The world of finance and lending has recently begun to experience the innovations of the digital world that have been widely felt across other sectors. However, while global industries have been greatly influenced over the past two decades, finance has remained relatively stable.

Not anymore. Within the last few years, leaps and bounds have occurred in crypto, lending systems, mobile payments and more. 

Sidney Powell, CEO and Co-Founder of Maple Finance, argues that the lack of development has resulted from an absence of infrastructure capable of handling innovation. But times are changing as the foundation of new financial systems arise and exciting new possibilities emerge.

Join us as we discuss:

• Current shortcomings in the lending space
• Benefits of blockchain in lending
• Predictions for the future of financial services

The lending industry has much to gain from blockchain technology

Blockchain offers many advantages over traditional financial systems. Rather than being housed in a singular location, with its safety at the mercy of natural disasters, power outages, and tech problems, blockchain is distributed. 

While the distributed nature may create a more complex system, it also results in greater security and reliability. If one location is infiltrated or destroyed, the information is not lost. Blockchains are also much more challenging to change or corrupt. 

Finally, blockchain is completely transparent, meaning those wanting information can track each motion and transaction chronologically. If there is malicious corruption and crypto stored in a blockchain is stolen, it can quickly be located and devalued. So, transactions stored using blockchain technology are secure.

Blockchain has applications across many fields, but a few benefits are specific to the lending world.

Maple Finance is winning in the lending sphere 

By utilizing blockchain technology, Maple Finance offers lower costs and heightened profitability. This edge has allowed them to gain success without developing a specialized offer.

Ultimately, using blockchain technology has allowed Maple Finance to cut out the third-party middleman that slows transactional processes and comes with a significant price tag. Without banking holidays and relying on employees, lenders utilizing blockchain streamline transactions with wait times ranging from minutes to hours, depending on the transaction size.

While there is still processing time, blockchain and crypto transactions are the closest way to come to real-time transactions. 

Maple Finance has also taken the traditional five or six processes required for financing and simplified them into one. As a result, not only do they utilize the benefits of crypto and blockchain technology, but they also streamline the process for middle market lenders.

While the services Maple Finance offers are something that others could do elsewhere today, Powell explains the innovation in their process that sets them apart, and it all returns to the blockchain. 

He says, “Can you stand up a lending business at a fraction of the cost and start lending loans and being profitable within your first month? No, that's pretty impossible without blockchain.” 

Bold predictions for the future of financial services

The difference that crypto has made for lenders and borrowers through the simplified Maple Finance platform has shed light on the widespread possibilities for crypto in the lending industry. 

While traditional banking likely won’t disappear, Powell believes many changes will come in the way that transactions and information are completed, recorded, and stored.

Ultimately, crypto and blockchain technology is still evolving across many different industries. While the initial investment in shifting to these technologies may be relatively high, the long-term effects and immediate benefits are growing to outweigh the costs. 

However, new technologies aren’t for everyone. According to Powell, there is a way to predict which organizations will have the upper hand in the future. 

As the infrastructures are steadily readying to adopt innovative ideas and continuously evolve to more efficient, better profitable systems, more organizations will be able to adopt new technologies.

With blockchain technology and the increasing importance of crypto in real-life, tangible and widespread manners, these systems will only grow. Powell argues that those who exist at the top of their industries will be most able to embrace innovation and change, propelling themselves further into success.

Stay tuned for new episodes every week on the Leaders in Lending Podcast.