Peer-to-peer lending has eight advantages:
1, information processing and risk assessment through networking;
2. The term and quantity of capital supply and demand match, and the supply and demand sides do not need to trade directly through intermediaries such as banks or brokers;
3. The unification of super centralized payment system and personal mobile payment;
4, the product is simplified and the operation is simple;
5. The financial market is completely Internet-based, and the transaction cost is extremely low.
6. The annual compound income is high.
The annual interest rate of deposits in ordinary banks is only 3%, and wealth management products and trust investments are generally below 10%, which is incomparable with the annual interest rate of online loan products above 20%.
7, simple operation
The authentication, bookkeeping, clearing and delivery of online loans are all completed through the network, and both borrowers and lenders can achieve the purpose of lending without leaving home. Generally, the amount is not high and there is no mortgage. It is convenient for both borrowers and borrowers.
8. Develop thinking
Online lending has promoted the interaction between industry and finance, changed the observation horizon, thinking context, credit culture and development strategy of loan companies, and broken the original lending situation.
Peer-to-peer lending has four disadvantages:
1, unsecured, high interest rate, high risk.
Compared with the traditional loan method, online loan is completely. Moreover, the central bank has repeatedly made it clear that the annual compound interest rate exceeds 4 times the bank interest rate and is not protected by law. It also increases the high risk of online lending (generally 7 times or even higher than the bank interest rate).
2. Credit risk
The inherent capital of online lending platform is small, so it can't undertake large amount of guarantee. Once there is a large loan problem, it is difficult to solve it. Moreover, some borrowers also make loans for the purpose of fraudulent loans, while the founders of the loan platform have some ulterior motives, and cases of absconding with money also occur frequently.
3. Lack of effective supervision means.
Because online lending is a new financing method, the central bank and the China Banking Regulatory Commission have no clear laws and regulations to guide online lending. For online loans, the regulatory authorities are mainly neutral, do not violate the rules, and do not recognize them. However, with the prevalence of online lending, it is believed that relevant measures will be formulated and implemented in time.
Extended data
P2P is the abbreviation of English person-to-person (or peer-to-peer), which means partner-to-partner. Also known as Peer-to-Peer peer-to-peer lending, it is a private micro-lending model, which gathers small amounts of funds and lends them to people who need them. It belongs to a product of Internet Finance (ITFIN). It belongs to private microfinance, an online credit platform built with the help of Internet and mobile Internet technology, and related financial management behaviors and services.
In the case of imperfect supervision, information opacity has always been one of the important reasons for the P2P platform to run away. The information between investors and the platform is not commensurate, which makes it impossible for users to judge the authenticity of the project and the operation of the platform. Finally, the crisis happened.
P2P faces a heavy blow in 20 17 years. On August 25th this year, China Banking Regulatory Commission (CBRC) issued the "Guidelines for Information Disclosure of Peer-to-Peer Lending Activities by Information Intermediaries", which comprehensively defined all kinds of information, disclosure time, disclosure frequency and disclosure objects that should be disclosed by online lending platforms for the first time, and unified some controversial concepts. Whether information disclosure is transparent or not is related to the safety of investors' funds and the future development of the platform.