Peer-to-peer lending

Peer-to- peer lending (English peer -to-peer lending or person-to - person lending) are loans directly from individuals ( engl. "peer" ) to individuals as personal loans with substantial or complete elimination of a bank or other traditional financial institution to be granted. See also disintermediation.

Technologically and enables peer-to- peer lending were spread primarily through the Internet. As the first company Zopa has established itself in the UK, a granting of loans on the Internet in 2005. In the U.S. it was 2006, the platform Prosper Marketplace and in Germany eLolly introduced the first online marketplace for this type of loan in 2007.

Basically, online marketplace and Family and Friends, distinctions in the peer-to -peer loans between models. A particular variety is the award of such loans as small loans or micro- loans to entrepreneurs in developing and emerging countries. This is not the profit of the lender, but to support the work of the borrower from charitable foreground subjects ( often referred to as social lending ).

Models

In the marketplace model of peer-to -peer loan on the internet can find private lenders and private borrowers - and vice versa. This model brings borrowers and lenders together through an auction- like process. The marketplace model can contain other intermediates or the sale of a loan, the loan will always end up selling to an individual or a pool of individuals.

The Family and Friends model waives the auction process and concentrates on borrowers and lenders who know each other already. This model is not finding a loan, but the cooperation and support in the formal settlement of the loan in the foreground. Another form of peer-to -peer loan is the crowd lending, in which a group an individual borrows money or individuals of a group.

Models of peer-to -peer loan try the social component of the loan, which is lost in centralized database models to revive. The lender can decide for themselves who they lend money for what purpose how long. Peer-to- peer lending are also building on the theoretical assumption that existing interpersonal relationships or other forms of social bonding improve fiscal responsibility and thus the repayment rate. This effect is also used so-called micro-loans in developing countries advantage.

Worldwide, in 2005 118 million dollars already awarded $ 269 million in 2007 and $ 647 million by means of peer-to -peer loans in 2006. In 2012, the global volume amounted already to approx. 1.5 billion euros. The world's largest by far the peer-to -peer lending marketplace is originating from the U.S. platform Lending Club. Among the top 10 in Europe are based on the current Forbes ranks the following platforms: 1 Zopa ( UK), 2 Etter Council ( UK), 3 Funding Circle ( UK), 4 auxmoney ( Germany ), 5 isePankur (Estonia ), 6 Pret d'Union (France), 7 ThinCats ( UK), 8 Smartika (Italy ), 9 Comunitae (Spain ) 10 Funding Knight ( UK).

On the German market there with auxmoney and smava currently only two platform that provide peer-to- peer lending to a significant extent, with auxmoney now has a much larger monthly loan volume as smava, the erstwhile No. 1 in this country.

Personal loans and micro-finance

Peer-to- peer lending have evolved in the microcredit sector. About some of these platforms loans to institutions, companies and individuals can be given that these do not get with conventional sources such as local banks. These micro loans allow you to alleviate poverty and to support small business owners in developing countries and to guarantee financially for this.

Lending to small entrepreneurs

Kiva was launched in 2005 as the first microcredit platform. About Kiva loans to small business owners can be forgiven. Often this is done through local micro credit institutions. By November 2008, more than 100 of these partner institutions have worked with Kiva.

More microcredit platforms are MYC4 (Denmark), Rang De (India), dhanaX (India) and veecus.com (France).

Legal situation in Germany

The extent of the operation of an internet platform for mediation of peer-to -peer loans to an authorization ( § 32 KWG ) by BaFin subject depends on the actual design of the offer. As confirmed by the BaFin, has permission subject to the mirror every single creditor, the "commercial " lends its money, can users who repeatedly and with the intent to make a profit, loans offering [ s ] a licensing requirement arise, [ d] he platform operators would be involved indirectly in unauthorized transactions and should be prepared for appropriate consequences.

The P2P platforms auxmoney smava and have therefore incorporated banks in the credit intermediation process, which are the actual contracting party between borrowers and lenders. These institutes ( SWK Bank for auxmoney or Fidor Bank for smava ) have the necessary full banking licenses for such transactions.

On 1 December 2013 the companies belonging to Rocket Internet Lendico has also launched its platform. Also Lendico works according to the same model as auxmoney and smava but with a different cost structure and an international business strategy.

Criticism

After particular first came online credit marketplace auxmoney in 2010 in a criticism that the business model has been modified and now there is now rated positively. Stiftung Warentest sees the online loan market places in Germany now as an alternative for individuals to borrow money outside the banking sector can.

Austria

The platform bankless -life has not been approved by the Austrian Financial Market Authority.