Fintechs rely heavily on blockchain to make the transactions smooth and safe and while both of these technologies often face criticism for being vulnerable to attacks, the fintech industry keeps growing and expanding its reach over the world. Alchemy technology is a fintech infrastructure development company that just recently announced its partnership with Skeps, a decentralized marketplace for consumer loans that operates through blockchain technology.  Alchemy is an end-to-end cloud-based SaaS solution provider that works with banks and financial companies and is operating from Utah. 

The online loans have been a popular service for a while, but now they can be easily accessed and provided through the blockchain technology, making the process not only faster and more transparent but also way cheaper. This is the main motivation for this collaboration as well. Both of these companies are hoping to decrease operating costs by cutting the need for hiring engineering developers and working together instead. The two have a similar vision when it comes to getting approval for financing options for the customers and Alchemy and Skeps to want to simplify and accelerate this process by working together on helping to get the approval for their merchants faster. 

Blockchain overtaking the financial world

The blockchain-based loans have all the best qualities of online loans but they're even more enhanced, faster and cheaper. This technology has a big future and everyone involved in the blockchain community is trying to make sure that the service is up to the standard so that the users, even the ones not familiar with the way this technology works can use these services.

Alchemy and Skeps have decided to remove their clients from hosting underwriting criterion and decision engine, resulting in fully qualified end consumers that are ready to e-sign. While Alchemy is working toward improving the user experience, Skeps is working with lenders to make sure that those who make such requests for loans are capable of paying it back and are trustworthy customers. 

Why simplification is so crucial for fintech

Since the industry is so new, there are many loopholes around it too. The easier and faster services that are great for the regular user, could also be exploited easier than the regular online loaning systems or the banks. Skeps will make sure that the customers that make the request for the loans at Alchemy are qualified and safe to work with, making the job easier not only for those working for Alchemy but for the customer as well, knowing that they are working with a trustworthy provider.

This collaboration might seem odd, considering these two do completely different things, but the request from both sides was that the partnership and communication that does happen between these two, be made easier and require fewer resources, be that time or people hired to make communication more efficient.

The fintech industry’s biggest challenge to this date is the topic of safety. While there are ways to scam and create fraudulent activity in the regular loaning systems as well, fintech is facing many more obstacles from the users than the regular banks. Alchemy has taken upon itself to start reshaping the blockchain operated financial services. Having created a seamless loaning platform that grants the user the anonymity, while trying to decrease risks and mistakes that can’t really be fixed. This is why it's crucial that before the company loans out the money to just any user, they undergo a financial background check, very similar to what they do in traditional banks. Skeps have been helping merchants to display personalized financing options for their users since 2018, and it helped the financial institution stand the merchants to come up with an appropriate option for their customer base. 

An example for future collaborations

The partnerships will create a much more simple infrastructure that will make the loans safer, more efficient and overall more convenient for the user and everyone involved in this procedure. 

This is a great example of the efficient collaboration and partnership between the firm operating in a relatively new and vulnerable field and wanting to match the safety and convenience of the loan given out by the establishments that have been doing this for years on end. 

Now the users wanting to access their services will get a new and improved service, without lengthy and unnecessary procedures that delay the transactions and the qualification process.

The fintech that delivers loaning services will definitely become more popular in the upcoming year or two. The companies that are delivering these services will need to work on the existing infrastructure to make it as simple as possible for future customers.