Everybody should have the right to plan their own financial future. Unfortunately, for well over a century, large financial institutions have completely monopolized certain asset classes, severely limiting how individuals invest their money. This is especially true in the lucrative world of real estate investing. But now, finally, that’s starting to change thanks to revolutionary fintech startups like PeerStreet.
Fintech has been one of the biggest buzzwords in the world of finance over the last few years. It’s short for financial technologies, and it’s exactly what it sounds like: new technologies that are either applied to or specifically designed for the financial services sector. While some of these new technologies are designed to work in harmony with the traditional financial services sector, others are designed to disrupt it by bringing in new players who were previously denied access to the game.
The best example of new technology being applied to and disrupting the financial services industry is crowdfunding. Originally developed to help small businesses on platforms like Kickstarter or Indiegogo, crowdfunding is now starting to change the way people invest and borrow money.
In the past, if you wanted to borrow a large sum of money to start a business or buy a house, your only option was to go to a bank and apply for a loan with a hefty interest rate. Thus, only banks had access to highly profitable debt investments. But of course banks are really just middlemen. All the money they loan out comes from the people who keep their money at the bank. And crowdfunding technology is democratizing the process by removing the middlemen.
Today, online peer-to-peer platforms are connecting borrowers with private investors by the thousand, creating an entirely new, mutually beneficial asset class in the process. And one of the fastest growing peer-to-peer investing services out there is PeerStreet.
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