P2P Lending Platforms allow customers to borrow from an individual or group of individuals who are willing to lend money to qualified applicants. P2P allows lenders to access a new class of investments while allowing borrowers to receive loans from more varied sources, often at more favorable terms than conventional financial institutions. Debt Crowdfunding as a use case of P2P lending allows customers to fund the startups they use at a smaller ticket size.
Assessing the credit-worthiness of a users seeking credit and managing payments between multiple sources is near impossible to achieve at scale through wire transfers.
Lean allows P2P lenders to see the credit worthiness of their clients and seamlessly manage the flow of payments between parties through a simple transactional API providing bank-to-bank transfers without worrying about the complex and error prone process of wiring funds.
How Lean helps P2P Lending.
Fintechs can use the transaction data of customers and corporations seeking funds to assess their credit-worthiness and instantly analyze their financial wellbeing. This allows them to make enhanced data-driven decisions on the loan conditions for a potential debtor.
Fintechs can initiate bank-to-bank payments from lenders and debtors (repayment) programmatically rather than requesting wire transfers, which are cumbersome, error-prone, and therefore often delayed.
Lending fintechs can use use Lean’s payment initiation services to disburse funds to debtors and at the end of the loan’s maturity back to the lender, avoiding the need to do so manually.