Peer-to-peer lending

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Video Peer-to-peer lending

Definisi yang diterima secara umum & amp; karakter

According to some financial regulators, while the Peer-to-Peer P2P Lending definition does not yet exist, the World Intellectual Property Organization (WIPO), United States Patent and Trademark Office (USPTO) of the Canadian Intellectual Property Office (CIPO) and the United States Government Accountability Office (GAO) recognizes that Peer-to-Peer (P2P) Loans (identical to the term Person-to-Person Loans, "Personal Loans", "Cryptolending"), also known as P2P Loans [Peer-to-Peer Investment front, "Private Investment", "Cryptoinvesting"; also known as P2P Investment] is "the practice of borrowing/investing or borrowing money from a private individual (or person) [in the" lender "," private lender "or" P2P borrower "or" cryptolender "role for a private individual (or anyone else) [in the "borrower" role, or "personal borrower" or "P2P borrower" or "cryptoborrower"].

Although individual or private company participants in "Peer-to-Peer P2P, Private & Crypto-" activities are not subject to 3rd party disclosure; "Peer-to-Peer P2P, Private & Crypto-" Lending (or front: "Peer-to-Peer P2P, Private & Crypto-" Investing) is classified as "regulated" or "unregulated" by supervision government. The Regulator acknowledges that "P2P Peer-to-Peer, Private & Crypto-" Lending/"P2P Peer-to-Peer, Private & Crypto-" Investment transactions can be derived (made) either directly through direct advertising by the Giver P2P Loans (Investors); or, through an intermediary (licensed or unlicensed broker) or, through a technology platform.

The principle of synonymity

In accordance with the dictionary and thesaurus definition, the following terms are identical to the others:

• Peer-to-Peer P2P (eg peer-to-peer or P2P lenders, peer-to-peer or P2P or peer-to-peer or P2P borrowers)
• Private (for example: private lender, private investor, or private borrower)
• Crypto (eg: cryptolender, cryptoinvestor or cryptoborrower); unlike other terms, when the adjective "crypto" is applied, not followed by a space

The hierarchy of the North American industrial classification system

sector:

 Keuangan  

Attribute: Peer-to-Peer/Private/Crypto Finance - The "peer-to-peer", "private" or "crypto" adjectives are applied to describe attributions to be confidential or non-public.

Sub-sector (Activity):

 Peer-to-Peer/Private/Crypto Credit Intermediation  Peer-to-Peer/Private/Crypto Securities and other financial investments  

Industri (Layanan atau Produk):

 Peer-to-Peer/Private/Crypto Mortgages    Peer-to-Peer/Private/Crypto Loans    Mata Uang Peer-to-Peer/Private/Crypto    Peer-to-Peer/Private/Crypto Securities    Peer-to-Peer/Private/Crypto Aset/kewajiban lain/ekuitas/hutang  

Other countries or jurisdictions or economic zones have an equivalent class.

Priority, system architecture, reference architecture, ontology, reference implementation, international standard benchmarks, financial regulators & amp; Rule recognition

Priority, system architecture, reference architecture, ontology, references implementation

The World Intellectual Property Organization (WIPO), the United States Patent and Trademark Office (USPTO) of the Intellectual Property Office of Canada (CIPO) and their organization of international partners of intellectual property (member states) are rivaled [the word "denied" is legislatively defined, corresponding to Canada (WIPO Member State) Federal Trade-marks Act RSC, 1985, c. T-13)] recognizes (in accordance with international treaties and conventions) that are used commercially the peer-to-peer of the world's first P2P financial network (also known as "private financial network" or "cryptofinance network") trade in both governed governments regulated) [including the world's first P2P peer-to-peer (personal or cryptographic) regulated mortgage instruments, registered as trademarks: BITMORTGAGEÃ,®] and non-governed () peer-to-peer P2P non-regulated ( private and cryptographic) financial instruments named PrivateLender.Org: Canada Private Lending NetworkÃ,® registered Internet for Corporation Assigned Name and Number ICANN.org) and enabled for global community use on April 9, 2005.

