Peer-to-peer lending has been criticized by banks but is now gaining more trust from small investors all over the globe. Peer-to-peer lending is a viable alternative to the banking sector, even though it offers no guarantees and offers a low return.
First, the interest rate offered by banks is significantly higher than that of the bank. Second, trust in banks has declined by roughly one-third since 2008. The third and most important aspect is the desire of private investors for a new, simpler and more accessible world banking system.
Lending Club and Prosper are excellent examples of alternative mechanisms that the non-banking sector can be used to prove this. These platforms offer an average annual interest rate of 4% to 6.6% and a range of bad loans from 1.8% to 2.9%. It is important to note that these platforms have had impressive results, as evidenced by the fact that loans in excess of 10 billion dollars have been issued.
UCG TRUST launched in 2016 and has been a hot topic for US investors. The international financial company United Capital Group manages it. They lend in five countries and combine 5 online lending platforms. UCG TRUST’s operating process cannot be considered peer-to-peer lending. However, taking into consideration the diversity of its assets, it is the only company that accepts responsibility for its investors and guarantees to return their investments. Comparing with other platforms, it is very simple to invest, although in some aspects, it resembles automatic lending selection. Open a deposit account through the website, choose a term for investment, and then transfer money to your account. The term of investment determines the deposit interest rate and it can be as high as 11% p.a. The most important aspect is the steady income.
After learning the operation procedures of these Internet platforms, I have come to the conclusion that they are the future.
