Advantages And Disadvantages Of Peer To Peer Lending

In the United States, the public capital markets are regulated primarily by the US Securities and Exchange

In 2008, one of the worst financial crises since the Great Depression occurred. The severity of this collapse cannot be understated as demonstrated by the bankruptcy of Lehman Brothers, the fourth largest investment bank in the US, and with many other financial institutions such as Merrill Lynch and the Royal Bank of Scotland having to be bailed out. In addition, the Global Banking System was within a whisker of collapsing and if it where not for the trillions of dollars invested in the system by national banks then this banking collapse would have lead to economic catastrophe. Therefore, in order to avoid such a calamity from occurring again, it is important to ask the question why did this financial recession occur and what factors contributed towards this downfall? Although there are many reasons as to why this recession occurred it could be argued that securitized lending and shadow banking played the largest role in this economic crisis. It is therefore important to understand what securitized lending and shadow banking means. Securitized lending is the process by which a financial institution such as a bank pools illiquid assets, such as residential and commercial mortgages and auto loans (by which the bank receives from the public through house mortgages and loans), and loans these newly formed short-term bonds to third party investors in exchange for cash or collateral. Since its creation in the 18th century, securitized lending was increasingly popular and very much

All a person has to do is go online and provide information like, citizenship, employment, checking account with bank, drivers' license, and contact numbers. Once the information is verified, a person can have a loan in a matter of hours.

The torrent file is a file that contains only data which identifies the components that the digital file has been divided into. This in order to facilitate distribution of this file, an address for one or more trackers is a rule specified in a torrent file. (Stockholm District Court Verdict, 2009). Basic knowledge of P2P and Bit-Torrent is needed to understand the direct work of The Pirate Bay’s platform.

At some point during person’s life, he or she may find himself or herself in some sort of financial misfortune. In such instances, payday lending can be a convenient, instant, and short-term option one may want to consider. The speed, ease, and convenience associated with payday lending enables an individual to get out of trouble quick, which has resulted in payday lending consistently growing in popularity over the last couple of decades. Since the early to mid 1990s, the payday lending industry has continuously grown in popularity as well as quantity. In fact, there are currently more than 20,000 payday lenders in the nation, which is more than all of the McDonald’s, Walmarts, and Home Depot stores combined. These loans, which are given by payday advance stores, check cashers, and pawnshops, are cash advances consisting of relatively small amounts of money, usually accompanied by high interest rates, against an individual’s next paycheck. Payday lending gives individuals the opportunity and benefit of providing them with the financial support they may need in times of desperation or crisis. With this being said, however, the prosperity experienced by payday lending has been rivaled only by its notoriety, as banks, national and state governments, and consumers have contended that payday lenders exploit and take advantage of low-income individuals and minorities inevitably trapping them into a cycle of never-ending debt.

So, it is mostly similar with the finance from the bank, but instead of borrowing one greater sum of money from one bank can be borrowed lesser sums of money from multiple individuals.

Loan Origination is very small segment of company. It’s around only 2% of Nationstar’s total revenue. The purpose of this paper is to point out key issues, problems and opportunities related to originations platform and how can Nationstar strategize to expand origination while mitigate these risks.

The industry for short-term cash loans (payday loans) grew in the early 1990’s because of the shift in financial services marketplace. The cost structure of the market rose due to bounced checks, overdraft protection fees, and late bill payments penalties. Second the trend of regulation of payday advance service that allowed protection for consumers. To avoid such cost, payday loans were the solution for consumers.

However, there are other reasons for the increasing number of people looking for an online payday loan. Unlike stores, websites are open

From the data discovered based on increase of technology, it provided an understanding of the traditional process of being granted or providing loans and mortgages. Banks traditionally grant loans to individuals or businesses that meet specific credit requirements and would receive periodic payments. This process continues until the loan is fully paid off. Due to the increase in technology, banks were able to lower their costs for transactions by securitizing loans electronically. This innovation allowed them to bundle up all small loans into a standard debt security, which then could be bought and sold in the financial market. This led to a structured credit product offering that generated large cash flows from a collection of underlying assets with certain risk management. Investors had the opportunity to pick and choose what they wanted to purchase depending on their likes and risk-taking

A lot of people are very adament about self-regulation. Any other kind of government regulation on the internet would be a very long process. It's not just the U.S. that has access to this tool. It is the World Wide Web, meanig it's world wide. There would need to be some sort of committee formed and it would have to consist of officials from different countries in order to have any law or regulation because the Internet does not belong to the U.S., it belongs to the world.

Have you ever heard of peer to peer file sharing technology or P2P? What is P2P? According to J.A Pouwelse. P. Garbacki and his article “The Bittorrent P2P File-Sharing System: Measurements and Analysis”, “P2P is the transfer of a digital file from one “peer” to another. “peer” refers to computer clients. This transfer can be as simple as the File Transfer Protocol(FTP), which transfer a file directly to a visitor’s personal computer through a server-hosted website (Pouwelse, Garbacki, Epema, Sip, 2005).” File sharing create many ethical issues, but these ethical issues can be different if we are looking at it morally, ethically or legally. Moral is an individual’s belief about right or wrong. Not everyone will have the same moral beliefs because they have different background or culture. For examples, we can see many people streaming many document online and or sharing this document and these people do not consider this issue a problem. If we look at it in an author stand point we might consider this issue a problem since it influences our benefit. On the other hand, if we are looking at a user standpoint, we do not think it is a problem because we are not paying for the information we are accessing. We can conclude, that It depends on your cultural belief. Ethic is a belief that depends on the society. The society or a group determines if a situation is good or bad. An individual cannot change the ethical belief unless a group. This can be

Target businesses. Do not charge lenders or borrowers for the primary loan market, however charge 1% to the sellers of secured SME loans.

According to forbes.com, Peer to peer accounts up to 90% of capital deployed in financial industry. Presence of Peer to peer lending is now an alternate financing platform to investors and companies without going through traditional methods of approaching banks or financial institutions due to fact that they offer higher returns.

According to the European Credit Research Institute, the term ‘peer-to-peer’ (P2P) describes the interaction between two parties without the need for a central intermediary. The term originated in the field of computer networking, to describe a network where any one computer can act as either a client or a server to other computers on the network without having to connect to a centralised server (A. Milne and P. Parboteeah, 2016). Peer-to-peer lending is used to describe online marketplaces where lenders (also referred interchangeably as investors) can lend to individuals or small businesses (A. Mateescu, 2015). Peer-to-peer lending activities have grown exponentially since the concept launched. For instance, from 2015 to 2016, P2P lending activities went up by 39%, from £2.3bn to £3.2bn (Bondmason, 2017).