Peer-to-peer lending opens capital access to start ups, but at a risk—David Storey, ADBI analyst

Summary: Peer-to-peer lending is an emerging form of finance enabled by the Internet, matching investors with borrowers to get around rigid bank requirements faced by small and medium-sized enterprises—SMEs—and start-ups. Borrowers apply to a peer-to-peer—P2P—platform of investors. The platform assesses the borrower’s credit risk and gives a credit score based on the platform’s own credit rating model. Investors then split up their money and lend it to borrowers, usually depending on the maturity of the loan and the risk entailed. Read the transcript http://bit.ly/2xL5QyY About the speaker David Storey was an analyst at the Asian Development Bank Institute at the time he presented his research. He is pursuing further studies at Warwick University, UK. Know more about ADBI’s research on SMEs http://bit.ly/2kVLk8U