System architecture, reference architecture, ontology (state and dynamics) and reference implementations related to the trading of P2P peer-to-peer instruments both regulated and unregulated, were first identified in an exclusive dissertation entitled: "Digit Digit Binary: Peer-to-Peer Electronic Debt System "; system built on the blockchain seminal technology developed by Anoop Bungay in early 2000 - at least 3 years, 4 months and 10 days earlier (from PrivateLender.org: Canada's Private Lending Network® enabled) to date "Satoshi Nakamoto" "registering Internet domain Bitcoin.org (based on registration with Internet Company for the Name and Number of ICANN.org Assigned) and at least 3 years, 6 months and 10 days before the date of "Satoshi Nakamoto" issued a white paper " Bitcoin: Electronic Cash System Peer-to-Peer in Metzger, Dowdeswell & amp; LLC LLC "Mailing Cryptography" on Friday, October 31 at 14:10:00 EDT in 2008, and at least 3 years, 7 months and 30 days before the date "Satoshi Nakamoto" published the announcement of the release of Peer-to-Peer Electronic Cash System computer program named: "Bitcoin v0.1 released" on Thursday 8 January at 14:27:40 EST in 2009.

The term "Private Lending Pyramid (TM)" was coined by Anoop Bungay and published during the presentation of colleagues at Simon Fraser University on December 7, 2009. The Private Lending Pyramid (TM) functions as a trademark and source identifier to differentiate itself [in accordance with the law United States Patent and Trademark] from the general system architecture that describes the relationship and hierarchy between Private Lenders (identical to "Peer-to-Peer P2P Lenders") and four other sources of capital [developed on the basis of Ontology "ontological principle"] : "Bank"; "Trust Companies, Other Institutional Lenders"; "Common market: broker, professional, media"; "Friends, family, co-workers, general investors", "Personal Lenders".

International standard benchmark

Continuing from May 9, 2008 to at least May 9, 2018, system architecture, reference architecture together with ontology and reference implementations contained in "Hz Digit Digit Biner: Peer-to-Peer Electronic Debt System " The workforce became an international benchmark for the confidence and security of P2P (Personal Finance and Cryptofinance) Peer-to-Peer financial transactions through registration to the International Organization for Standardization (ISO) ISO 9001: 2000, ISO 9001: 2008 and ISO 9001: 2015; international standards for Quality Management Systems, and National Standards for 119 countries.

Specifically, the ISO 9001: 2015 Quality Management System Standard serves as a National Standard for over 119 countries including: Australia (AU), Canada (CA), China (CN) United Kingdom (UK), United States (US). Registration to the ISO 9001 standard provides instant confidence to legislators, regulators, regulators, customers, potential customers, stakeholders, interested parties and consumers, "that they can have confidence that their products are safer, reliable and of good quality."

Government, financial regulator & amp; Regulatory recognition (international, national & regional)

With more than 10 years of ongoing registration to International Standards; International, national and regional financial regulators in at least 119 member countries of the International Standardization Organization - dependent on International Standards for market efficacy and consumer safety in accordance with the laws of the country:

• US: Technology Transfer and National Progress Act (Public Law 104-113)
• Canada: Cabinet Instructions on Regulatory Management; Her Majesty the Queen in Canada, 2012
• United Kingdom (Great Britain): By Royal Charter: The British Standards Institution

 King George IV: Westminster (British Parliament), April 22, 1929; The original charter.  Â Â Â Â Â Elizabeth II: Westminster (British Parliament), 5 November 1931; 1968, 1974; Additional Charters.    

Recognizing that PrivateLender.org: Canada's Private Lending NetworkÃ,® - the world's first and only P2P, Private and Cryptofinance P2P system with more than 10 years of sustainable national and international financial operations - serves as a standard benchmark for "methods and better, safer and more efficient products "in the peer-to-peer, private and cryptofinance domains.

