The Future of Lending and Borrowing Money

The Future of Lending and Borrowing Money

The future is here today, now, not tomorrow as some would have you to believe.

Technology is rapidly expanding and growing at an exponential rate, need proof, just look around, anywhere around.

And what better place to start then right in your hand, your mobile phone.

These little beauties can play music, videos, send messages, take photos, and even place phone calls. There are applications for just about anything and everything you can load on your mobile phone.

Then to expand on that, many of us do our banking using mobile applications, or even make payments for purchases using mobile apps and mobile banking.

There are not just mobile banking apps, but apps that can track our spending, and help us to save money.

You can order and track a taxi using an app, and even make payment, all without getting your hands dirty with sordid cash.

Next up, the Internet.

Look at how the Internet has changed our lives, and not just for shopping, but also to research topics, read about what’s going on in the world. Everything is on the Internet, and with our handy dandy mobile phones we can get on the Internet almost anywhere.

The Internet has also dictated some changes in our lives, again outside of shopping, which more and more of us are doing the bulk of our shopping online, but we also need that connectivity. Which means we need WiFi.

For some of us our choice of where we may decide to eat, drink, and go is determined by if there is WiFi there or not.

Years ago not many hotels or restaurants offered Internet, today almost all do. They have to as the public have spoken and with those words they said, “we want WiFi”.

Just between the Internet and our mobile phones our worlds have changed.

So what is next?

Digital assistants, the Google Home’s and Alexa’s of the present, are soon to be a larger part of the future.

If you use one of these “assistants” it may be to play music, check the weather, as an alarm, to phone friends and family, even have video calls.

However, these little marvels are now getting ready to be used for much, much more.

HMRC and Alexa

HMRC has worked with Amazon/Alexa to help people get answers to tax questions, and renew their ta credits.

HMRC’s Director General for Customer Services, Angela MacDonald has stated, We know our customers have hectic lives – full of interruptions and distractions – which is why HMRC’s online services are available at all times of the day and night.”

As the 31 July deadline for tax credits renewals approaches, customers can feel reassured that they can renew their benefits online or via the HMRC App at a time that suits them. And if they need to access help and support, Alexa can help customers find out about what to do when they receive a renewal pack, how to change their circumstances, or how to find out about payment information.”

We’ve improved our services so customers can renew their tax credits at a time that’s convenient for them.”

Banking and Loans

You can also now use a digital assistant to help you find a loan, and even do your banking.

Just say, Alexa, find me a mortgage, and after answering a few questions, the device will search the Internet sifting through thousands of mortgages to find one just for you.

The Chief Executive of UKMortgages, Mark Lofthouse stated, “A mortgage remains one of the single most important financial decisions many of us will make, and with the number of mortgages available, varying rates, payment options and set-up fees, making the right decision can quickly become very confusing.”

“This groundbreaking Amazon Echo Mortgage Skill gives potential home buyers the opportunity to carry out the initial mortgage search and enquiry process at a time that suits them best, and then make contact with a local mortgage adviser to take the enquiry further.”

And why stop at mortgages, why not car loans, guarantor loans, any type of loan could be searched and found for you.

Next up, banking, being able to check your bank balance, pay bills, transfer money, etc, all by using a digital assistant. And that is about to happen as NatWest is trailing this with Google Home.

Yes, there are security concerns, but account holders would be given a different PIN for this service, and would need to say out loud two (2) of the four (4) numbers.

Kaspersky, an anti-virus software firm’s David Emm said, “If people are able to carry out banking transactions using a smart speaker, it not only raises the issue of someone recording your voice and spoofing a transaction, but also the risk that recordings stored by the vendor of the device could be stolen by cybercriminals.

If every transaction requires a pin from the customer, to verify their identity, it rather negates the convenience of banking in this way.”

The Head of Open Experience at NatWest, Kristen Bennie stated, “We are exploring voice banking for the first time and think it could mark the beginning of a major change to how customers manage their finances in the same way mobile banking made a huge impact.”

For now NatWest is doing a three (3) month trial with 500 customers.

This may just be the start of how we will borrow money and get loans in the future.

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<strong>What is Our Criteria For Applying?</strong> 
Every lender on our website has their own specific criteria by the basics are mentioned below and you must have a guarantor to be eligible. Simply select the lender of your choice and you will be taken directly to their website where you can apply. You will be required to submit your details including:<li style=”text-align: center;” data-mce-style=”text-align: center;”>Name (must be over 18 as the borrow, 21 or 25 as the guarantor)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Residence (your chances will improve if your guarantor is a homeowner)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Employment status (must be employed or on a pension)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Income (earning at least £600 per month and able to make repayments)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Monthly expenses (not have too many loans open or in major debt)</li>
You will then be asked to include the details of your guarantor and as mentioned above, this is usually someone who you know and trust and wants to help you with your personal finances. Ideally, a guarantor with good credit will maximise your chances of being approved based on the idea of ‘if someone with good credit trusts you, well we can too.'<strong>How Much Can I Borrow From Guarantor Loans?</strong>Guarantor Loans gives applicants the chance to borrow £500 to £15,000 depending on the lender. Some lenders we feature like Buddy Loans only have a maximum loan value of £7,500 and TFS Loans is the only lender that stretches up to £15,000.Factors that can influence the amount you can borrow revolve around having a good guarantor. One that is a homeowner, with solid employment, income and good credit rating will maximise your chances of borrowing the largest drawdown possible.The lenders featured on Guarantor Loans see a homeowner as someone who has already gone through the rigorous process of credit checking and affordability and if they can afford a house, they should be able to act as a guarantor for you.By comparison, having a guarantor that is not a homeowner offers slightly less security and means that amount you can borrow is slightly less too.Higher amounts may be available to those who already have a better than average credit rating, are homeowners themselves and a repeat customer with the lender who has already paid their loan on time. To apply directly with your lender of choice see <a href=”” data-mce-href=””>direct lenders</a>.<strong>What Does The Guarantor Have To Do?</strong>Upon completing an application, the lender will typically send you a <a href=”” data-mce-href=””>pre-contract loan agreement</a> and SECCI (Standard European Consumer Credit Information form) which will highlight the terms of your loan. You and your guarantor will be required to review the terms of the loan, including the loan drawdown, fees, repayment dates and responsibilities – and this can be signed via an online verification process using your email and mobile phone.The lender will usually carry out an individual phone call with you and your guarantor to ensure that you both understand the responsibilities and what is required of you – notably that if you cannot make repayment, your guarantor will be required to pay on your behalf. Further to some additional credit and affordability checks, funds can typically be transferred within 24 to 48 hours (or sometimes on the same day).<strong>Are Guarantor Loans Available For Bad Credit Customers?</strong>Yes, even if you have a history of adverse credit, <a href=”” data-mce-href=””>CCJs</a>, bankruptcy or IVAs several years ago, you can still be eligible. The idea is that you are using your guarantor and their financial history to ‘back you up’ and give your loan extra security. However, it is noted that your guarantor should have a good credit score and consent to co-signing your loan agreement.<strong>How Soon Can I Receive Funds?</strong>Guarantor Loans works with lenders that can facilitate funds within 24 to 48 hours of approval, or sometimes on the same day.When your funds are successfully transferred, most lenders working with Guarantor Loans will send the full amount to the guarantor’s debit account first. This is a standard security measure carried out by lenders to ensure that the funds are going to the right person and confirms the involvement of the guarantor. The guarantor usually has a ‘two week cooling off period’ where they can decide to pass on the money to the main borrower or they can change their mind and return the funds with no extra charges.