The future of work and commerce lies in the digital age. In essence, nearly every industry is making a shift towards adopting new technology and strategies in order to keep up with these changes. In turn, an increasingly tech-oriented market is ready to embrace more convenient and more beneficial digital options if traditional institutions can’t keep up.
In fact, one of the technology trends for financial services is the digitizing of institutions like banks, insurance companies, and now, pawnshops. Pawnshops are indispensable members of any community, especially to sectors that don’t have access to more formal financial institutions.
The act of pawnbroking has provided people from all walks of life an avenue to borrow a small amount of money in times of critical need, saving them the trouble of securing easy loans from neighbors or relatives, or undergoing intense scrutiny when applying for bank loans. With online pawnshops entering the market, this financial need can be easier met.
An online pawnshop provides numerous advantages over their traditional counterparts. Firstly, anyone can enjoy the convenience of transacting from the comforts of their home—basically any location with an internet connection.
Secondly, online pawnshops accept a more extensive range of items for the appraisal—high-end electronics, power tools, fan collectibles, luxury goods such as bags and watches, and more.
Thirdly, online pawnshops maintain minimal overhead costs, therefore reducing interest rates and making it easier to repay loans.
Finally, application for loans becomes even easier as there are no limitations to who can apply and when.
In the long run, online pawnshops and other new financial trends can pave the way for broader financial inclusion, empowering more people to take charge of their financial situation. To learn more about pawnbroking, its impact on financial decisions, and a comparison of both traditional and online pawnshop operations, check out the infographic below.
Author: Kim Tan