Compared with traditional private lending, P2P online lending avoids the embarrassment of taking a break when borrowing from relatives and friends. The highly dispersed investment makes it unlikely to have much impact on lenders even if credit risks occur. It is precisely because of these comparative advantages that P2P online lending has the genes for growth, development and even growth in the micro-credit market segment.
As far as the supply side is concerned, P2P online lending is favored by a group of investors because it provides a flexible and independent investment method for the market and brings investors a high level of income. In addition, the mature platform has a relatively perfect risk protection system, which has its unique advantages compared with the traditional investment and financial management channels. Because of this, the online loan model has attracted a lot of funds and has the vitality of sustainable development.
Because P2P online lending has the nature of private finance to a great extent, but the domestic online lending market is not restricted by the system at present, and it has achieved interest rate marketization ahead of the whole financial system, so the yield level of online lending can be used as a window to observe the folk credit market. Further, with the continuous promotion of cooperation between online lending platform and regional financial institutions, the localization trend will make its function as an observation window of regional credit supply and demand increasingly prominent. This provides a new and feasible method for us to observe the economic activities of a certain area from a micro perspective.