Organization Arrangements (or their member entities) that are influenced by national-based and international P2P, private or cryptofinance include:

• Organization of the International Securities Commission (IOSCO)
• World Exchange Federation (WFE)
• Bank for International Settlements (BIS)
• North American Securities Administrators Association (NASAA)
• G20
• G7

Maps Peer-to-peer lending

Confusion between " Peer-to-Peer, Crowdfunding, and Marketplace "Finance

Global regulators including Australian, British and US regulators recognize that Peer-to-Peer activity differs from so-called "crowdfunding" and "marketplace lending"; based on the principles of Distinctiveness/Descriptiveness Continuum (DDC) established by the United States Patent and Trademark Office which includes: the material, quality, characteristics, functions, features, purposes or use of certain goods or services.

Australian Regulator (ASIC)

Applying the principles of DDC, Australian regulators namely, Australian Securities & amp; Investments Commission (ASIC) recognizes that many online platforms claim to be "peer-to-peer" in quality, characteristics or functionality are not; viz.: "Although some forms of market lending are often referred to as 'peer-to-peer lending' or 'P2P', we consider 'marketplace lending' more accurately describe this loan arrangement, and encourage the use of this term."

English regulator (FCA)

The British Financial Conduct Authority (FCA) also acknowledges that when organizations collect funds from the public, jointly, the appropriate overall terminology is "crowdfunding". FCA refers to an online platform for investing not as a "Peer-to-Peer P2P Loan Platform", but a "crowdfunding platform". Further, the FCA expressly states [in the 2014 Policy Paper entitled: "FCA regulatory approach for crowdfunding via the internet, and the promotion of securities that are not easily realized by other media feedback for CP13/13 and the final rule"] that the right terms for the company which operates or plans to operate the "P2P" platform is a "loan-based crowdfunding platform". The FCA further refers to the industry as a whole, as a "managed-based crowdfunding sector"

src: fintechnews.ch

General history

Early peer-to-peer borrowing is also characterized by disintermediation and dependence on social networks. While it is still true that the advent of internet and e-commerce makes it possible to eliminate traditional financial intermediaries and that people may be less likely to fail on members of their own social communities, the emergence of new intermediaries has proven time and cost savings.

Most peer-to-peer intermediaries provide the following services:

• an online investment platform to enable borrowers to attract creditors and investors to identify and buy loans that meet their investment criteria
• development of credit model for approval and borrowing price
• verify the identity of the borrower, bank account, work and earnings
• perform a borrower's credit check and refine an unqualified borrower
• processing the payment from the borrower and forwarding the payment to the creditor who is investing in the loan
• serves loans, provides customer service to the borrower and seeks to collect payments from defaulted borrowers or under default conditions
• legal compliance and reporting
• find new creditor and borrower (marketing)

src: img.jakpost.net

Country experience

United Kingdom

The first company to offer peer-to-peer loans in the world is Zopa. Since its founding in February 2005, it has spent more than £ 1.99 billion on loans. Funding Circle became the first significant intercorporate loan lender in August 2010 and offered small business loans from investors through the platform. Funding Circle has lent more than £ 1.93 billion as of January 2017. Both Zopa and the Funding Circle are members of the Peer 2 Peer Finance Association (P2PFA).

In 2011, Quakle, an inter-state lender in the UK established in 2010, closed with a 100% failure rate almost after trying to gauge the creditworthiness of borrowers by group score, similar to a feedback score on eBay; model failed to encourage repayment.

As of June 2012, the top three peer-to-peer companies in the UK - RateSetter, Zopa, and FundingCircle - have spent more than Ã, Â £ 250 million on loans. In 2014 alone, they spent more than Ã, Â £ 700 million.

In 2012, the British government invested Ã, Â £ 20 million into UK business through peer to peer lenders. A second investment of £ 40 million was announced in 2014. The goal is to bypass high street banks, which are reluctant to lend to small companies. This action was criticized for creating unhealthy competition in the UK, focusing on financial support on the largest platform.

Investments have been eligible for tax benefits through an Inovative Financing Finance Savings Account (IFISA) since April 2016. By 2016, £ 80bn is invested in the ISA, creating significant opportunities for the P2P platform. In January 2017, 17 P2P providers were approved to offer the product.

Many peer-to-peer companies have also been established in the UK. At one stage there were over 100 individual platforms applying for FCA authorizations, although many now have pulled their apps.

