PRATHAM KINGAR

200040075
Peer-to-peer (P2P) lending, an online financial practice connecting investors with borrowers, faces a
challenge as P2P platforms lack direct interaction channels between lenders and borrowers within the
system. Despite the potential of P2P lending, users' trust in these platforms is hindered, and the
market size remains underestimated, signalling a critical hurdle for industry growth and user adoption.

Why did you choose this problem and what

potential impact can solving it create?
The intricacies of P2P lending platforms lie in their
role as modern financial facilitators, connecting Credit Market Distribution
investors with individuals or small businesses. 3% 7%
These platforms, acting as intermediaries, manage 5%
2%
transactions with limited liability, leveraging
11%
technology for a sophisticated and risk-conscious
approach. 72%

P2P Lending Challenges

Role Complexity:
 Platforms act as intermediaries connecting
investors to borrowers. Banks
 Transaction management with limited liability
NBFCs
is crucial.
Peer-to-Peer (P2P) Lending Platforms
Fundamental Misalignment:
Microfinance Institutions
 Lenders prioritize risk minimization, while
platforms often incentivize riskier borrowers. Government-backed Programs
 Non-users perceive P2P lending as high-risk Fintech Companies
due to this paradox.
Solution Impact With P2P financing holding a mere 2% market
Strategic Alignment: share, significant growth potential exists by
 Aligning lender & platform priorities is crucial. addressing user trust issues and tapping into the
 Boosts stability and credibility in P2P lending. untapped Tier II and Tier III personal loan market,
Positive Environment:
where traditional banks face challenges due to
 Fosters a conducive environment for
stringent documentation and income criteria and
borrowers and investors.
for startups where securing debt financing does
 Builds confidence in P2P lending as a viable
financial solution. not have commercial platforms.

Who is the customer segment getting impacted?

A shift in P2P lending systems can notably affect
the customer segment comprised of individual
investors and small enterprises seeking alternative
financing solutions. Changes may influence the
accessibility, terms, and risk profiles associated
with P2P lending, potentially shaping the dynamics
for borrowers and lenders in this particular market
segment. This customer base, often attracted by
the agility and flexibility of P2P lending, could
experience shifts in opportunities and challenges
based on alterations in platform policies, interest
rates, and risk mitigation strategies
 PRATHAM KINGAR
200040075

Aditya Sharma "I'm open to25P2P Aakash Jha "Traditional

35banks Tanya Seth "We're onto30something
lending, but I need don't understand my big, but we need
assurance and income streams. I need funding that
transparency to a hassle-free way to understands the
confidently invest and get the credit I need startup. Flexibility &
grow my portfolio." for my home project." shared vision are
crucial for us.”
Financial analyst with a keen interest in
Freelancer in the gig economy with Tech entrepreneur with a promising
diversifying investment portfolio.
variable income streams. startup in the early growth stage.
Goals: Achieve higher returns than
Goals: Secure a personal loan for Goals: Secure debt funding for scaling
traditional investment options.
home improvement. operations and product development.
Challenges: Uncertain about P2P
Challenges: Faced rejection from Challenges: Limited access to
lending due to perceived risks and lack
traditional banks due to non- traditional financing, seeking flexible
of trust.
traditional income sources. terms.
Behaviour: Prefers thorough research
Behaviour: Values convenience and Behaviour: Proactive and well-versed in
and transparent platforms.
accessibility in financial services. alternative funding options.
Needs: Clear information on risk
Needs: Easy application process, fair Needs: Quick approval, flexibility in
mitigation, a user-friendly interface, and
interest rates, and personalized loan repayment, and investor alignment
guidance on selecting reliable
options. with the startup's vision.
borrowers.

How will you solve this problem using technology?

 PRATHAM KINGAR
200040075

How will you launch this solution to the customers?

•Roll out the •Launch a

solution for beta Strategic comprehensive
educational Incentive Programs:
testing. Partnerships:
campaign
•Collect feedback
on user •Highlight the
benefits & risk •Implement
experience, initial sign-up
interface mitigation
strategies. incentives for
both investors
Soft Launch and Educational and borrowers.
Beta Testing: Campaigns: •Offer exclusive
promotions

What are the Success Metrics Why could this solution fail?

User •Monitor the growth of •Stay abreast of regulatory

Acquisition user registrations and track Regulatory changes and adapt the
and user retention rates over Risks: platform to comply with
Why could this solution
time. fail? evolving requirements.
Retention:

Lack of •Continuously engage with

Investment •Measure the total investment investors through
volume on the platform to assess
Investor personalized offerings and
Volume: its attractiveness to investors. Interest: regular communication.

•Prioritize robust
Trust and •Conduct regular surveys
to gauge user trust levels
Security cybersecurity measures and
Satisfaction and overall satisfaction Concerns: conduct regular audits to
Surveys: ensure user data safety.
with the platform.

•Address negative
•Keep a close eye on Market perceptions through
Default default rates to ensure transparent communication
risk management Perception: and ongoing educational
Rates:
strategies are effective. efforts.