Domination of Institutional Investors Pose Challenge to P2P Platform : Ken Research

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Domination of Institutional Investors Pose
Challenge to P2P Platform
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• P2P lending platforms have recorded a 400-425
  basis point advantage over traditional channels.
• These P2P platforms have become a huge
  competition for the banks.
• Ken Research has announced its latest publication
  on, P2P LENDING RESPONDING TO DISRUPTION,
  which offers a comprehensive analysis of the
  reasons behind the rise of Peer-to-Peer consumer
  lending platforms. The publication examines the
  impact of success of P2P platforms on the retail
  banks and their deposit bases. The report
  includes an overview of the global lending
  landscape with an emphasis on countries where the
  risk to banks from P2P disruption is the highest.
  The report examines how these P2P platforms
  developed a competitive edge by thoroughly
  understanding its development and evolution.
  Additionally, the report also offers insights
  regarding how the retail banks can make
  improvements so as to counter the competition and
  retain their customers.

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• Peer-To-Peer lending is the practice of lending
  money to businesses or individuals with the help
  of online platforms that matches the borrowers
  directly with the lenders. Because of its
  unorthodox means of operations, P2P lending is
  often considered beyond the boundaries of typical
  financial institutions and is described as an
  alternative financial service. Unlike the
  traditional retail banks, P2P lending platforms
  do not necessarily try to common bond between the
  lenders and the borrowers. Some of the unique
  features of these P2P platforms include ability
  of lenders to choose which borrowers to invest
  in, crowdsourcing facilities for unfamiliar
  borrowers and lenders along with low costs of
  operations.

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• Over the years, P2P platforms have gained
  widespread acceptance. Their popularity is now
  considered a threat of disruption for the
  traditional retail banks. Unlike other online
  financial services, P2P lending platforms target
  the same creditworthy lucrative borrowers as the
  retail banks, making it increasingly difficult
  for the banks to remain profitable. Some of the
  key factors that have provided P2P lending
  platforms with a competitive advantage include
  the use of alternative credit risk models,
  cheaper cost of credit and subsequent high
  accuracy of default risk management.

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• P2P lending platforms are also benefited from
  high customer loyalty and retention rate. Almost
  75 of all its customers have reported intentions
  of repeat purchase because of higher returns at
  lower costs and better risk management. The
  lowers risks can be attributed to fractional
  lending which allows the platforms to reduce the
  risk of exposure. Though the P2P platforms are
  trending, the continuous domination of
  institutional investors might pose a risk to
  their sustainability over the years. Overall, the
  market for P2P lending platforms is projected to
  grow over the years.

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• Global P2P Lending Trends
• Till 2015, institutional investors had kept away
  from P2P platforms, but now they are beginning to
  relent and first signs of institutional
  investments are showing up. Fund managers across
  the globe are seeking to gain better yield even
  when the money market rates continue to
  disappoint. Thus, HNWs have shown interest in
  investing in P2P platforms that are less risky
  and may offer better yield.
• Some of the global P2P lending trends include
• Increasingly global reach and expansion with the
  advent of marketplace lending
• Innovation that is born from global financial
  crisis and is focused on reducing lending risks
  and credit costs.
• New generation of millennial investors that
  prefer Internet-based services over traditional
  retail banking solutions
• A large number of SMEs are using P2P platforms
  as banks still remain unapproachable in most
  cases.
• The role of regulators within this industry will
  also be the highlight of 2016, as they will
  define and shape its path for future success.

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• Key Topics Covered in the Report
• Detailed introduction of various concepts of P2P
  lending
• Strengths of P2P platforms
• SWOT analysis of retail banks in the consumer
  lending industry
• Key takeaways for retail banks
• Verdict Financial 2015 Retail Banking Insight
  Survey
• To know more on coverage, click on the link
  below
• https//www.kenresearch.com/banking-financial-serv
  ices-and-insurance/banking/p2p-lending-disruption/
  7312-93.html
• Related Reports
• Mass Affluents Attitudes and Needs in Australia
• Mass Affluents Attitudes and Needs in China
•  
• Contact
• Ken Research
• Ankur Gupta, Head Marketing Communications
• query_at_kenresearch.com
• 91-124-4230204

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