Since April 2014, the peer-to-peer lending industry has been regulated by the Financial Conduct Authority to improve accountability by standard reporting and facilitate the growth of the sector. Peer-to-peer investments are not eligible for protection from the Financial Services Compensation Scheme (FSCS), which provides security up to Ã, Â £ 75,000 per bank, for each saver, but regulations require the company to apply the arrangements to ensure servicing of the loan even if platform broke.

By 2015, UK counterparts from UK to UK jointly lend more than £ 3bn to consumers and businesses albeit on an annual basis the book value of loans is Ã,  £ 2.3bn in 2015 which increases to à ,  £ 3.2 billion in 2016.

According to the Center for Entrenching Innovation Report, Ã, Â £ 3.55B is associated with the alternative finance model of Peer to Peer, the largest growth area is a property that shows an 88% increase from 2015 to 2016.

United States

The peer-to-peer lending industry in the US began in February 2006 with the launch of Prosper, followed by the Lending Club and other loan platforms shortly thereafter. Both Prosper and Lending Club are located in San Francisco, California. Early peer-to-peer platforms have few restrictions on eligibility borrowers, resulting in reverse selection issues and high levels of borrower default. In addition, some investors see a lack of liquidity for these loans, most of which have a minimum period of three years, because it is not desirable.

In 2008, the Securities and Exchange Commission (SEC) required peer-to-peer companies to register their offerings as securities, in accordance with the Securities Act of 1933. The registration process was very difficult; Prosper and Lending Club should temporarily suspend new loan offers, while others, such as UK-based Zopa Ltd, are out of the US market entirely. Both the Lending Club and Prosper obtained approval from the SEC to offer investor notes backed by payments received on loans. Prosperity changed its influence to allow banks to sell loans previously funded on the Prosper platform. Both Lending Club and Prosper formed a partnership with FOLIO Investing to create a secondary market for their records, providing liquidity to investors. Lending Club has a current voluntary registration, while Prosper has mandatory registration for all members.

This overcomes the liquidity problem and, in contrast to the traditional securitization market, results in demand for loans from peer-to-peer companies more transparent to lenders and secondary buyers who can access detailed information about each individual loan (without knowing the true identity of the borrower) before deciding on a loan which one will be funded. Peer-to-peer companies are also required to detail their offerings in the updated prospectus on a regular basis. The SEC makes publicly available reports via the EDGAR (Electronic Data Collection, Analysis and Retrieval) system.

More and more people are turning to peer-to-peer companies for loans and loans after the financial crisis of the late 2000s as banks refuse to increase their loan portfolios. On the other hand, the peer-to-peer market also faces increased investor controls as borrower defaults become more frequent and investors are unwilling to take unnecessary risks.

As of June 2012, Lending Club is the largest peer-to-peer lender in the US based on volume and loan revenues issued, followed by Prosper. The Lending Club is currently also the largest peer-to-peer lending platform in the world. The two largest companies have collectively served over 180,000 loans for a total of $ 2 billion: on March 22, 2012, the Lending Club has issued 117,412 loans for $ 1,512,560,075, while Prosper Marketplace has issued 63,023 loans for $ 433,570,651. With more than 100% year-on-year growth, peer-to-peer loans are one of the fastest growing investments. Interest rates range from 5.6% -35.8%, depending on the loan term and the borrower's rating. The default rate varies from about 1.5% to 10% for more risky borrowers. Executives from traditional financial institutions joining peer-to-peer companies as board members, lenders and investors, show that the new financing model builds itself in the mainstream.

China

In recent years a large number of micro-lending companies have emerged to serve 40 million SMEs, many of whom receive inadequate financing from state-owned banks, create entire industries running alongside major banks.

As the Internet and e-commerce began to flourish in the country in the 2000s, many P2P lenders sprang up with various target customers and business models.

The first P2PL in Hong Kong is WeLab, which is supported by American venture capital firms, Sequoia Capital and Tom Group Li Ka-shing.

Ezubao, a website launched by Yucheng Group in July 2014 which claims to offer P2P services, was closed in February 2016 by authorities describing it as a Ponzi scheme. Since 900,000 customers have invested 50 billion renminbi in Ezubao, the closure may have undermined P2P trust in China.

