FinTech Working With Banks to Get Money to the Underbanked   

Understand How Fintech Works | Jumpstart Magazine


The world is in the middle of an economic crisis triggered by the new coronavirus. FinTech is now working with banks to get money to the underbanked. If you need to learn more about this topic and find the best merchant cash advance for your business, just keep on reading this post.

Fighting COVID-19: Merchant Cash Advance

FinTech companies are working with banks to get money to the underbanked. By the way, in 2019, FinTech companies were responsible for nearly ½ of personal unsecured loans. Today, because of the pandemic crisis, worried investors are taking capital away from risky companies. The government wants to work only with stable financial institutions.

According to Treasury Secretary Steven Mnuchin, FinTech lenders will be authorized to make loans a historic first. Now, PayPal, Intuit, and Square have already gained approval to be involved in the U.S. Small Business Administration’s (SBA) Paycheck Protection Program (PPP).

Thankfully, government loans aren’t the only option to try if you need a coronavirus small business loan. You can turn to a trustworthy and experienced alternative online lender for quick, easy and hassle-free approval for business funding such as a merchant cash advance.

Economic Challenges & FinTech Companies

The global economy is largely on pause. Millions of people abruptly stopped working, and thousands of bank branches are shuttered. On the other hand, digital banking is gaining more and more traction among people all over the world.

In the U.S., the time spent in finance apps grew by 35% from the week of December 29 to March 15, 2020, according to a Liftoff representative. The patter is a leading mobile app optimization marketing and retargeting platform.

Google Pay is currently playing a leading role across the world: it’s grown in popularity, especially in Russia and in France. Tex is the leader in India. Cash App, Zelle, and Venmo are leaders in the U.S. PC Financial, Scotiabank, and Credit Karma are popular in Canada. China Individual Income Tax and J.D. Finance are leaders in China.

Kaitlin Asrow from the Federal Reserve Bank of San Francisco notes that now the top issue is the digital onboarding process of digitally authenticating an individual.

As you see, the world after the coronavirus is faced with major economic challenges. FinTech companies are seeking approval from the government to get money to the underbanked.

Author Bio: Michael Hollis is a Detroit native who now lives in Los Angeles. He is an account executive who has helped hundreds of business owners with their merchant cash advance solutions. He’s experimented with various occupations: computer programming, dog-training, scientificating… But his favorite job is the one he’s now doing full time — providing business funding for hard working business owners across the country.

Maria J. Danford

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