How P2P lending will transform the FinTech landscape in Africa

The P2P lending sector has the possibility of changing the Fintech ecosystem due to the potential that these platforms present. But… why P2P lending offers the most bang for the buck

1. Vast Potential: The potential for P2P and crowdfunding models in Africa is estimated at a whopping $2.5 billion by 2025. P2P lending volumes growth in Africa have averaged 300% in the past few years

2.Wider scope: P2P platforms match borrowers and lenders directly and play a more active role in bridging credit access

3. Use of technology: The platforms have automated matching algorithms that connect borrowers with the best fit lenders leading to quick turnaround times on loan decisions.

4. Ability to scale and adapt to the new normal: P2P lending platforms are a natural fit for the new normal, where travel constraints and social distancing rules force borrowers and investors alike to rely increasingly on technology.

5. Potential to spur economic growth: In particular, on the SME side, P2P lending platforms can unlock capital access to small businesses in numbers that banks would find difficult to attain