Peer-to-peer (P2P) lending is a revolutionary FinTech innovation, with the potential to address the lack of SME financing in Singapore. Since traditional middlemen like bankers aren’t part of the system, it increases profits for investors and convenience for borrowers and small businesses.

Banks’ major financial model has been interest spreads – the difference between what it charges on bank loans and what it offers on your savings. Suppose Anna deposits SGD 100 in a bank, and gets SGD 1.50 per year of interest on it. You, a small growing business, on the other hand, may be charged even up to SGD 20 per year for borrowing SGD 100.

According to P2P lending – What if Anna just lends you the money directly?

Investing in P2P lending is like utilizing an online platform such as eBay. eBay lets buyers and sellers connect and trade goods, bypassing the need for a retailer. P2P lending is quite