Innovation has caught up with the rigid and highly lucrative business models used by bankers and insurance companies worldwide for decades. Today these financial models are being challenged by a vast diversity of what is known as “fintech” innovations coming from all sides of the ballpark including, but not limited to, crowdfunding, peer-to-peer lending, mobile payments, bitcoin, robo-advisers and more which offer a wide range of possibilities to consumers seeking credit card relief. .

However, the adoption of new financial technologies doesn’t necessarily mean that the business models of the financial industry will be disrupted, only that more options are available with which to create business transactions using new technologies. In the past, the financial institutions and their financial services have been unscathed by the evolution of technological innovations as was the case during the 90s with direct banks and digicash which never got off the ground. In part, this trend is due to the regulatory nature of traditional finance. Today, there are many options available to consumers looking for lower rates and debt relief.

The latest report published by the World Economic Forum may hold the key to the transformation of the financing industry after interviewing dozens of financial strategists and industry experts from international organizations who discussed the future of the financial sector with top fintech innovators. The results of this research suggest that the bigwigs of financial services might restructure their models and are looking into new ways of rethinking the fundamentals.

The following fintech effects may be the new game-changers in the financial sector:

1. Launching specialized products and services

In the past, innovators focused on replicating the entire banking system. However, these models could only be adopted by consumers who were high-flying new tech adopters or those high-efficiency conscious. This scenario has changed in recent times to allow customers’ needs and industry profitability to meet at a cross section where consumers from multiple devices can access the best and most valuable industry products by consumers from multiple devices. One perfect example of this shows how money transfers can be made across any boundaries in a matter of minutes, where it used to take several days and very high fees. The UK company Tansferwise, which has reached the US market as well, is an industry leader introducing an innovative network between banks that allows transfers to become more readily accessible and at a lower cost to consumers. Transferwise oversees the remittance of more than $600 million each month. In the US, the company Zelle is an example of a money remittance business model by which money transfers within the US can be made from any place using email accounts as its security exchange base through an app.

2. The automation process of commodities

Technical progress has made it possible to automate manual processes that have traditionally been very cost intensive and only available to industry magnate. New customer groups now have access to services once reserved for just a few. The automation of wealth management services has made this possible with robo-advisers for such companies as Wealthfront and Nutmeg who offer investment advice and strategies to reduce taxes through an online portal accessible to anyone who registers with the site. The outcome of this innovation has made it possible for the younger and less wealthy consumer to be informed and acquire knowledge about investment and tax minimization that was once only for the elite consumer with high stakes. Everyday regular consumers can receive the advice and support they need for credit relief and therefore increase their savings and credit efforts to an upper stratum eventually becoming eligible to enter the high-rollers’ game.

3. Big data strategies

Bankers and insurers make decisions based on consumers’ credit scores, driving records, and health conditions before lending money or opening a policy. However, mobile devices are now able to stream real-time data making it possible to access new data to support financial decision-making. For instance, the creditworthiness of a customer is now also based on the social media analyses made by companies like Friendly Score, which provide additional data about businesses and individuals. If a business receives much traffic, or visits to its website, likes on its FB page or has many great reviews, this is an indication that the company is well respected and perceived in the community and industry where it operates. This information may influence the decision-making process of lenders for customers seeking credit relief as they are deemed a lower risk by their outstanding social media presence.

To offer customers better prices and help policyholders make sound decisions, Oscar, a new type of health insurance provider offers its clients a free fitness tracker that rewards them for choosing a lower risk management lifestyle by choosing the treadmill over the couch with monetary incentives in the form of rebates for premium payments.

4. Low-capital-platform-based

By connecting buyers and sellers over a digital platform, companies like Uber and Airbnb have made exponential capital growth while their initial startup costs have been simply flat. Noticing this capital-efficient business model, financial innovators and top US marketplace lenders like the Lending Club and Prosper, have seen their consumer credit and loans originations more than double in the past two to three years. Impressively, the Lending Club alone issued $3.5 billion in loans in 2013, making it the fastest growing consumer lending platform in the marketplace. An estimated $1 trillion in consumer credit relief will be issued globally by 2015 according to Foundation Capital Analysts. What is more outstanding is that these companies have not put forth any of their capital to achieve this exponential growth. Their service provides a setting where lenders and consumers in search of better rates for credit relief meet with a wide range of financial institutions such as hedge funds looking to make investments.

A similar landscape is seen in the crowdfunding platforms that have topped the digital marketplace of possibilities for businesses looking for seed capital. In these platforms an array of investors and start-ups looking to match their goals allow the crowd to help them make the funding decisions that will, in turn, give investors a piece of the pie.

