In the field of fintech, an innovative lending model is attracting widespread follow. The "Time Value of Money" (TVM) model proposed by Huma Finance is challenging the inherent concepts of traditional lending.

Traditional lending mainly relies on collateral, profiting through risk spreads. However, Huma's TVM model takes a different approach, focusing on the time value of money. This concept emphasizes that current funds are more valuable than an equal amount of future funds, as current funds can be put to use immediately, creating more value.

Huma's TVM model cleverly converts future income into current usable cash flow, greatly improving the efficiency of capital utilization. For example, if a person has a monthly salary of 10,000 yuan, the total income for the upcoming year would be 120,000 yuan. In a traditional lending model, it might be difficult for this person to obtain a loan without collateral. However, Huma's TVM model assesses the present value of this 120,000 yuan future income and issues loans at a rate of 70%-90%, enabling borrowers to access funds immediately to meet urgent needs.

It is worth noting that the entire loan process of Huma is automatically completed through smart contracts, requiring no manual assessment, greatly improving efficiency and accuracy. This is not just an innovation in the way of lending, but also a redefinition and utilization of the value of funds.

Huma's TVM model demonstrates the immense potential of financial technology. It not only meets people's immediate funding needs but also utilizes the value of future income more effectively. This innovative model could have a profound impact on the traditional financial industry, driving the entire sector towards a more flexible and efficient direction.

With the rise of emerging fintech companies like Huma, we have reason to expect that the future lending market will become more diversified and personalized. This innovation not only provides users with more choices but may also promote the healthy development of the entire financial ecosystem.