Creative Credit Crunch

Sep 8, 2014 Blog  Personal Finance

We consumers are finally free. No longer forced to follow the traditional path of banking, we are now armed with the tools to creatively control our own credit.

Quite simply, we are now offered more financial options in this day and age than ever before. Whether its booking a taxi or financing your new car, the plethora of options we have now are astounding. Even the simple purchasing of a coffee has changed – we don’t need anything more than a phone and an app.

Future Today

While this may sound like some sort of mad revolution, it is in fact a way of life today. Historically there were very few ways to get a line of credit. You went to the bank, a well-off family member or, in extreme cases, a less than desirable individual such as a loan shark. Things, thankfully, have changed for the better.

Take buying a car for example. The old way was to either have the cash up front or get a loan from the bank. These kind of loans came with all sorts of red tape and paperwork, leaving you wondering what exactly you had just signed away. Now days you can simply walk into a car dealership and get on the spot financing. While you still need to pass the necessary credit checks, your financing is done all in-house.

Banking For The People

Credit is no longer the domain of the banks. It is in fact a value added service that is starting to become part of almost every aspect of our lives. “Banking” as we know it has become a technology driven utility that companies are harnessing for the our own gain. This change in financial landscape is typified by the advent of peer-to-peer lending.

The last two decades has seen the explosion of social media, and social awareness, on a global scale. We can connect with almost anyone in the world, helping them realise their financial dreams with the simple click of a button. Kickstarter is one such example. This community driven site helps people gain financial backing for everything from the latest invention to movie production. We are financing the each other in a bid to get what we want.

This isn’t a revolution. It’s now a reality.

In the personal financing department, peer-to-peer lending comparing Lending Club has blazed a trail on a global scale. Having financed more than $500 million in loans, the company plans to “go public” shortly. All this built off people financing each other.

A Strange New World

The world is looking at a totally new way of banking and South Africa is ready to join the lending club. RainFin, a totally new concept in peer-to-peer lending in South African, is looking to bring personal finance to each and every one of us. This community orientated platform looks to connect borrowers and lenders so that they can finance the each other’s future.

Not simply satisfied with being a place to conduct finance, RainFin aims to draw back the veil and show South Africans the intricacies of banking. This transparent and informative method is aimed at taking the control away from the antiquate system we have endured for years and giving us the power to make informed financial decisions.

RainFin aims to allow normal South Africans the chance to use their money is ways they didn’t think possible. Giving people the chance to leverage their own capital and use it to fund the needs of others. This community will not only allow banking at a more personal level, but ensure that both parties come out on top in the end.

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