford the credit and financing that they need. Banks are extremely careful about who they lend to, and are keen not to make the same mistakes that led to the subprime mortgage crisis and subsequent financial collapse of 2008. Additionally they face ever increasing regulatory requirements, which is using an ever larger amount of their budgets, which squeezes their margins further, at the same time that the customer is searching for a better and more innovative service.

Challenges Facing the Banks

A key problem facing banks everywhere, is that most banks and financial institutions, simply aren’t making enough return on investment or return on equity that is demanded by the shareholders. At the same time, the customer is looking for a better level of service than that which the banks are currently providing, especially when it comes to technology. Traditional financial institutions are also facing increased competition from financial technology companies, known as FinTech, with some suggestions predicting such firms will take more than a quarter of the market within the next five years.

What is FinTech?

FinTech companies are normally startup firms who use software to provide financial services and are becoming increasingly popular. FinTech firms aim to compete with traditional financing, by delivering innovative financial solutions through the use of smartphones for mobile banking, and new financial offerings such as crypto currency. It is causing headaches for the banks, who are slow to adapt to the changes in the marketplace. It isn’t just the introduction of technology, but also for the banking culture and their traditional ways of operating. Blockchain and disruptive ledger technologies are offering the world of finance an opportunity to transform the way financial services firms do business. Banks who do not understand and adopt such technologies, face serious risks to their existing business models.

Alternative Financing Options

The financial services marketplace also has a newer and more innovative bunch of companies, such as Max Funding, who compete with the traditional firms by offering access to a range of swift and simple funding solutions, which are very popular with the small to medium business enterprise, who often have the most trouble securing finance from the banks, especially when the money is needed swiftly. If a sudden opportunity presents itself, the last thing a small business needs is for the opportunity to go begging because it was going to take weeks for a bank to approve a loan.

Banks tend to look at applications in a traditional way and do not offer the same level of innovation of some of their newer rivals. Every business is slightly different from the next one and has different financing requirements, which often don’t fit nicely into the brackets that the bank operates by. Hence, firms who can tailor make a financial product based upon a company’s specific needs, swiftly are also leading to a new era in financing.


Financing a Home That Needs Renovation

From minor improvements to general overhauls, there are many types of home repairs and many reasons why homeowners want to work. You can save electricity and reduce your utility bills; you may need to make room for a new addition to your family or you can increase the cost of your home. Even if you just want to update the look of your home, repairs can be expensive.

Regardless of whether you plan to finance the repairs yourself or have to take money, the financial advisor can review all your options and advise you how to better fund your repairs From now on, you will be ready to make a realistic plan and budget for your project. Ideally, your financial advisor will discuss a number of options, including your own resources, credit cards, personal loans, lines of credit, home equity loans and mortgage refinancing.

Personal resources

Regardless of whether you are carrying out small and low-cost reconstruction projects or if you have significant savings, you can think about financing your project with your own resources. However, you should speak with a financial advisor to make sure you have adequate funds, especially if you have no experience with home repair projects.

Financing of credit cards

Credit cards are a common source of funding for reconstruction projects, as they are available, and financing is immediately available. For small projects or small costs, credit cards may be an appropriate option, but you should be careful to consider your interest rate, since many large credit cards have annual rates greater than 17%.

Personal loans

Personal loans are entitled to regular payments at a fixed interest rate during a certain period. Alternatively, you can also be given the option of fixed or variable interest rates, depending on the size and duration of the loan. Private loans usually have lower interest rates than credit cards, so it is better to choose personal loans when they are planned properly.

Credit line

Another way to finance your repairs is a personal line of credit. Many owners prefer this option for long-term repairs, since they can access the funds at any time. In addition, regular payments and monthly reports help track repair costs. While lines of credit generally have lower interest rates than credit cards, they can be higher than personal loans.

Actions at home

This type of loan allows you to borrow against your own capital. These are usually economic loans with better interest rates, but they often require a lot of planning and adjustment costs. For example, before you can be approved for a participating loan, you will have to pay legal and evaluation fees.

Mortgage refinancing

Mortgage refinancing is only an appropriate option when major repairs are made. This type of financing allows you to distribute refunds for renewal throughout the life of your mortgage, and also allows you to access the lowest interest rates. However, once again there are initial costs, which may include legal and evaluation fees