Introduction to P2P Lending, its opportunities and risks, known platforms and the influence of COVID-19.
Inhaltsverzeichnis (Table of Contents)
- What is P2P-Lending?
- Chances for investors
- Risks for investors
- Platforms
- Impact of COVID-19
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This text provides an overview of Peer-to-Peer-Lending (P2P-Lending), outlining its workings, the advantages and risks for investors, and the impact of the COVID-19 pandemic on the industry.
- The principles of P2P-Lending and its differences from traditional banking
- Potential benefits of investing in P2P-Lending, including higher returns and diversification possibilities
- Risks associated with P2P-Lending, such as default risk, liquidity risk, and platform-related risks
- The influence of the COVID-19 pandemic on P2P-Lending platforms and the implications for investors
- The importance of risk assessment and careful selection of platforms and loans in P2P-Lending
Zusammenfassung der Kapitel (Chapter Summaries)
- What is P2P-Lending? This chapter introduces the concept of P2P-Lending, comparing it to traditional banking models. It highlights the role of digital platforms in connecting borrowers and investors, and the associated risk and potential higher returns for investors.
- Chances for investors This chapter examines the potential advantages of investing in P2P-Lending, including higher interest rates compared to traditional savings accounts, diversification opportunities, and low investment thresholds.
- Risks for investors This section explores the risks associated with P2P-Lending, including default risk, liquidity risk, and platform-related risks. It emphasizes the need for careful assessment and awareness of these risks.
- Platforms This chapter provides an overview of popular P2P platforms in Europe, comparing their average returns, loan types, loan periods, minimum investment amounts, and offered protection mechanisms.
- Impact of COVID-19 This chapter analyzes the impact of the COVID-19 pandemic on the P2P-Lending industry, highlighting the challenges faced by platforms and investors, as well as potential future implications.
Schlüsselwörter (Keywords)
The main keywords and focus topics of this text include: Peer-to-Peer-Lending (P2P-Lending), digital platforms, investors, borrowers, default risk, liquidity risk, platform-related risks, COVID-19, diversification, risk assessment, buyback guarantee, return on investment, and passive income.
Frequently Asked Questions
What is P2P Lending?
Peer-to-Peer (P2P) Lending involves digital platforms that connect individual borrowers directly with investors, bypassing traditional banks.
What are the main advantages for P2P investors?
Investors can benefit from higher interest rates compared to traditional savings, low investment thresholds, and the ability to diversify their portfolio.
What risks are associated with P2P Lending?
Key risks include default risk (borrower doesn't pay back), liquidity risk (difficulty in selling the investment), and platform risk (the platform itself failing).
How did COVID-19 impact P2P platforms?
The pandemic caused challenges such as increased default rates and liquidity issues, forcing many platforms to adjust their protection mechanisms.
What is a buyback guarantee in P2P lending?
It is a protection mechanism where the platform or loan originator agrees to buy back a loan from the investor if the borrower defaults for a certain period.
- Arbeit zitieren
- Anonym (Autor:in), 2021, Economical Factors of P2P-Lending, München, GRIN Verlag, https://www.grin.com/document/1002924