5. Collaboration between the old and new

Innovators are usually perceived as disruptors of an industry instead of complementary of it. However, this is not the case with fintech innovations. Fintech investors are seeing how they can compete with industry leaders in specific areas using different strategies while being backed up by the scale and infrastructure of traditional financial institutions. On their part, conventional financial institutions realize the advantage of collaborating with new technologies in their industry. New developments and research offer a broader perspective on how the two can work together for a better customer service experience and lower risks. An example of this synergistic relationship is ApplePay which became a top fintech innovation in recent times working with Visa and MasterCard through a payment network. Likewise, regional banks are joining forces with marketplace lenders to meet their customers’ needs when they can’t provide loans for them, and thus, lower the risk of losing customers to other financial institutions.

While fintech innovators are more than just industry disruptors, only time will tell how they will force the traditional banking and financial services industry to change. As a result, consumers will be the ones to benefit as their needs are met at a higher pace and their knowledge base and accessibility of services increases. However, the brand names we are accustomed to won’t necessarily disappear, especially when they embrace change and learn to collaborate with the intruders.

Personal loans are beneficial, especially when you encounter an emergency. You do not have to worry about where to get enough funds to support your needs because there are several licensed money lenders in Singapore you can approach. However, qualifying for the loan may be challenging if you do not have the requirements.

Approach A Licensed Money Lender

Your qualification requirements for your loan may vary depending, on the type of lender you approach. Look around for various moneylender in Singapore and check out their requirements. From the very beginning, you can already determine whether you think you qualify for the loan. Here are some common personal conditions you should prepare for:

• A government issued ID such as your passport or driver’s license;
• Recent pay slip;
• Latest Income Tax Return;
• Utility Bills; and
• Credit Card Statements

These documents are pretty accessible for anyone who wants to apply for the loan, primarily when you are employed. Moreover, the records are essential for any moneylender in determining your identity and ability to pay.

Prepare Your Financial Statements and Credit Card Scores

Some personal loans do not require you to give collateral, which should make borrowing money more accessible for anyone. But if there is one thing everyone should be prepared for instead, it is their financial and credit score ratings. These ratings are determinative in your ability to pay and serves as an indicator and basis for your lender’s.

As much as possible, you want to show your lenders that you have a good credit card score and your financial statements are looking great. Even if you are not planning on applying for a personal loan shortly, it still pays to be responsible and have proper credit. You can do this through the following examples:

• Never delay your credit card payment;
• Manage your expenses wisely;
• Do not borrow too much money from a moneylender in Singapore.

Deal with Your Existing Debts First

If you have any existing debt or even a long-standing debt, you want to make sure you settle those first. It is vital that you do this, or else it will appear like you have a bad credit score which leaves a significant dent in your capacity to apply for a loan. Regardless of whether you got your previous loan from a licensed money lender in Singapore, you want to make sure you start with a clean slate with your moneylender.

This step is crucial, especially if you have a bad credit score. There are many ways for you to deal with your existing debts, and here are some easy techniques which you can observe:

• Pay-off any current or long-standing deficit, by creating a strict payment schedule.
• Check with your moneylender if they can reduce the interest rate you have to pay;
• Negotiate whether they can extend the payment schedule so it would not be hard for you.

Make an Estimate of the Amount You Need to Loan

If you are lucky enough, you might be able to secure a big personal loan from your moneylender. But you want to make sure that you try applying for an amount which you need, because you may have to pay off the loan if you overestimate the amount. Before you contract the credit, identify the amount that you need and set a minimum and maximum limit.

One of the things you need to keep in mind when making a list is also your ability to pay. It isn’t just the responsibility of various money lender in Singapore to check your requirements because you also have to be aware of it.

• Determine whether you can pay the amount you set;
• Identify the necessity of contracting the loan;

Personal loans are easy to get, especially if you have all the requirements. But you should also remember that you also have the responsibility to check whether you think you qualify for the loan. As much as possible, you want to make sure you keep all your financial scores are excellent so you can increase the likelihood of your credit being approved.

You must have considered a life insurance policy as something that only provides support in the event of a financial crisis. But you may not have considered its potential in the form of a long-term investment. Life insurance yields a great shield of safety around your household members in the event of an unforeseen wage loss e.g. accidents causing disabilities or death. The consideration of income loss for the future helps in determining the amount of compensation although the true worth of a human life can’t be measured in terms of money.