In China, by 2016 there are more than 4000 P2P lending platforms in total, but 2000 of them have ceased operations. As of August 2016, cash flow on all P2P lending platforms has exceeded 191 billion Yuan China (29 billion USD) in a month. The leverage return on all P2P lending platforms in China averages around 10% per year, with some offering more than 24% rate of return. The daily term for P2P loans in Mandarin is translated as "gray market", but should not be confused with the gray market for goods or underground economy.

Australia

In 2012, Australia's first peer to peer loan platform, SocietyOne, was launched. Until June 2016, the Australian Government has encouraged the development of FinTech and peer to peer lending startup through the 'regulatory sandbox' program.

New Zealand

In New Zealand, peer-to-peer loans became practical on April 1, 2014, when the relevant provisions of the 2013 Financial Market Behavior Act came into force. This law allows peer-to-peer loan services to be granted licenses.

The Financial Markets Authority issued its first peer-to-peer lending service license on July 8, 2014, to Harmoney. Harmoney officially launched its service on October 10, 2014. Squirrel money followed about a year later, launched in November 2015.

India

In India, peer-to-peer lending is not currently regulated. The Reserve Bank of India, the Central Bank of India, has published a consultation paper on P2P loan regulations and final guidance is expected soon. The RBI has arranged that all registered NBFCs must have net funds of not less than 2 crores. This is necessary to encourage industry credibility. There are more than 30 peer-to-peer-lending platforms in India by 2016. Even with the first mover advantage many sites are not able to grab market share and grow their user base, arguably because of the nature of Indian investors or a lack of awareness of the type of debt financing this. However, the peer-to-peer lending platform in India helps most borrowers who have previously been denied or failed to qualify for a bank loan. Peer to peer lending has helped consumers who do not have bad credit or get loans in categories such as consumer loans, small business loans and property loans. Once regulation by the Reserve Bank of India begins, the peer to peer lending industry in India is expected to grow.

Swedish

Peer-to-peer-lending in Sweden is governed by Finansinspektionen. Launched in 2007, Trustbuddy AB company first came out on the Swedish market for peer-to-peer loans, providing a platform for high-risk personal loans between 500SEK and 10,000SEK. Trustbuddy filed for bankruptcy in October 2015, a new board citing offense by outgoing leadership.

Israel

Some peer-to-peer lending services start operations and origination loans during 2014, Following the 2011 economic uprising, and public opinion about this platform is positive. The maximum interest rate in the P2P Arena Israel is limited by "Extra Bank Loan Regulations".

Canada

Peer-to-Peer P2P Lending for real-estate transactions-guaranteed and non-real estate-secured by investors or borrowers, is a mature industry in Canada. Peer-to-Peer P2P Loans in real estate secured transactions are governed by multiple jurisdictions of the Canadian Mortgage Brokerage Regulator Board (MBRCC). Beginning as early as April 09, 2005 PrivateLender.org: The Canadian Personal Loan Network is irrefutable [the word "undisputed" is defined by law, in accordance with the Canadian Trademark-Trade Act, R.S.C., 1985, c. T-13)] is recognized by the public records of the Canadian federal government as Canada's first network devoted to peer-to-peer P2P loans in both regulated (real-estate guaranteed) mortgages and non-regulated (non-real-estate secured). Evidence of federal recognition, registration and "first use date as of April 09, 2005" is found at the Canadian Intellectual Property Office (CIPO). From the outset, individual members and organizations using PrivateLender.org: Canada® Private Lending Network platforms are constantly registered with federal or federal mortgage securities regulators including (but not limited to): some members of the Canadian Mortgage Board's Legal Attorney's jurisdiction (MBRCC) ). PrivateLender.org: Canada 's Private Lending NetworkÃ, has a further distinction as the world' s first peer - to - peer P2P network and only with ongoing registration to ISO 9001: 2015 since 9 May 2008. ISO 9001: 2015 is published by the International Organization for Standardization and National Standards for Quality Management Systems in 119 countries and registrations to provide legislators, regulators, customers, prospects and other interested parties at a glance "are confident that their products are safe, reliable and of good quality." The Canadian Capital Markets Securities Regulator (a member of the Canadian Securities Administrators) is a newcomer to Peer-to-Peer P2P Lending Canada and only issued a temporary "... approval... to test their products, services and applications across the Canadian market at a limited time. through the "Regulatory Sandbox" program including the CSA Regulatory Sandbox and Ontario Securities Commission Sandbox, branded as "OSC Launchpad".

