Crowdfunding loans are gaining in popularity. As traditional techniques to attain credit is regularly becoming more difficult, technology has brought alternatives to the market.

Platforms such as Raise have been built with the vision of using crowdfunding to create financial equality globally. This is being made possible with the help of blockchain technology and the vast changes that occur daily within the fin-tech sector.

Forget the banks. The requirements for borrowers are becoming tougher and tougher as each day passes.

There are also millions of people who are unbanked or underbanked within the developing world.

Let’s take The Philippines for example. When Raise was envisioned by the team at Hero Token, they had researched that 99% of the 56 million Filipinos that use a mobile device have Facebook, yet over 70%of the whole population are either unbanked or underbanked.

These facts are crazy! That’s why they used their extensive experience within finance to create a solution with the uprising ability that blockchain technology has to offer.

Crowdfunding while leveraging blockchain technology allows businesses and people to raise the funds needed to provide a stronger future for themselves and the generations after them.

Goodbye to traditional ways of getting a loan

There are plenty of positives to Crowdfunding….

It’s a fast, easy and painless way for a borrower to find the money and the lender to offer their money. Matching lenders to the borrowers is a simple process and dependant on which platform they use. For example, Raise will be implementing a ‘Dutch auction’ which will create a swift, easy and hassle-free platform to match lenders and borrowers.

The lender has the ability to choose where their money goes. Every crowdfunding platform allows borrowers to use their website as a free marketing tool where they will ‘sell themselves’ with the hope that people will become invested in their ideology and why they need the money. Far more transparent than traditional ways of raising money.

Transparency and openness reduces the risks for the lender. Borrowers will make it very clear as to why they want to use the money and what it is for. Lenders have the chance to see everything up-front and choose whether they want to place their trust in that borrower. The risk is reduced radically.

The benefits for those that receive the money are truly life-changing. Using crowdfunding techniques in developing countries will realistically bring positive changes that could see global equality. The chance to distribute the funds to create a better local economy, better opportunities for education and increase the likelihood of better healthcare for all is not to be missed.

Goodbye to traditional lending. The future is crowdfunding. The opportunities are plenty and the risk is minimal. Be a part of our journey and sign up to Raise today.