It is being said that FinTech firms enjoy lower operating costs, and can more easily react to consumers’ individual needs as they have greater access to a range of information about them. For their part, established banks have networks across scale, an existing, loyal customer base, strong institutional trust and built-in regulatory compliance.
This showdown has intensified competition in the financial services market which is likely to mean greater choice for consumers.
FinTech can offer solutions that are efficient and effective at lower scale which will benefit small businesses and provide them with increased access to more diverse funding options. Innovative FinTech products can be better tailored to the needs of small businesses.
This all comes at a price. According to Bankrate: https://www.bankrate.com/loans/personal-loans/rates/ the highest interest rates charged are as follows:
| FinTech Company | Loan size offered | Interest Rate Range |
| Lending Club | Personal loans from $1,000 to $40,000 | 6.95 – 35.89% |
| Upstart | Personal loans $1,000 to $50,000 | 7.74 -29.99 % |
| Prosper | More than $10 billion loans funded through Prosper | 6.95 -35.99 % |
| Avant | Personal loans from $2,000 to $35,000 online. | 6.95 -35.99 % |
| LendingPoint | Personal loans from $2,000 to $25,000 | 15.49 -34.99 % |
Who can survive a 35% interest rate charge? Situation may lead to revolving loans and more indebtedness?
Source: Bankrate