Brazil

In Brazil, the lack of credit scenarios and rate hikes are starting to make room for the lending market on the internet.

To operate in this country, these companies must comply with certain rules of the domestic financial market. While in most countries, peer-to-peer lending operations are conducted without intermediate financial institutions, in Brazil that are not possible. To stick to the rules, the platform must act as a correspondent bank, helping to arrange the loans achieved, in fact, by partner banks.

Latvian

In Latvia, the peer-to-peer lending market is divided by two platforms, Mintos and TWINO, both established in 2015. In the first three quarters of 2016, both platforms show the highest growth rates among peer-to-peer lending platforms on the Continent. As a result, Latvia ranks third in the peer-to-peer consumer credit market volume on the Continent of Europe with EUR 107.3 million funded through a Latvia-based peer-to-peer platform in the first three quarters of 2016.

When Mintos entered the market, they decided to offer secured loans. Until then, this has not been done on a large scale in the p2p lending market. And Mintos, therefore, creates a nice new addition to this loan. 100% Buyback guarantee secured loan will make you an investor, interest less than unsecured loan, but will greatly reduce your risk because Mintos will repurchase loan whenever borrower repay its payment obligation for 60 days or more.

In 2015, Latvia's Ministry of Finance initiated the development of new regulations on peer-to-peer lending in Latvia to establish regulatory requirements, such as rules for compliance management, AML requirements and other prudent measures.

ireland

The first and largest P2P loan platform in Ireland is Linked Finance. Launched in 2013, the online market connects Irish businesses that need loans with the largest online lending community in Ireland. In 2016, Linked Finance is also authorized to operate in the UK by the Financial Conduct Authority.

In 2017, Linked Finance completed the 1000th loan and appointed a new Chairman, former Vice CEO of Ryanair, Michael Cawley. After this, the company also increased its equity investment by EUR2 million to support its expansion plans.

Other platforms in Ireland include Grid Finance and Flender. Grid Finance launched in 2014 and Flender launched in 2017, both focusing on improving funding for SMEs. The flender made headlines when they crowdfunded EUR573,000 for a 10% stake in the company. Flender is also allowed to operate in the UK market by FCA.

Linked Finance publishes key market metrics on its website and, since February 2018, is the only Irish platform listed in P2P International P2P P2P International Loan

Indonesia

In Indonesia, P2P loans have grown rapidly in recent years and are regulated under OJK since 2016. By December 2017, there are 22 P2P platforms listed on OJK. The P2P platform provides loans in special targeting into a population without bank accounts, estimated at around 100 million in Indonesia.

Bulgarian

There are no specific Peer-to-Peer loan terms in Bulgaria. Currently, Klear is the only Bulgarian platform. Launched in 2016 and provides personal loans to major customers. The Peer-to-Peer loan platform is operated by Klear Lending AD, a financial institution listed on the Register per art. 3a Law of Credit Institution run by Bulgarian National Bank.

Korean

In Korea, the Money Auction and Initial Funding were the first peer-to-peer lending companies established in 2006 and 2007 respectively. The Korean P2P loan industry did not attract much public attention until late 2014 and early 2015, during which period a number of newly established fintech companies supported by global fintech waves with the emergence of Lending Club as the main P2P borrowers in the US. New P2P loan companies launched in Korea during this period include 8 Percent, Terafunding, Lendit, Dana Jujur and Funda. At first, 8 Percent, Lendit and Dana Jujur focused on the origination of personal loans and Terafunding is the only P2P platform dedicated to the origination of supported real estate loans, established by former broker and real estate investor, Tae Young Yang.

