What Uber has done for the transportation sector, FinTech companies are now starting to do for the financial sector in India. The increasing digitization of data in the country has given the means for almost anyone to access financial and credit data at negligible costs, enabling completely new business models that bypass financial institutions. Perhaps the most influential model currently disrupting the financial sector in India is peer-to-peer (P2P) lending. P2P lending platforms connect individuals looking to borrow with those willing to lend, taking advantage of tech-enabled processes that reduce intermediary costs. This has the benefits of lowering interest rates for borrowers and giving higher returns for lenders.
The possibilities for FinTech in general and P2P in particular are seemingly endless. Globally, P2P lending is growing at a rate of 48% and is expected to exceed USD 800 billion by 2024. As long as P2P lending platforms continue to innovate, maintain their lending standards and benefit from regularly-upgraded technology, the uberization of lending in India and around the world will only continue grow.