Page 44 - Banking Finance JANUARY 2017

ARTICLE

P2P:

DIVERSIFYING

THE FINANCIAL

SECTOR IN

INDIA

O ver the decades, the financial sector has under- develop such a framework that enables a customer to ful-
gone complete makeover and added new
fill his financial need at appropriate cost within standard
stipulated time frame.
colours on its canvas as a result of
industrialisation and later due to globalisation.
In this journey technology has been the major driver in for- Peer to peer (P2P) lending, has gathered momentum
mulating new products, catering users their needs and across the globe and slowly mushrooming in India. It is a
enabling them to aspire for more customized services at platform which provides online access through network to
their doorstep. borrower and lender and enables them to match their re-
quirement by striking a deal. At market place, customer as
Since beginning, borrowing and lending has been the build- borrower always seeks hassle-free funds at low cost and at
ing block in economic development and attracted borrow- the same time as a lender he aspire for high yield on his
ers for raising funds at better cost and lenders for earning parked funds at calculated risk.
attractive yield in market place. Regulators ever tried to
P2P portal invites bids from investors to lock-in their funds
for expected yield and simultaneously invites bids from bor-
About the author
rower for their funding requirement against the interest
rates charged for the respective period. This model is big
Praveen Kumar Srivastava threat to conventional banking system since it challenges
to replace the available banking channel in economy and
M.Com, PGDM (Marketing), CAIIB
Senior Manager (Financial Analyst) bridge the gap between lender and borrower by offering
Dena Bank them real time access through network along with added
features like Credit scoring of customers, Customers KYC

44 | 2017 | JANUARY | BANKING FINANCE

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