There is a short period of regulatory uncertainty on the P2P business model as the P2P loan model is not formally endorsed under the later regulatory regime. 8 percent was briefly closed by regulators in February 2015 and reopened again. The Korean P2P industry sees explosive growth in a year. According to regulators, the loan cumulative P2P loan platform increased to KRW 311.8 billion in December 2016 from KRW 72.4 billion in March and there is debate as to whether the industry is overheating, with the question of whether the industry offers appropriate investor protection. In response to this problem, in February 2017, Korean regulators imposed an annual investment limit of KRW 10,000,000 for retail investors on this lending platform, and KRW 40,000,000 for certain qualified investors.

As of April 2017, there are 148 P2P borrowing companies in Korea. However, only 40 companies are the official members of the Korean P2P Finance Association. These members include Lendit, Roof Financing, Midrate, HF Honest Fund, Villy, 8 Percent, Terafunding, Co-financing and People Funding. According to the Korea P2P Finance Association, the cumulative loan lent by its members, the P2P company, stands at c. KRW 2.3 TRN as of March 2018. Under the origination category, origination financing of real estate projects is c. KRW 768,500,000,000, the origination supported real estate assets is KRW 611,500,000,000, other assets are supported KRW 472,400,000,000 and the origination of personal loans stands at KRW 443.2 billion. Average interest yield offered by member companies is 14.32%.

In Korea, Terafunding is a market leader by volume with a cumulative loan of KRW 323Bn originating until March 2018 and Terafunding is the first peer to peer lending platform to launch retail-linked P2P funds in partnership with Korea's retail banks Industrial Bank of Korea and Kyongnam Bank.

P2P Company ' Number of Cumulative Loan Originations as of March 2018

1, Ã, Ã, Ã, Ã, Ã, Ã, Ã, Ã, Ã, Ã, Ã, Ã, Ã, KRW 323 Bn

2 Ã, Ã, Roof Funding Ã, KRW 184 Bn

3  · People Fund  KRW 178 Bn

4 Ã, Ã, Together Funded KRW 142 Billion

5, Ã, Ã, Ã, Ã, Ã, Ã, Ã, Ã, Ã, Ã, Ã, Ã, Â, KRW 136 Bn

(As Published by Korea P2P Finance Association)

src: fintechnews.sg

Legal rule

In many countries, requesting investment from the general public is considered illegal. The setting of the source of the crowds in which people are asked to donate money in exchange for a potential profit based on the work of others is considered securities.

Dealing with financial securities related to ownership issues: in the case of a person-to-person loan, the problem of who owns the loan (note) and how the ownership is transferred between the lenders to the individual lenders and the individual lenders ). This question arises especially when peer-to-peer lending companies not only connect lenders and borrowers but also borrow money from users and then lend it again. The activity is defined as a sale of securities, and a broker-dealer license and a person-to-person investment contract registration are required for the process to become legal. License and registration may be obtained at securities regulatory agencies such as the US Securities and Exchange Commission (SEC) in the US, the Ontario Security Commission in Ontario, Canada, the author of the AutoritÃÆ'Â © des MarchÃÆ' © s in France and QuÃÆ'Â ©, Canada, or the Authority Financial Services in the UK.

Securities offered by US inter-state lenders are registered and regulated by the SEC. A recent report by the US Government Accountability Office explored the potential for supplemental regulatory oversight by the Consumer Financial Protection Bureau or the Federal Deposit Insurance Corporation, although no organization proposes direct supervision of peer-to-peer lending at present. In 2016, New York state sent a "warning letter" threatening to ask 28 peer-to-peer lenders for a license to operate unless they "promptly" responded to the demand for disclosure of their lending practices and products available in the state.

In the UK, the emergence of several competing lending companies and problems with subprime lending has resulted in calls for additional legislative measures that institutionalize minimum capital standards and checks on risk controls to deter loans to risky borrowers, use unscrupulous lenders or mislead consumers about the requirements loans.

src: creditshorecoop.com

Advantages and criticism

Interest rate

One of the main advantages of person-to-person loans to borrowers can sometimes be better than the traditional bank rates that can be offered. Profits for lenders can be higher than those earned from savings accounts or other investments, but depend on the risk of loss, unlike a savings account. Interest rates and methodologies for calculating such rates vary among peer-to-peer lending platforms. Interest rates may also have lower volatility than other types of investments.

