The Effects of Peer To Peer Lending on Global Financial Development and the UK in Particular
As leading online Peer to Peer lending platforms grows in popularity, researchers are keen to understand the factors that drive people to borrow and invest through these channels. A new study by economists at the Federal Reserve Bank of Cleveland proves the link between financial development and P2P lending is worth analyzing. The results of our post may surprise you! Web-based P2P lending is a financial technology (fintech) service also called social lending or debt-oriented crowdfunding. It is a financial methodology in which investors and borrowers perform transactions directly without the involvement of middlemen like banks or financial institutions. Peer to Peer lendin g UK became a standard strategy in innovative financial solutions for the consumers and companies in the time proceeding from the worldwide economic decline. It is a time-length known for its cash crunch, reducing liquidity, decrease in trade credit with the bank’s lack of ability, and adaptation of s...