Under circumstances when the policyholder gets disabled or passes away, the family members achieve a guaranteed sum of money termed as the “sum assured”. Even with a term insurance plan, the policyholder needs to think of what he’ll achieve from this type of investment in case nothing unfortunate happens. Will he be able to meet the other inevitable expenses like that of bearing the cost of his children’s education, a world trip with his loved ones, and the marriage of his children?

Types of maturity benefit plans:

Term Life policies- Term insurance is a financial plan that reimburses extra premiums to the policyholder when the policy terms end and the insured survives through this period.

Endowment policies- The benefits of insurance and investment are combined under these plans. The money doesn’t yield great returns as it’s invested in debt funds. However, the risks can be managed more easily. The sum assured is actually not that high.

Unit-Linked policies- Compared to traditional forms of life insurance, the risk is much higher with this type of unit-linked products. The policyholder needs to bear some other associated charges, but he gains exposure to equity and obtains a fair growth of his money as against a higher return. These plans even allow money to be withdrawn partially that can be utilized for coping with the financial challenges whenever they surface. Death benefits are provided when the policyholder passes away within the tenure, but the guaranteed returns are provided when he survives before the policy period.

Maturity Benefit from life policies

Upon maturity of a policy, the benefits can be claimed by the policyholder. The completion of the plan tenure entitles the policyholder to receive a variable amount for ULIPs and other products linked with the market performance alongside the principal amount. However, for achieving the variable benefit, the policy needs to be concluded according to the pre-set terms. For traditional products, the owner will be entitled to receive the fixed amount only. The benefits that provided on maturity usually comprise of the sum of premiums that have been met during the entire policy tenure and the other return benefits stated in the paperwork.

The maturity benefits yield a sum of money that increases each year but is restricted to the overall premiums paid. That’s one reason why these plans are considered to be both a coverage benefit as well as an investment option. The corpus exhibits a uniform increase and the entire amount is paid out at the end of the maturity term.

Not many people know but it’s true that you can buy rewards points without having to wait to earn them. This has been a somewhat hidden option all this time. You can actually top up your account by buying points for a redemption. And the best thing is that the cost of doing so is not as unreasonable as you might think it will be.
People can buy points by their Membership Rewards Linked Cards, and at $25 for 1000 points, they’re not as expensive as one might think they’d be. These points are still cheaper than buying from an airline. So in this article, we’ll discuss how you can buy rewards points and why you might want to do that.

Why Buying Rewards Points Makes Sense

The main reason to buy rewards points is to top up your account for a particular redemption. Membership Rewards points happen to a flexible currency. This means you can check how many points you have and how you wish to use them. If you’re short, then you can buy as many points as you want to use them for whatever purpose you intend to use them for.

Buying points to top up your account when you know there’s an airline seat that can be redeemed is another reason to buy rewards points. This way you can secure the seat earlier instead of waiting until you have earned the remaining points from your day to day spends. If let’s say you’re another 1000 points short, then it could take a very long time to earn that many points, and the airline seat that you’re after won’t obviously wait for you for that long.

Important Details When Buying Rewards Points

The process of buying rewards points can easily be conducted over the phone number given at the back of your frequent flyer credit card or charge card. With American Express, you have to buy points in chunks of 1000. There is no limit on the number of points that can be bought. For more details about buying points, you can visit Points Bank.

Whenever you buy Membership Rewards points you’ll have to transfer them or redeem them over to a partner program at the time of purchase. So it’s better if you buy these points with a specific purpose in your mind. Points can be purchased on request immediately, and the transfer of points is also initiated at the same time.

Another advantage of buying points is that if there is any bonus promotion running at the time when you buy points, then the points will be offered to you at the bonus promotion that is being given at that time. However, you won’t be able to earn more points on the purchase of your points.

Buying rewards points is actually very easy. All you have to do is just make an account with Points Bank and state how much points you would like to purchase and for what purpose. These orders usually take 72 hours before your purchased points can be seen in your account.

Your car is perhaps proof that you’re one step closer to your financial independence. However, sometimes you just can’t help but loaning your first car. Loans of course have their respective advantages and disadvantages, and they sometimes play a big role in determining just how your first purchase affects your overall financial situation. Before you decide to do that, however, always remember to have these considerations in mind when purchasing your first car.

Budget Counts

Chances are, you’re going to want a certain car immediately, especially when you get your loan approved. This is why sometimes we tend to immediately go for the dream car by the time we have the loan ready. Try to avoid this. Remember, you can’t take the car home if you can’t exactly pay for it.

● Let the rule of thumb be that you can’t spend more than 25-percent of your income for the cars you have at home. This amount should include everything about the car, including insurance and fuel.

