Peer-to-peer (“P2P”) and peer-to-business (“P2B”) platforms have changed the dynamics in the credit markets. They have become more appealing and useful to the public. In addition, they have become increasingly attractive to investors, who are either looking to invest in P2P and P2B companies themselves, or to utilise borrower-lender matchmaking services offered in these platforms. However, as access to credit becomes progressively effortless thanks to these platforms, market failures surface. Given the significance P2P and P2B platforms have gained in the corporate credit market, we examine whether it possible to mitigate these market failures.
This is a somewhat different type of Market Insight than you are used to. Rather than analysing a market development, we share with you some of our conclusions from the borrower and investor feedback we received in relation to our Project Finance Monitoring Advisory business. We examine why maintaining a transparent, efficient and effective reporting and decision-making framework is increasingly seen to be fundamental to balancing the needs of investors and borrowers.