What is Marketplace Lending ?

Marketplace lending, also known as peer-to-peer and crowd-lending is experiencing a renaissance. Many websites that act as financial match-makers are once again fulfilling a need for capital and higher...

Vidur Jain 10th November 2014

Marketplace lending, also known as peer-to-peer and crowd-lending is experiencing a renaissance. Many websites that act as financial match-makers are once again fulfilling a need for capital and higher investment returns left behind by traditional banks.



With direct lending from investor to borrower, the transaction is a lot more efficient resulting in savings for both parties involved. This has resulted in a model which has huge potential for scalability and that lenders are moving more and more towards this.



How it works



The most common work-flow for marketplace lending platforms so far has been the following:



Above is a simplified view of the steps behind a typical marketplace lending platform, each platform will have their own methodology at each step to ensure a better borrower experience and lower risk for lenders. This also represents the most basic form of marketplace lending where one individual lends to another. With the popularity that such platforms have seen we are seeing new models and products entering the market, and we will be exploring those in our next post.



Bazaar | Cloud based Platform For Marketplace Lending Companies



Cloud Lending’s Marketplace platform, offers a cloud based solution built 100% natively on the SaleForce.com platform specifically to handle the complexities of managing the entire loan cycle and multiple investor portfolios. This means platforms don’t have to worry about setting up the back-office operations from scratch and can spend more time innovating lending.

Resources

NEWS

Cloud Lending Solutions Expands Leadership Team with New Executive Hires

Cloud Lending Solutions adds Chief Revenue Officer and Chief Financial Officer as the Company Focuses...

DigitalLEND Connects Borrowers and Lenders Through Rapid Deployment-Ready Customizable Solution

Cloud Lending Solutions, Crowdnetic and eOriginal Partner to Offer Turn-Key Solution to Solve Traditional Lending...

BLOGS

Regtech Meets Fintech – How It Improves Lending?

Lending as an industry is prone to risks and frauds. The added weight of growing ...

Opti-channel banking – way forward for better customer engagements

With an upsurge in technological innovation and the rise of digitally equipped millennials, banking and ...

EVENTS

DLAI FinTech Conference – 2018

India's Largest Fintech Conference Keynote Sessions 1. Consumer Lending - The Emerging Frontiers 2. SME ...

NEFA Finance Summit 2018 (Conference)

The National Equipment Finance Association (NEFA) is a national association serving small- to mid-size independent ...