28.4.2. Peer-to-Peer (P2P) Lending

Try these first

1. 1.

   What does P2P in P2P lending stand for?

   Hint

   Think about the phrase describing the relationship between lenders and borrowers.

2. 2.

   True or False: In P2P lending, banks play a direct role in the transaction.

   Hint

   Consider who facilitates the borrowing process in P2P lending.

3. 3.

   What type of loans does P2P lending typically involve?

   • Home Loans
   • Personal Loans
   • Commercial Loans

   Hint

   Think about the common type of loan people seek in P2P scenarios.

4. 4.

   In P2P lending, risk-based interest rates are determined by which of the following?

   • True
   • False

   Hint

   Remember how algorithms assess the borrower.

5. 5.

   A new P2P lending platform wishes to attract both lenders and borrowers. Design a strategy that addresses how it will assess the risk of borrowers and communicate this to potential lenders.

   Hint

   Consider how existing platforms handle risk assessment and what systems they have in place.

6. 6.

   Explore the ethical considerations surrounding P2P lending. What responsibilities do platforms have toward borrowers and lenders?

   Hint

   Think about the duties these platforms have to both sides of the transaction.