Daniel Rozas is a microfinance researcher based in Brussels and specializes in market analysis, risk and crisis, and client protection. From 2001-2008, he worked for the US mortgage investment company Fannie Mae and witnessed firsthand how risk within a market can build and then explode into a crisis. In 2013, he co-developed MIMOSA (the Microfinance Index of Market Outreach and Saturation), a tool to measure capacity and saturation levels in markets.
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.