The last couple of years have seen an amazing transformation in the online personal loan industry. The global Fintech arena is constantly evolving. It employs new cutting-edge technology, including IoT (Internet of Things) AI, advanced data analysis and automation to transform many financial activities, including the once daunting process of attempting to secure personal loans.
Whereas approaching traditional lenders, including banks, for a loan was a long, tiresome, and, in many instances, frustrating process, the disruption that new digital platforms have brought to the market means that processing personal loans is considerably faster, more accurate, and results in better outcomes for consumers.
The new, alternative lending platform network offers borrowers express loans with customised repayment schedules, competitive interest rates, and more flexible terms.
The loan application approval procedures offered by traditional lenders are heavily influenced by salaries and credit ratings. But the AI-driven process used by new digital platforms does away with such bias with applicants now being assessed using big data and financial behaviour, putting less stress on outmoded demographic components such as race and gender.
One of the most important transformations is the introduction of loan tendering.
What is Loan Tendering?
If you’re searching for a personal loan, the last thing you should do is jump on the first offer that comes along. It might be tempting for some, especially for those who have a poor credit rating or have been refused loans in the past.
A lot of so-called comparison sites do nothing more than post a few advertisements from lenders. Okay, that is helpful to a degree, but it still means you having to approach each potential lender individually to find out what offer (if any) they are prepared to give you. It can be time-consuming and tedious.
Loan tendering sites take a different approach. Rather than simply portraying adverts from a number of lenders, they give you the option of completing a short application form without the need for complicated attachments. With the use of state-of-the-art AI and advanced algorithms, they then select up to 30 lenders (banks, finance companies, and alternative finance businesses to tender for your custom.
No more pleading for a loan. Loan proposals come to you, and you alone get to choose which one to accept. It’s really turned the loan application process on its head.
Alternative Finance Platforms Offer Automated Express or Instant Loans
Under the old traditional systems, securing a personal loan took days, often even weeks. But the digital Fintech revolution means that express loans can be approved and sent to your account in just minutes or hours at the most. It’s due to everything happening online thanks to automated systems that take care of nearly all aspects, well nearly all.
As mentioned above, the online loan application forms that the new digital alternative finance platforms use are easy and quick to complete. The AI-driven data search process happens immediately, and rather than using traditional credit scores only, it checks multiple data sources and thus makes better-informed, fairer decisions.
Short- or Long-Term Loans – Which Are Best?
The shorter the loan term, the better the interest rate. That’s the general principle normally applied. The better the interest rate and the shorter the term, the less a personal loan will cost you. But of course, shorter loan terms come with higher monthly repayments, which, if you’re not in a financial position to entertain, means you’ll have to opt for a longer term, which will inevitably cost you more.
Finland’s Consumer Credit Landscape
Finland is one of the best countries in Europe in terms of consumer rights and protection. If we look at the UK and the average interest credit card companies charge, the APR comes out at a whopping 35.5%. That is 5.09% higher than it was at the same time, one year ago, in 2024.
By comparison, the October 2023 amendment to the Consumer Protection Act (Kuluttajansuojalaki) in Finland imposed a cap on lender interest rates at the reference rate (currently 3.5% to June 2025), plus 15 percentage points. In the case of the reference rate rising, the maximum interest that can be imposed on consumer credit is 20%.
User-Friendly Loan Calculators
Finnish digital loan tendering sites, which are the recommended way of searching out the best loan offers, have made it easier for consumers to choose which loan terms will suit them best (loan amounts and repayment terms) by introducing loan calculators.
You can get an idea of what the monthly repayment amounts will be, what range of interest could apply, and how much the loan will cost you to repay in total by positioning the amount and loan terms sliders into position. You can play around with these loan parameters until you find the best result for your personal financial circumstances.
Closing Thoughts on How Technology is Reshaping the Loan Landscape
Traditional banks and financial institutions have access to the same Fintech technology as the new, disruptive, alternative lending platforms have stolen a match on them, and as they try to catch up, it’s likely that the new kids on the block will keep innovating and moving ahead. It’s all good news for consumers who can look forward to an ever-changing, ever-improving personal loan availability landscape.