Tags Online Lending
Time-consuming, lengthy and rigid procedures for financing began to frustrate borrowers following the 2008-2009 global financial crisis, especially when banks started to become stricter about loan disbursements. This has opened the way for more innovative lending and borrowing options. The result has been the rise of peer-to-peer (P2P) lending which offers simplified procedures, quick lending decisions and better interest rate deals along with more transparency. Today, P2P platforms are among the fastest growing segment in financial services. A finding by Transparency Market Research suggests that the global PTP market is on track to be worth USD 897.85 billion by 2024, up from USD 26.16 billion in 2015.
While PTP platforms face some significant challenges in managing default risks, managing fraud or even borrowers going back to banks, the growth prospects of this segment remain strong, especially when the banking sector continues to struggle with lingering damages. Thus, well-regulated and transparent peer-to-peer platforms offer great opportunities as alternative investments for loan providers as well as for borrowers.