Alternative investment platforms are getting popular specially in North America, Europe and Oceania. There are approximately 510 investment platforms around the world and 26 of them are in Estonia. One of them is Income:  With the platform and mobile app, loan inversions are enabled by a new use of technology and the incorporation of security features previously available only to institutional investors.

In Fintech Market we believe that the collaboration between such a specialized platform and our highly configurable system brings many benefits to lenders and investors. That’s why in this post we want to talk about our integration partner Income, and how lenders can take advantage of this by their platform through our Core System.

Before diving into the benefits of this partnership, let's explore more facts about these alternative investment platforms, how they work for people that want to invest and to lenders that want to use this type of source of additional capital.

What people are investing in?

The most popular investment categories are growth investing (130 companies), real estate debt (125 companies) and small business debt (99 companies), other categories are real estate equity, personal debt, loan originator debt, invoices and receivables, agriculture and farming and green energy. The Loan originator debt category has approximately 25 alternative platforms in the world and 7 are from Estonia.

Investing in a loan means that you are lending money to a company and under agreement they will pay you back within a certain amount of time and with a specific amount of interest. With alternative investment platforms you can even start with €10, but it always depends on each platform and their minimum investment rate.

Revolutionizing investing with innovative technology

Using Income's alternative investment solution via Fintech Market's Core System offers lenders a host of compelling advantages, chief among them being the ability to tap into an invaluable source of additional capital. One of the pivotal aspects of the lending business, and indeed any financial services institution, is the availability of free capital. This factor fundamentally determines the capacity of the company to extend loans and, more broadly, shapes the company's strategic approach to delivering its financial services.

These platforms provide lending companies with the opportunity to leverage private investors' capital, which can then be deployed for lending purposes. When these alternative investment platforms are seamlessly integrated with a loan management system, the benefits for lenders become clear and efficient. This synergy enables lenders to harness an alternative source of capital that can be employed to expand their lending operations.

With Fintech Market's Core System, lenders gain access to a comprehensive suite of tools that elevate their investment journey. Using Income platform investors can earn up to 15% annually, it has more than 6,000 approved investors, and 63,418,678€ invested in total. Income cooperates with Loan Originators globally like Hoovi and Danabijak, who are already using our Loan Management System.

Get to know some advantages of the Income integration on our software

Risk Mitigation and Data-Driven Decision-Making

One important concern that come to investors minds is the protection of their invested funds, but with the needed risk management tools in a loan management system the risks associated with lending are lower, and it allows the loan originator to assess borrower creditworthiness, track loan performance, and identify early warning signs of default.

It’s important to mention that with a solid loan management system, the loan originator can collect and analyze large volumes of data. This data-driven approach enables informed decisions about borrower selection, interest rates, and loan terms, leading to better investment outcomes.

Ease of Investment and automation of processes

The integration enhances the user experience by streamlining the investment process. Lenders can easily access available loan opportunities, set different investment offers, and monitor portfolio performance, all within a single, user-friendly platform.

Automation is key to improving efficiency, reducing time and effort in the processes, and helps reducing human errors, which is a big plus for lenders, since through the integrated system they can monitor how their processes are working.

Regulatory Compliance

A system with integrated risk management tools helps the loan originator comply with industry regulations and standards. This compliance, in turn, reduces the legal and regulatory risks that investors might otherwise face.

There are more ways investors can benefit from our platform on Income, if you want to know how, please follow this link to find it out: Empowering Investors Globally: How Income and Fintech Market Revolutionize Loan Investments

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About Fintech Market

Fintech Market (FTM) operates in the lending software market, providing a comprehensive SaaS-based loan management system for financial service institutions. The platform includes loans, deposits, current accounts, and investments, along with essential features like CRM, KYC, risk management, and debt management. FTM serves neobanks, SME loan providers, car leasing businesses, and buy-now-pay-later providers in the EU, Mexico, and Indonesia, offering tailored solutions to optimize their operations within the lending software market.