Omprakash Banerjee, Omprakash Banerjee impact,p2p,lending,traditional,services
Impact of P2P Lending on Traditional Services in General
They say a problem well defined is half solved. Hence, let’s explore what this P2P lending (P2PL) is all about at the first place for an understanding of its impact on the traditional a.k.a. the conventional services.
Well, P2PL stands for peer to peer lending. It essentially involves money lending to some unrelated people (also known as peers) without the support of the traditional intermediaries such as the financial institutions and the banks. This P2PL model operates through the online transfer of money from a P2P company to an individual. The P2PL is also known as the crowd lending.
P2PL is, however, different from that of the peer to peer investing (P2PI) and it works on the parameters like the credit checking tools and the different lending platforms.
According to a research conducted by the Morgan Stanley, the P2PL will hit $22 billion mark by 2020 in Australia. Zopa, a UK based company, specialises in P2PL. You can either borrow money from Zopa or can lend your money to it for the good returns. That’s the catch.