For years, Filipinos only have a few options when it comes to where and how to borrow and invest their money. And it is in the Filipino nature to be extremely careful with handling anything about money. This cautiousness has even affected how some people approach financial education.
To allay the fears of some when it comes to finances and lending, a new loan method has arrived in the country which promises to be safe, effective, and convenient for any type of customer.
First to be introduced and gained traction in the United States and Europe, this method called peer-to-peer or ‘person-to-person’ (P2P) lending paves the way to democratize the lending while keeping it credible and very secure.
P2P lending is accessible to everyone. The innovative method opens opportunities to the public to be either a lender or borrower under varying terms.
“The peer-to-peer lending is a an exciting alternative to try as it provides more chances of financial growth and stability and in turn, can result to a full-blown progress in our economy. Everyone wins because each one can participate and receive their own return of investment or loan in the simplest means possible,” Jay Bautista, Executive of FinTech Global Resources said in a statement.
There are less requirements needed compared to the traditional money-lending process. What attracts the borrowers are the low interest rates and the minimal requirements, while the convenience and safety attracts the lenders.
Borrowers who are predicted to be mostly millennials on the other hand, may now be able to invest wisely on more important things – and possibly even start new Micro, Small or Medium Enterprises (MSMEs) easily.
On the other hand, this new financial development gives opportunities for first-time investors and those interested to venture in the business to earn more money with the help of a P2P platform.
Credible financial institutions like banks require a long time to process and numerous documents just to have a loan approved. This is where P2P lending beats its more traditional predecessor, with a more accessible and simpler process employed, P2P allows more people to why the new platform P2P has been creating a buzz worldwide.
Of course, banks and other financial institutions will always be essential to any society, but it is a welcome growth that alternatives like the P2P lending method is available to give Filipinos more options.