Whenever the subject of Fintech crops up during a conversation, the first things that come to the minds of many are online payments and mobile wallets. However, Fintech is actually a very broad segment of the financial markets.

These days, the term Fintech can be linked to several segments of the financial services industry including insurance, credit, banking, trading and of course, payments. While most of these segments are quite straightforward in the way Fintech has influenced their development over the last few years, the credit market is still an unfamiliar territory.

However, this segment of the Fintech market is now gathering pace with several products launched to target specific markets. For instance, there are companies that now provide loans for only the unemployed people or those who have bad credit in general, and most of their services are offered online.  For instance, loans accessible from this company are expressly stated to be for people with bad credit, which also makes processing time quicker and hassle free since no fact checking is required.

However, it is also good to note that most platforms that provide such loans can only lend up to $1,000, which is why they fall under the category of payday loans.

Back in the years, payday loans were only offered via pawn shops, but due to the increase in online payments methods, entrepreneurs have moved to capitalize on this paradigm shift by extending their services to online platforms. This has, in turn, triggered the rise of several startups that target online lending for unemployed people and consumers with bad credit.

Over the last decade, the lending market has experienced a tremendous change. Startups like Prosper and Lending Club both of which started as peer-to-peer lending marketplaces have grown over the years after weathering several regulatory shocks.

These lending services have emerged as the most preferred choices for several borrowers seeking to receive quick solutions to their financial needs. And as Business.com puts it, these startups provide borrowers with faster lending options that entail “easier application experiences than possible through traditional financial institutions.”