The advantages of crowdfunding over banks
Greetings. 🤗 In this post, we will tell you about the advantages of crowdfunding over banks. 💰
⚡️ The rapid development of technology leads to the emergence of new types of financial interaction. One example is crowdfunding, which in the simplest sense, represents public finance through specially created Internet sites. In other words, crowdfunding is a process of raising funds, when anyone can transfer money to a specific person for certain purposes and receive a material reward in the form of a product or service, a percentage of income, or a share in the property.
📊 The task of crowdfunding sites is to organize a special space in which potential investors and borrowers can find each other. The success of fundraising depends on a number of factors, in particular, on the originality and uniqueness of the project. Background to the growth of crowdfunding may vary from country to country. For example, in the United States, a well-developed IT sector and the availability of modern and convenient crowdfunding platforms play an important role.
💰 An ICO can be considered as crowd investing. Therefore, in our opinion, the main incentive for the further development of crowd platforms is the creation of a comfortable and flexible legal environment for investors and borrowers. An important point is the ability to respond quickly and adapt legal acts based on changes in the financial sector and the introduction of new technologies.
📈 Crowd platforms increase competition in the credit market. They often focus on customers who, for whatever reason, are not very interesting to banks. For example, if a person has no credit history, he is a foreigner, or his project has high risks, then banks are unlikely to provide him a loan.
💰 Banks may also be interested in developing crowdfunding venues. Successful implementation of projects on crowd platforms helps the development of startups and the development of small and medium-sized businesses. In turn, new companies are becoming customers of all the same traditional banks. Crowd sites themselves often collaborate with banking services: the collected funds are accumulated in a special account with a partner bank. The cooperation of crowd platforms and banks is an example of close interaction between fintech and traditional banking structures.
🔗 Legal entities that have signed a cooperation agreement with OKSCHAIN can accept/send payments in digital currencies. Integration of OKSCHAIN with your service, website, online store or crowdfunding platform is carried out with the help of an API merchant. This service is provided free of charge, but a commission fee of 1% of the amount of payments is charged for transactions from the service.
The service is in demand by online stores, forex brokers, cryptocurrency exchanges, interactive casinos, dating sites, online games, investment companies, as well as this solution is in demand by crowdfunding companies.
Check our website for more information: https://okschain.com/en/
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