Peer to Peer Lending ("P2P") Platforms

P2P is probably most readily associated with the consumer-focused Zopa, which claims to have created the market almost ten years ago. However, BG Consulting shows that small businesses are also benefiting from this new technology.

This BG Consulting's Newsletter looks at how banks should respond and key incentives aprticularly focusing on the following:

How should Banks Respond?

  • Algorithms Linked to Social Networks
  • Pricing Decisions
  • Funding Cost Advantage
  • Portfolio Diversification
  • Investor Protection
  • Attractions to Borrows from P22


Some Key Incentives:

  • Incentive Problems
  • Monitoring and the Identification of Early Warning Signals
  • Problem Loans
  • Education of Lenders

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