Fintechs in crowdfunding have established more modern, algorithmically driven credit models (e.g. social media, psychologically driven models) and the ease of transacting has been designed with the client experience in mind, which attracts millennials who have increasingly stronger trust in online channels than traditional banking
Crowdfunding began as a direct competitor to banking but this has evolved into an additional channel for particular segments of clients. It was sometimes seen as an alternative funding source for clients with poor credit ratings. However, this is not entirely true since credit ratings are based on previous history i.e. some clients may not have had sufficient history to satisfy a bank internal credit rating model but not necessarily be a poor credit risk.
Crowdfunders have established much more modern, algorithmically driven credit models, e.g. social media, psychologically driven models. In addition, the ease of transacting has been designed with the client experience in mind, which attracts millennials who have increasingly stronger trust in online channels than traditional banking. Banks, on the other hand, have begun to recognise crowdfunding as another acquisition channel and have started to provide funding for these channels.
Here are some solutions from the Matchi platform that deal with crowdfunding:
- Crowdfunding Solution for Small and Middle sized Enterprises (equity based)
- Crowdfunding Platform
- Tracking the global crowdfunding / alternative finance market
- White Label Crowdfunding and Peer-to-Peer Lending Technology
- Makes regulated crowdfunding easy
- Customer engagement through omnisourcing
- Contact Terence Singh for specifics about any of the solutions mentioned above
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More on Matchi: Matchi is a global fintech innovation match-making firm, since 2013. Matchi has worked with over 100 leading banks and insurance companies (FIs) around the world, and has a database of over 2,500 fintech firms. Matchi provides both a highly curated portal of fintech solutions, as well as bespoke projects for FI clients to source targeted fintech solutions aimed at the FIs focus areas / pain points. The global Matchi team has run Innovation Challenges and Market Scans for multiple FIs around the world, in markets as diverse as Canada, Japan and India, as well as searches in other geographies.