The model that is p2PL advantages for customers with regards to convenience.
During the exact same time, P2PL additionally poses major risks to all or any the parties involved вЂ“ that is, customer loan providers, customer borrowers, and platform operators (European Banking Authority 2015a). In our context, the potential risks to consumer lenders and borrowers whom utilize the solutions of a platform deserve special attention. Customer lenders may lose the quantity lent after either the customer borrowerвЂ™s or even the platformвЂ™s standard (European Banking Authority 2015a, pp. 2-14; Macchiavello 2017). They may additionally be unacquainted with such risks, relying on deceptive adverts or unverified information, in specific in regards to the customer debtor along with his or her task. It really is notable that present data reveal a rise in defaults and company problems when you look at the P2PL areas (Zhang et al. 2016a, p. 47; Zhang et al. 2016b, p. 34).Continue reading