Can P2P Lending Reinvent Banking?
Need to borrow a not-insubstantial sum of money? Some options that may spring to mind: the friends and family plan, maxing out credit cards, or the traditional bank.
Now, imagine you could whip out your smartphone, answer some simple questions on an app, offer basic bona fides, and get an answer within minutes. If the latter sounds appealing, that could explain why, over the past several years, peer-to-peer lending has swelled in popularity.
P2P lenders have leveraged low operating costs, minimal regulations, Big Data and technology streamlined for a mobile generation to mediate terms between everyday borrowers who want quick access to cash and the lender-next-door starved for yield. It’s a fast-growing financial model, with global variations, that some have predicted could upend the traditional banking industry. Right now, however, it is attracting institutional investors, as well as big banks eager to learn how to become more agile.
Read full article at Morganstanley.com
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