Digital Media and Marketing Association (DMMA) performed in February 2013 a survey in South Africa. The result showed that 52% of persons survived made some purchases online in the past year. These figures will rise since internet connectivity keeps increasing. Many consumers are using the internet to do most of their shopping even to apply for loans.
Online banking is now common among internet users. This is evidence that consumers are now increasingly becoming trusting and confident regarding the internet’s use in order to satisfy their financial needs. Online lending is becoming fast a preferred way of obtaining a loan. To lend money online is not a new method but it is becoming popular lately with numerous lenders choosing to operate only online. Even though some may consider it as an unusual concept, this method comes with numerous benefits to both consumers and lenders.
Saving time is one of the main benefits that attract thousands and thousands of people to online lending. Thanks to this method, you do not have to leave the comfort of your home to apply for a loan. You can do it at your place no matter the weather and the time. Since today, speed is an important factor to many consumers and lenders, online lending meets this requirement perfectly.
Another reason showing that online lending will increase in the upcoming year is the human ego. For many consumers, applying for a loan is a proof of failure. Entering a bank or a lending firm and applying physically for a loan in front of other people show that you are not able to meet your needs and of your loved ones without help. Online lending saves you such embarrassment since this method guarantees anonymity. You can apply for a loan online without having a neighbour or acquaintance recognising you.
Online lending also benefits for providers because they can expand their business by reaching a huge number of customers regardless their location. A lender based in Nairobi can serve a borrower living in Florida. In addition, this method does not require a big number of employees and an office. A lending can work alone from his home and serving numerous consumers without needing a help. These benefit show that in the upcoming year, online lending will increase and even become the norm since location and time will not be issues anymore.