P2P-based internet banking

With the help of the Internet, P2P (individual-to-individual) financing models have been successful in foreign countries in recent years, and many P2P financing platforms with "mutual online lending" have also been born. For example, the non-profit Kiva of Professor Yunus, who has won the Nobel Prize and known as the "Banker of the poor", and the commercial nature of Prosper in the United States and Zopa in the United Kingdom.

The concept of "P2P finance" is indeed innovative, but it is obvious that it is also a relatively difficult operation model. Operators must not only face the strict control of national government laws, but also the platform attributes of the Internet have virtually increased their risks. Therefore, the winners in this field must have their own tricks. Today, we will introduce two typical P2P financial network services cases:

1. Zopa (www.zopa.com)

 

Zopa was founded in March 2005. Zopa's special feature is to use a strict set of formulas to calculate the habit of using money and the possibility of paying back the money, and divide the loan into many portions to spread risks. The borrower must receive A credit investigation and risk assessment from Zopa. The borrower will also receive different ratings from A to C based on the repayment risk.

The lender can propose the desired interest rate, the person willing to lend a credit grade, and the term of the loan. Zopa then splits the money they provide into many small loans and distributes them to different borrowers. Each loan of more than £ 500 will be distributed to at least 50 borrowers, and each borrower cannot borrow a second money from the same person. As for the amount that has not been credited, the lender can still receive 4.5% interest. When a loan is successfully released, Zopa, as the entire transaction platform, will earn 0.5% of the profit.

As of the beginning of last year, Zopa had nearly 0.3 million members. It was revealed that the annual average rate of return for each lender was 6.8%. About 1% of borrowers with A rating of A are in arrears, and about 3% of class C borrowers.

2. Prosper (www.prosper.com)

 

Prosper was launched in February 2006. Its operation model is similar to that of the e-commerce website eBay, but the auction on this platform is "loan amount ". On Prosper, each borrower has a loan ceiling of $25 thousand. Likewise, Prosper will conduct credit surveys and evaluate borrowers. Each auction usually lasts 3-7 days, it can be set by the borrower.

There are thousands of different groups on the Prosper, and the Prosper also encourages borrowers to join these groups and tries to constrain members to pay on time through the force of the group. As long as the members of the group have had a successful repayment record, it is easier for borrowers to attract more lenders to lend at a lower interest rate.

The person who successfully obtained the loan must pay 1-2% of the fee to Prosper when obtaining the payment, the lenders registered on Prosper must pay 0.05-1% of the service fee each year for the amount not paid off by the borrower.

More than a year after its establishment, Prosper completed more than 10 thousand loans, totaling $65 million, of which about 3% (339) were in arrears.