● Try your best to calculate just how much your new car will be affecting your income. If it takes up more than 25-percent of your expenses, now might be a good time to re-assess the kind of car you want.

● Remember, if you have to suffer financially to get your car, then you’re doing the wrong thing. After all, you’re not supposed to suffer in the first place. Find a car with a budget you can adjust.

What Car, Finance Wise?

When we choose cars, we normally pay attention to the kinds of models we need or our preference based on family size. However, perhaps a more important consideration is just what kind of car do we need, based on the kind of finances we have? For instance:

● Certified Pre-Owned (CPO) cars are becoming the more go-to option nowadays thanks to a wide number of lease returns. This means cars more than three years of age are becoming on sale. Three years is actually not bad, considering car depreciation values. There are cheaper CPO cars as well, so make sure you take this into account as well.

● Used cars, however, tend to have a shorter warranty period and a higher interest rate. You also wouldn’t know the full history of the car in question. However, you may be getting your money’s worth, because it can be extremely cheaper than CPO cars.

● Leased cars are probably going to help you secure an upscale car for your budget. However, you don’t get to own the car immediately, and would instead have to pay for it with set terms. Be careful about these terms, though, as they also tend to have strict penalties.

● Brand new cars can be an option for you, though chances are you’d get a car with lesser features based on your budget. Getting this would also mean you have a lower interest rate and full warranty, though. Sometimes, dealerships even offer maintenance and assistance.

CPOs tend to be the go-to choice of a lot of people, since the vehicles that are marked CPO tend to be quite cheaper. Sometimes, these cars also have some duration of warranty left as well.

Narrow It Down Further

Chances are, you’re going to have a selection of cars you want based on the budget you have. You may want to write a shorter list, though, because you have to know by now that there are potentially more expenses that you should expect. You have to take into account maintenance options, fuel, and other expenses you would have with the car. With these in mind, you also have to:

● If your automaker has a website, try to visit it and compare the specs of your car with reviews from other websites. Take note of the features that matter most to you, so you can narrow down your list of prospective cars.

● Take note of what’s called the MSRP, or the manufacturer’s suggested retail prices and take note of invoice prices as well.

● You may want to check the local inventories of your dealership and find out which of these selected cars are in your local vicinity.

● Try to choose the cars that would at least be 5-percent less than the monthly budget you have. This 5-percent will more or less go for repairs, insurance, maintenance, and gasoline.

Be sure to print out or save images of the web pages with important information about the cars you like. Don’t just go to the dealership yet, though.

Ownership Costs Matter

With your short list at hand, try to create estimate costs for each of them and try to see if they fit your budget. There are websites such as Kelley Blue Book (kbb.com) or Edmunds (edmunds.com) that have ownership costs in the area, so you can at least narrow your choices down.

● If you want, you can also make a personal calculation for better accuracy. Assess the miles you drive per year, and try to obtain a quote on insurance on the cars you may want to buy. Give the insurance agents the model and make, trim level, and even the engine just to get an exact quote.

● You should also get to learn the invoice price, wholesale price, the MSR, and the asking price whenever applicable. Check third party websites for invoice prices, and while they may not be extremely accurate, try to negotiate for one that is close to what those websites indicate. This is of course, before applying any discounts.

● The next step be you researching all the possible discounts you can get. There are a ton of ads promoting cash-back deals, or discounts to military members, students, and even credit union members. These discounts can also be stacked alongside the cash-back rebates if your preferred model has them.

Secure The Financing Before Visiting Dealers

Remember that dealers want to coordinate your car loan because they also receive a commission on the loans they get to manage. This means you have to secure financing immediately from credit unions or banks in advance, just so you could compare their loans to what the dealership offers.

● A lot of credit people and unions tend to be open to people living in their communities, so this means you don’t necessarily have to be a part of a certain industry or company to join. Credit unions are good options because they tend to have rates that are a few percentage points lower than banks. You may click here for more information about credit people.

● You should also remember that dealerships don’t always offer good deals, no matter how attractive they are. Only about a fraction of car buyers even get to qualify for low-interest deals, which means your chances of getting in on it are low.

● Even if you do get to qualify for the rate, you may be better off with your credit union or bank. Always remember, if you feel like you’re stuck with your finances at this point, it’s not bad to get a consultation with an expert.

Conclusion

Purchasing your first car is an extremely big financial risk which has its advantages and disadvantages. Loans are always a good option if you can’t purchase your car for the full price, but always remember the considerations above before purchasing a car. Always consider the loan as part of your long-term financial plans. What about you? What do you think are other factors when purchasing a car for the first time?