The peer-to-peer lending can be used as a solution to the problem of loan shark in Thailand. This type of lending will facilitate financial inclusiveness and the investors from the public will start considering new ways to increase returns from their investments so as not to rely on bank deposits alone. The people should understand that peer to-peer lending is also a safe way of lending and widespread P2P lending will certainly create more opportunities for the Thai public. However, careful dealing is very important. Just because peer-to-peer lending has a lot of advantages people should not take it for granted. There are many stories of success as well as failures in P2P lending also. Those who opt for P2Plending must be well aware of the mistakes that are likely to happen in this venture and should ensure that there is no compromise in their adherence to the very best practices of peer-to-peer lending. There is no doubt that in the year 2020 Thailand will join the group of Asian countries where peer-to-peer lending has been legalized. This is obvious from the recent announcement by Bank of Thailand regarding P2P lending.
Beware of pros and cons
When P2P lending is introduced as a bridge between the investors and borrowers in Thailand it will certainly provide an easier as well as faster mechanism for funds allocation among members of the public without the involvement of banks. When banks are not involved in the process, the procedures will not be cumbersome but rather simplified and time-saving. As a result of the introduction of peer-to-peer lending the borrowers can access the lending agencies easily as well as quickly and can get the loans with considerably lesser interest rates. At the same time investors can fetch better returns from their investments. While getting inspired by the stories of successful P2P lenders in countries like the US and UK, Thai investors should also learn about the bitter experiences of Chinese lenders who invested in the peer-to-peer lending platform. In fact, the investors as well as borrowers in Thailand are blessed with the best opportunity to learn about P2P lending in detail, analyze both pros and cons and then enter the P2P lending platform after taking all precautions against fraud practices and security risks.
Digital platform and credit scoring
P2P lending will certainly open a broad avenue in front of the borrowers where they can access the capital easily. The only requirement is that the Thai public must be thoroughly educated about P2P lending which is indeed a digital platform and those who want to take advantage of this platform must be familiar with internet and as far as possible should possess own internet connection. This type of connectivity will ensure the borrowers easy accessibility to a very broad avenue of lenders who are ready to provide them funds at lower interest rates without dragging them through complicated procedures. On the other side, the investors in Thailand can have a lot of options to invest their funds and get more returns than the returns provided by bank deposits. The credit scoring method which is followed in P2P lending ensures safe and error-free matching among the lenders and borrowers. The credit scoring model will enable the lenders in Thailand to identify and understand the risks involved in each and every P2P lending transactions so that they can take the right decision every time. Since the advantages are more for lenders as well as borrowers, peer-to-peer lending is expected to get popular in Thailand in 2020.