Peer-to-peer lending is good for the industry because it means more capital for borrowers and greater scale for the platform than would be achievable through individual lenders. The new finance model of Peer-to-Peer Lending (P2PL) has reshaped the financial industry over the past few years with new and innovative platforms introducing new lending services.
UCG TRUST as one of the fastest growing FinTech company continues to improve and expands its activities thus creating more opportunities and flexibility for investors, providing them with a fixed term investment accounts, which are similar to conventional savings accounts.
Since UCG TRUST was launched at the beginning of 2016, the number of registered investors on the platform has reached a milestone of 18,000 with the average amount of investment €19,000. The growth of investors wishing to invest into lending platforms accompanied by a desire to transform the traditional banking system in a new simple financial world.
The P2P sector’s attraction to investors increased significantly in the wake of the 2008 global financial crisis, when central banks around the world responded with sharp reductions to interest rates and much lower returns on conventional savings accounts. As Banks have tightened their financing processes, this fast growing financing model has revolutionized the global financial market.
Peer to peer investing is surging in popularity as investors look for investments that provide stable cash flow and higher returns and the number of platforms has continued to grow, and the range of financing options has expanded.
FinTech firms are trying to alter the small business lending market by using technology to streamline the lending process. Traditionally, banks relied on the CIBIL scores to judge the creditworthiness of potential borrowers. However, for many small businesses, analyzing their creditworthiness remains an issue.
A huge chunk of businesses depends on the grey market to meet their financing needs and stay away from banks with a notion that they are not eligible for any funds. As banks required businesses to have a heavy asset strength for getting a loan, many businessmen could not get the loans for business purposes easily.
The FinTech industry can solve a lot of these problems in a similar fashion to mobile industry changing the face of communications. Lending platforms are the one-stop destination for borrowers looking for financial solutions that match their specific needs. Hence those who were denied loan by banks, because of a bad credit history, also have an easily available source of the loan. At the same time, small business owners are finding the FinTech platforms very easy to use.
