P2P allows investors to get high returns in a short period of time. Thus, it attracts investors to this innovative platform which introduces new approaches to investments through the usage of the internet. The increased number of P2P investors prove that it acts as a vital role in the future prospect (fintech world).
Traditionally, people that need loans will only go to a bank or licensed financial company, but the high interest rate might scare them off. Seizing on this opportunity, the emergence of P2P which offers lower interest rates for borrowers and greater returns for investors solve all the problems.
It simplifies the traditional bank application process by reducing the amount of unnecessary paperwork. P2P requires investors and borrowers to submit applications online which make the overall process easier and user-friendly. Borrowers will only need to register an account on a platform and lend money at their preferred interest rates and set the time for borrowers to repay the money. He or she can discover the list of money lenders and connect with them easily. The entire process can be completed in just one platform, without meeting each other face-to-face!
When borrowers need money as soon as possible, P2P is their best option because the processing time is shorter than banks, mostly within 7 days. Other than that, borrowers can request an amount that is equivalent to or less than $1000, at any time anywhere, by accessing the platform online (website or mobile app).
Sounds easy right? Since the world evolves with fintech innovation, P2P has been welcoming more and more users. By playing an important role in the financial sector, it gives individuals and start-up companies the much needed financial solutions to achieve their dreams. Besides, it can also help investors to seek for a better avenue as opposed to the inconsistency of shares and low returns.
As a platform that helps to rebuild the whole fintech industry, it is just a matter of time for P2P to fully replace traditional bank loans and create a new market trend.