A simple study was carried out using the QE search engine. In the course of which it turned out that people request payday loan almost twice as often as simple microloans. Also, the number of requests for “payday loan” increased one and a half times this year compared to the same period of 2018.
So in the first month of last year, a little more than 310 thousand requests were recorded, and this January already more than 460 thousand. This figure continues to grow and in February exceeded 530 thousand. The phrase “microloans” was introduced in QE in February a little less than 330 thousand times. This is despite the fact that in this case, the users of the search engine could have in view of microloans online.
Do payday loans crowd out simple microloans?
Many financiers believe that in the future the traditional form of microloans may disappear completely. People will only take payday loans. Initially, all payday loans positioned their services more convenient and faster to obtain. Today, few people are surprised that you can get money on the same day. Now the consumer wants to speed up and simplify for himself the appeal. Especially when it comes to the younger generation. Young people do not want to call and especially come to the office when you can get a loan, not looking up from the screen of a mobile phone. And the money will come to the card.
Payday Loans in the Internet?
One of the latest requirements of the GB Bank for microfinance companies is that each payday loan must have a website on the Internet. Drawing attention to how new technologies are expanding in the banking sector, it is not surprising if issuing payday loan specifically will be another demand of the ET Bank. Therefore, most likely, those companies that are already actively practicing this way of working with clients will increasingly become established in the microfinance market. And traditional payday loans will have to restructure their business model and fight for new clients.
Some analysts say the growth of payday loan by 2-3 times by the end of this year. This is facilitated by many factors of the microfinance market and the economy as a whole. More and more, consumers use electronic money and money transfers. People do not see some of their money in the form of banknotes. In addition, the Internet is penetrating deeper into remote settlements. Also increases the frequency of use of mobile devices. To this are added services for remote identification of borrowers. Such as fingerprint and retina.