With any comparison of banking and non-banking products, several differences can be very quickly realized. Until recently, they were quite successful in favor of the non-banking segment. These included, for example, the speed of handling the matter, minimal administrative processes, and a quick payout.
In addition, non-bank loans can be used at a relatively low level, which was a significant problem for the bank.
A small loan from your bank?
It is understandable that banking companies have clearly realized that in this respect they are losing the lead over non-banking provided and simply losing potential customers. Therefore, in recent weeks to months, there have been several changes in selected banks and their product offerings began to appear competitive loans.
What did the banking institutions come up with?
Many banks have also included small and short-term loans in their portfolios. These were the largest domain of the non-banking segment. Now you can borrow an amount of several thousand crowns and at the same time choose a shorter due date than one year. You can also go to the bank for a small loan. However, this is only a springboard. It should also be mentioned that banks are trying to beat non-banking providers at a lower interest rate, which is quite variable, even for smaller amounts.
Banks are no longer lagging behind in the rate of payout. Given that the approval is implemented in a relatively short time, then the immediate payment to the client’s account. So even this lack of banking companies quite successfully cover.
Accessibility via internet and mobile phone
Non-bank loans of any amount are popular due to their accessibility. From the comfort of your home, you fill out an online application and handle everything online. However, banks have such an advantage today. Yes, many companies have finally seen that you can ask for money from anywhere on the Internet.
Many banks now also offer their clients the possibility to apply for a short-term loan through mobile banking. And the truth is that it uses a lot of smartphone owners, so it is aimed at maximum comfort and easy accessibility.
Short-term bank loans
Now, in addition to words, there is also evidence that the above-described bank loans actually exist.
As you can correctly guess, such bank loans already fully replace loans before payday loans. So if you are hesitant in reaching out to non-bank providers, today you have the option of betting on bank guarantees and security. The question, of course, is how non-banking companies will react to such a move by banks, and whether they will come up with something more innovative to drag back the clients they have lost.