Moreover it provides access that is improved credit for customers who cannot get it from traditional loan providers.
The model that is p2PL advantages for customers with regards to convenience. During the time that is same P2PL also poses major dangers to any or all the parties involved – that is, customer loan providers, customer borrowers, online payday loans Kentucky and platform operators (European Banking Authority 2015a). The risks to consumer lenders and borrowers who use the services of a platform deserve special attention in the present context. Consumer lenders may lose the quantity borrowed after either the customer borrower’s or even the platform’s default (European Banking Authority 2015a, pp. 2-14; Macchiavello 2017). They may additionally be unaware of such risks, relying on deceptive adverts or unverified information, in specific concerning the customer borrower along with his or her project. It really is notable that present data reveal a rise in defaults and company failures within the P2PL markets (Zhang et al. 2016a, p. 47; Zhang et al. 2016b, p. 34). [Read more…]