Podcasts Government Asia's Developing Future Peer-to-peer lending opens capital access to start ups, but at a riskDavid Storey, ADBI analyst

Peer-to-peer lending opens capital access to start ups, but at a riskDavid Storey, ADBI analyst

Published: Oct. 17, 2017, 9:11 a.m.

b'Peer-to-peer lending is an emerging form of finance enabled by the Internet, matching investors with borrowers to get around rigid bank requirements faced by small and medium-sized enterprises\\u2014SMEs\\u2014and start-ups. \\n\\nBorrowers apply to a peer-to-peer\\u2014P2P\\u2014platform of investors. The platform assesses the borrower\\u2019s credit risk and gives a credit score based on the platform\\u2019s own credit rating model. Investors then split up their money and lend it to borrowers, usually depending on the maturity of the loan and the risk entailed.\\n\\nRead the transcript\\nhttp://bit.ly/2xL5QyY\\n\\nAbout the speaker\\nDavid Storey was an analyst at the Asian Development Bank Institute at the time he presented his research. He is pursuing further studies at Warwick University, UK.\\n\\nKnow more about ADBI\\u2019s research on SMEs\\nhttp://bit.ly/2kVLk8U'