F-Prime Capital - State of Fintech 2024
Wharton FinTech Podcast
00:00
Peer-to-Peer Lending: A Shift from Community to Institutional Funding
Peer-to-peer lending initially aimed to disrupt traditional banking by connecting consumers directly, offering retail investors a chance to fund personal loans. This model thrived with platforms like Lending Club, which started with 80% of funding from retail investors. However, over time, this dynamic shifted significantly towards institutional funding, dropping to 20% from retail sources. This transition undermined the original intent of creating a two-sided marketplace between consumers, illustrating the complexities and challenges within the FinTech industry.
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