Online Loans: The Most promising sphere of 2017
One of the increasing trends in the sphere of lending is its increasingly active dissemination in the Internet. We decided to compare how in 2017 the main lines of online lending developed.
P2P-crediting
10 years ago P2P-crediting platforms declared themselves in the market as the main competitors of banks in the sphere of consumer crediting and small business crediting. Their main advantages were speed and simplicity against the complex bureaucratic system of banks.
In 2017, P2P platforms and banks were perceived not as competitors, but as partners. In fact, banks began to act as investors and creditors on P2P-sites, so the perception of the latter has been transformed somewhat, because in this form they can hardly be called platforms of direct interaction between individuals.
The consequence of the new market conditions is likely to be a decrease in interest rates on loans (due to an increase in the capital of platforms), industry leaders will become even more obvious, new players will find it increasingly difficult to compete with them.
POS-crediting
The sphere of POS-crediting continues its rapid development online. This is the crediting of online purchases and the registration of loans at points of sale. The largest players expand their presence by partnering with new e-commerce and offline sites. You can get an online loan not only for goods, but also for a wide range of services, such as insurance or tourism.
The trend (which, obviously, will develop in the years to come) is the creation of its own POS-credit lines by major trading platforms, in particular, marketplaces like AliExpress. The latter view this as both a new and effective business direction, and as an additional convenient service for their customers.
Secure Lending
One of the last online segments of secured lending began to develop actively. Today, the collateral on online sites can be anything: from the goods in the Alibaba base (Philippine project PawnHero) and ending with art objects (the British Borro).
On the one hand, online loans secured by collateral have huge potential as the lowest-risk lending direction. On the other hand, many questions arose from the point of view of the security of this sphere, which were solved by the latest technological advances.
For example, our platform SHIFT.cash specializes in the issuance of loans secured by the car titles. The integrated technology of processing large amounts of data (Big Data) allows you to instantly and accurately assess the collateral (car), analyzing by a special algorithm all available information on the market for a particular region.
Further, the cost of the car is tokenized, that is, it is transferred to the internal currency of the platform, and this information is recorded on the blockchain. So we raise the level of platform security for our investors. From the economic point of view, the invested funds are provided with a real asset. At the technology level — the security of information and all transactions is provided by the blockchain technology.
