admin Jul 21, 2017
Crowdlending also called peer-to-peer lending is a relatively new form of lending. Peer-to-peer is originally an IT term and describes a communication model in which each party has the same rights and opportunities. Above all, peer-to-peer applications such as Napster and Gnutella are known, which allow the members to access each other directly on certain data.
The term peer comes from the English language and means equals or equals. This has been implemented in financial peer-to-peer models, such as Crowdlending. In its original form, a platform provides a loan between the lender and the borrower without being a credit party. The parties are equal and the lender receives the installments from the debtor with interest via the Crowdlending platform. There is usually a 1 to 1 relationship between the borrower and the lenders. Several lenders (the so-called crowd) finance a loan, which in turn is paid out to the debtor. The platform acts merely as administrator and as paying agent and receives a commission for this. The model does not provide for the creation of the loan agreement any bank or a conventional credit institution. Since such conventional providers live with the loans mainly with the interest differential business, so cheap finance and borrow expensive money, the interest rates are usually relatively poor for both parties with such providers. Since the Crowdlending business is financed solely by platform fees, the terms are more favorable for both credit partners than for a conventional provider. In this model, the bank only has the role of the account-holding institution through which the cash flows are settled.
In Switzerland Crowdlending is still in its infancy. Due to the many advantages, this is in our view a model in which a second look is worthwhile. Find more information on our page.
