The Beginning Of Financial Services Disruption

When it comes to finances, we have been relying greatly on banks for how many years simply because these institutions offer firm security on our savings and investments aside from getting financial returns on the cash that we put up.

But with the continuous rise of the peer to peer lending firms, more and more individuals are becoming interested in putting their cash and lend it out to business owners.

Easier Approval

Recently, P2P lending platforms are becoming more popular amongst borrowers and investors. For the borrowers, they are more confident in borrowing through P2P lending platforms since they provide a quicker process for cash loans compared to that of a bank. With certain online platforms, a borrower can obtain a loan or be approved for a loan in just a couple of minutes and can be funded within one to three weeks. Whereas obtaining a loan from a bank may take longer, depending on how compelling your pitch is and how transparent your documents are.

Easy access though the web. The spread of web technologies makes it easy for individuals or groups to work together online. In the case of peer to peer lending, borrowers are able to access their accounts anytime and anywhere using the mobile web application. With this, it will not be a hassle for them to check on their account balance and loan status. However, this alone is not enough to disrupt the normal retail banking figure.

Fewer Constraints

Borrowers have fewer constraints when they apply for a loan through peer-to-peer lending platforms. In P2P lending, borrowers explain their reasons for getting a fund and lenders can determine whether they want to invest. Having a strong regulatory framework, banks can have restrictions on how the money can be spent. In P2P lending, some of the peer-to-peer lenders do not impose penalties on borrowers who use the funds for debt consolidation.

Fewer fees

Borrowers are charged with several fees (application fee, processing fee, etc.) when they get to apply for a loan with a bank. But when applying for a loan through a P2P lending platform, which means cutting out the middle man, they will not need to pay for those fees. So this turns out to be a big advantage for the borrowers. Aside from that, investors can also gain benefits when they put their cash in peer to peer lending since the platform allows them to obtain higher returns for their investments. Because higher return comes with riskier loans, investors are able to diversify the loans in which they invest.

The combination of those disruptive waves ought to have a negative impact on the phase of traditional banking. Banks should get anxious as the financial services disruptions begin.

Stratosphere Peer To Peer Lending

Though we provide an online resource for our services, applying to be either an approved borrower or lender requires more than a few minutes (as some of the online platforms provide) and this is handled personally with face to face conferencing which is part of our USP business model.

We need to know both potential borrowers and lenders first before we engage in any financial product with them. Because our niche product is secured lending for property and general business finance, we take a more pro-active role on both sides and not just facilitate the deal – again, one of our USP’s!

To know more about us, please review this website and make sure you check out our terms and conditions as well as taking the time to study the ‘frequently asked questions’.