P2P Lending in Singapore Essay
This study focuses on demand of P2P market among SMEs and consumer market. The researcher has developed a framework based on how peer to peer lending platforms are important for SME’s and what are the governmental regulations to promote online lending platforms, how SMEs play an important role in the development of economy, how important is the peer to peer platform to them and the future position of peer to peer market in Singapore. The focal point lies on the demand of peer to peer lending platforms among small and medium enterprises and consumer market. The study illustrates a high demand of peer to peer lending among small and medium enterprises regardless of less security of investment. This study also includes risk and …show more content…
Most peer to peer lending platform expands during the recovery period of the economic crisis 2008. Zopa.com is one of them. In 2005, it claimed to have one of the best loan performances among the entire peer to peer lending platform with post-crisis since 2010. Despites the growth, there were many peer to peer lending platform that experienced greater lose due to the economic downturn.
UK being the third largest national crowd funding economy after USA and China, its peer to peer lending platform has gathered and created their own self-regulating organization, the Peer-to-peer Finance Association (P2PFA). Members of this platform tend to help themselves to higher standards as compare to others lending platform. These peer to peer lending platforms are rewarded for setting up the organization by gaining a huge amount of public and governmental goodwill within UK.
Peer to peer lending platform setup a database for borrowers to find suitable investment match. The business model for every country varies; some investors are directly linked to borrowers while others, borrowers are required to create accounts, providing information, for the purpose of loan, loan amount, income and debts in order to link investors. Even