The FinTech Movement (Research Paper Sample)

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The FinTech Movement
1 Definition and Concepts of FINTECH 
According to the World Economic Forum, FinTech is defined as the new entrants in the financial sector that intend to reshape how services are structured, provisioned, and consumed. 
Fin-Tech can also be described as a technical tool used to support financial services by making it easier for everyone to access it as a fundamental human right CITATION Tur17 \l 1033 (Turnkey Lender). 
Fin-Tech is linked to the term Financial Technology which refers to the development of a financial industry formed by companies that have adopted technology in making financial services more efficient. 
1 FINTECH as Digital Lending Platform 
The use of the FinTech lending platform has significantly increased over the years. The majority of the people with small-scale businesses could not access credit from the banks. The FinTech movements target the underserved borrowers who have challenges in accessing extra finances for their businesses (Vives). The digital lending platform is more convenient compared to the traditional channels of borrowing. The new-age of lending utilizes the concept of Artificial Intelligence and Machine learning techniques in the documentation of clients’ details. 
2 Traditional Bank loan vs. Digital Lending
Bank loans refer to financing products offered by the bank to business owners in need of additional funding. The qualifications of traditional banking were so demanding, and most of the people could not meet the threshold required. Digital lending is a platform provided to offer financial services to most people who do not meet the qualifications for traditional bank loans. Digital lending has gained popularity among most nations because of its attractive terms. 
3.1 Advantages of Digital Lending over Traditional Bank Loan
Most people prefer digital lending over traditional bank loans. One of the primary benefits of digital credit is online access to financial services. Digitalization provides the customers with an opportunity to do their registration online either through computers or their smartphones. The application is also made online, and the documents are uploaded for verification within minutes. The majority of the traditional banks process and approve loans within six to eight working days, thus cannot be relied upon during emergencies (Vives). 
Digital lending involves minimal paperwork compared to traditional bank loans. In the digital platforms, the creditworthiness of a client can be determined within minutes after they have filled in the necessary details. At the click of a button, the company, using their lending parameters, can evaluate the ability of the client to repay. Unlike traditional systems, applicants are not required to provide collateral for their loans. Digital lending is very flexible and convenient for customers. Rather than going to the physical bank buildings, the customer can apply for the loan at their suitable places. 
1 Cybersecurity
To Turnkey Lender, the financial service industry is very vulnerable to cybersecurity. In digital lending, the majority of the decisions are automated, and software systems dynamically manage data. A small glitch in the system would result in high risks for the company (Turnkey). Some of the cyber safety practices incorporated by digital lenders include having a solid foundation of the system. Through artificial intelligence, companies can detect fraudulent applications, preventing account take-overs, deploying a cloud-based platform for lending, and detecting cross-device use.
3 Top 5 digital Lending Platforms in the Philippines
The number of digital lending platforms has been increasing over the years. In the Philippines, the top five commonly used FinTech companies include; Home Credit PH, Tala, Cashalo, CashMart PH, and Lendr. The top online digital lending companies in the Philippines are considered to be the most reliable and have a significant number of users. 
1 Brief Company Profile
In this section, we shall have a close analysis of the Home Credit Corporation in the Philippines. The company was founded in 1997 as an international financial service provider to persons with little or no credit history (Home Credit). The company operates as a global finance company in 9 countries across the globe. The vision of the company is to provide its clients with a seamless flow of funds at their convenience. 
2 Number of Subscribers 
On 30th June 2019, the company had issued up to 211,154,090 loans, and the number of clients served was at 123.7 million. 
3 Application Procedures
A person to apply through the Home Credit platform must provide two IDs of which the government issues one and state their current address. The person must be a Filipino between the age of 18 to 68 years, either employed or self-employed. After registration, the applicant visits any shop that has partnered with the Home Credit FinTech and selects the goods they would like to purchase.
Thirdly, one of the company’s sales agents assists the client to purchase their items and approve the contract. After the approval, the client is expected to make a down payment as the company caters to the remaining balance, and the customer will repay the amount in monthly installments.  
4 Payment Scheme
The repayment scheme depends on the type of loan applied by the customers. The cons