{"id":14933,"date":"2020-05-22T08:30:29","date_gmt":"2020-05-22T08:30:29","guid":{"rendered":"http:\/\/bulletins.bfconsulting.com\/?p=14933"},"modified":"2020-05-22T08:30:29","modified_gmt":"2020-05-22T08:30:29","slug":"covid-19-s-impact-on-p2p-lending","status":"publish","type":"post","link":"https:\/\/bulletins.bfconsulting.com\/en\/covid-19-s-impact-on-p2p-lending\/","title":{"rendered":"COVID-19\u2019s impact on P2P lending"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">COVID-19 has caused a significant downturn in economies around the world, impacting the personal finances of millions worldwide. This, in turn, has had a major effect on P2P lending. In fact, many P2P investors have made the equivalent of a bank run on P2P platforms to recover their funds, leading to liquidity problems for many P2P platforms. At the same time, other platforms have simply shut down operations until the pandemic has passed, locking up millions in investor funds. There are also many selling their P2P investments at considerably discounted rates, decreasing their returns and opening an opportunity for others to take advantage of impulsive decision-making to increase their own returns.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As for how well investments are actually doing, it is dependent on the type of lending invested in. Investments in consumer loans bear some risk as there is an overall decrease in consumer spending and there are likely to be some issues with delayed repayment and higher default rates. At the same time, this risk is widely considered to be minimal in the long term. Real estate loans, on the other hand, are much less risky as they are secured by mortgages. Business loans, however, are much trickier to determine as COVID-19 is impacting businesses very differently depending on the type and location of each business. As such, investments in business loans could be either a high-yielding venture or result in a total loss.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the end, the full impact of COVID-19 on P2P lending remains to be seen, but it seems likely that those that are best positioned are those with a well-diversified P2P portfolio.<\/span><\/p>\n<div class=\"rpbt_shortcode\">\n\n<div id='rpbt-related-gallery-1' class='gallery related-gallery related-galleryid-14933 gallery-columns-3 gallery-size-thumbnail'><figure class='gallery-item' role='group' aria-label='How generations Y and Z are changing how banks operate'>\n\t\t\t<div class='gallery-icon landscape'>\n\t\t\t\t<a href='https:\/\/bulletins.bfconsulting.com\/en\/how-generations-y-and-z-are-changing-how-banks-operate\/'><img width=\"150\" height=\"150\" src=\"https:\/\/bulletins.bfconsulting.com\/wp-content\/uploads\/2018\/03\/multi-ethnic-young-people-using-smartphone-and-tablet-computers_1139-994-150x150.jpg\" class=\"attachment-thumbnail size-thumbnail\" alt=\"\" decoding=\"async\" aria-describedby=\"rpbt-related-gallery-1-8859\" loading=\"lazy\" \/><\/a>\n\t\t\t<\/div>\n\t\t\t\t<figcaption class='wp-caption-text gallery-caption' id='rpbt-related-gallery-1-8859'>\n\t\t\t\tHow generations Y and Z are changing how banks operate\n\t\t\t\t<\/figcaption><\/figure><figure class='gallery-item' role='group' aria-label='National Bank of Ukraine updating financial sector development strategy'>\n\t\t\t<div class='gallery-icon landscape'>\n\t\t\t\t<a href='https:\/\/bulletins.bfconsulting.com\/en\/national-bank-of-ukraine-updating-financial-sector-development-strategy\/'><img width=\"150\" height=\"150\" src=\"https:\/\/bulletins.bfconsulting.com\/wp-content\/uploads\/2020\/06\/73426-1891-150x150.jpg\" class=\"attachment-thumbnail size-thumbnail\" alt=\"\" decoding=\"async\" aria-describedby=\"rpbt-related-gallery-1-15040\" loading=\"lazy\" \/><\/a>\n\t\t\t<\/div>\n\t\t\t\t<figcaption class='wp-caption-text gallery-caption' id='rpbt-related-gallery-1-15040'>\n\t\t\t\tNational Bank of Ukraine updating financial sector development strategy\n\t\t\t\t<\/figcaption><\/figure><figure class='gallery-item' role='group' aria-label='FinTech Prospects in Central Asia | Video'>\n\t\t\t<div class='gallery-icon landscape'>\n\t\t\t\t<a href='https:\/\/bulletins.bfconsulting.com\/en\/fintech-prospects-in-central-asia-video\/'><img width=\"150\" height=\"150\" src=\"https:\/\/bulletins.bfconsulting.com\/wp-content\/uploads\/2021\/03\/af342ac2-a9ff-46bb-9967-30029202bf251-150x150.png\" class=\"attachment-thumbnail size-thumbnail\" alt=\"\" decoding=\"async\" aria-describedby=\"rpbt-related-gallery-1-15866\" loading=\"lazy\" \/><\/a>\n\t\t\t<\/div>\n\t\t\t\t<figcaption class='wp-caption-text gallery-caption' id='rpbt-related-gallery-1-15866'>\n\t\t\t\tFinTech Prospects in Central Asia | Video\n\t\t\t\t<\/figcaption><\/figure>\n\t\t<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>COVID-19 has caused a significant downturn in economies around the world, impacting the personal finances of millions worldwide. This, in turn, has had a major effect on P2P lending. In fact, many P2P investors have made the equivalent of a bank run on P2P platforms to recover their funds, leading to liquidity problems for many &hellip;<\/p>\n","protected":false},"author":12,"featured_media":14934,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10,16],"tags":[522,521],"_links":{"self":[{"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/posts\/14933"}],"collection":[{"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/comments?post=14933"}],"version-history":[{"count":1,"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/posts\/14933\/revisions"}],"predecessor-version":[{"id":14935,"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/posts\/14933\/revisions\/14935"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/media\/14934"}],"wp:attachment":[{"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/media?parent=14933"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/categories?post=14933"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/tags?post=14933"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}