What is P2P lending and has it become a misnomer?
Peer-to-Peer Platforms (P2P) opened a new frontier in digital lending by connecting individual investors directly to borrowers. UK-based Zopa was a pioneer in this form of crowdfunding, but others like LendwithCare and KIVA offer different models. These platforms channel investors to MFIs that then lend to individuals or businesses. And their success has attracted the attention of traditional financial institutions that don’t typically serve downstream markets.