LOAN REVOLUTION THROUGH NEW TECHNOLOGIES

SITEA Daria Maria , Lucian Blaga University of Sibiu

Abstract:
Digitalization is a phenomenon in an uninterrupted expansion, which becomes an indispensable element of people, but also of companies. Financial institutions are engaged in a renewal process, as a result of digitalization. Nonetheless, particular details of these radical changes should not be overlooked. Digitalization is not simply about introducing technologies. It also involves profound changes in the banking system, in the financial companies and, more than that, in the organizational culture of any single company. In the context of a constantly changing banking market, various financial technologies appear, while existing products and services cover extensive user needs. Though, there is the new method of having access to the money – with the help of social media and cloud computing, an entrepreneur can meet its crowd investors. The outcomes highlight that crowdfunding and peer-topeer lending help those customers that are unable to take out a bank loan. However, banks are also launching the online lending option, which translates into less bureaucracy and increased competitiveness.

Keywords: Loan, Crowdfunding, Peer-to-Peer Lending, Financial Technology, Banking System

JEL Classification: G20, O10

Volume: 72, Issue: 2

Pages: 75 - 87

Publication date: July, 2020

Download the article: http://economice.ulbsibiu.ro/revista.economica/archive/72208sitea.pdf

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