Socially conscious investment

For investors interested in socially conscious investments, peer-to-peer loans offer the possibility of supporting individual efforts to free themselves from high-level debt, helping people engaged in work or activities that are considered moral and positive for society, and avoiding investing in people who are employed in industries deemed immoral or harmful to society.

Credit risk

Peer-to-peer lending also attracts borrowers who, due to their credit status or lack thereof, are not eligible for a traditional bank loan. Because past behavior often indicates future performance and low credit scores are correlated with most likely default, peer-to-peer intermediaries have begun to reject a large number of applicants and impose higher interest rates on approved borrowers at risk. Some brokerage firms also institute funds in which each borrower contributes and from which the lender is compensated if the borrower can not repay the loan.

It appears initially that one of the characteristics of attracting peer-to-peer lending to investors is a low default rate, for example Prosper's default rate is quoted only about 2.7 percent in 2007.

The actual default rate for loans originating from Prosper in 2007 was higher than projected. The return of aggregate earnings (on all credit scores and as measured by LendStats.com, based on actual Prosper market data) for vintage 2007 is (6.44)%, for vintage 2008 (2.44)%, and for vintage 2009 8, 10%. Independent projections for the 2010 model year are the aggregate yield of 9.87. During the period from 2006 to October 2008 (referred to as 'Prosper 1.0'), Prosper released 28,936 loans, all of which were due. 18.480 of the loan was repaid and 10,456 loans failed, default rate of 36.1%. $ 46,671,123 of the $ 178,560,222 lent during this period was abolished by investors, a loss rate of 26.1%.

From the beginning, Lending Club's default rates range from 1.4% on top three-year loans to 9.8% for the most risky loans.

The UK peer-to-peer lender cited a non-performing loan ratio of 0.84% ​​for Zopa of  £ 200 million during the first seven years of loan history. As of November 2013, the current level of Funding Circle bad debt is 1.5%, with a 5.8% profit after all debt and bad fees. This is proportional to the 3-5% ratio of mainstream banks and the results of modern credit models and efficient risk management technologies used by P2P companies.

At the other end of the range are places like Bondora which lend to less creditworthy customers, with default rates varying to as high as 70% for loans given to Slovak borrowers on the platform, far above the original Estonian Market.

Government protection

Because, unlike depositors in banks, peer-to-peer lenders can choose for themselves whether to lend their money to safer borrowers at lower interest rates or to higher-risk borrowers with higher returns, in the US peer-to-peer lending is treated legally as an investment and payments in case of unsuccessful borrowers are not guaranteed by the federal government (Federal Deposit Insurance Corporation AS) such as bank deposits.

A class action suit, Hellum v. Prosper Marketplace, Inc. was held at the California High Court on behalf of all investors who purchased the record on the Prosper platform between 1 January 2006 and 14 October 2008. The plaintiff alleges that Prosper offers and sells unqualified and unregistered securities that violate federal and federal securities laws during that period. The plaintiff further alleges that Prosper is acting as an unlicensed broker/agent in California. The Plaintiffs sought the cancellation of loan records, rescissory compensation, damages, and attorney's fees and expenses. On July 19, 2013 a class action lawsuit was finalized. Under the terms of settlement, Prosper will pay $ 10 million to members of the class action.

List of peer-to-peer loan sponsors

Inter-group lending sponsors are organizations that handle loan administration on behalf of others including individual lenders and lending agencies, but do not lend their own money.

• Kiva (organization)
• Lendforpeace
• Lendwithcare
• Microplace (off)
• Crazy
• MYC4
• United Prosperity (organization) (dead)
• Vittana (dead)
• Wokai (dead)
• Zidisha

src: jeffrose-wpengine.netdna-ssl.com

See also

• Alternative finance
• Alternative financial services
• BondMason
• Comparison of the crowd funding service
• Customers to subscribers
• List of microfinance sponsors
• Non-bank financial institution
• Peer-to-peer banking
• Peer-to-peer borrower

src: nycdatascience.com

References

Source of the article : Wikipedia