CEO and founder of Inspeer P2P lending platform, Denis Kabanets, reveals main opportunities of Inspeer project and gives some guidance on how to succeed in P2P lending.
According to numerous reports, lending platforms’ costs are much lower than traditional banks costs. AltFi Data Analytics, published by investment bank Liberum, shows that the ratio of operating costs to the loan portfolio at the crowdlending platforms is lower by almost 40% comparing to banks. Lower costs mean higher profitability for investors. In terms of yield, P2P lending outperform savings accounts, and certificates of deposit.
Diversification is a way to deal with so called systemic risks. Investing to dozens of non related loans gives you lower systemic risk than investing in people with similar lending goal and type from one particular region. Which is still less risky than investing in one particular loan, taken out by one person. In this extreme example, systemic risk is huge.
Keeping that in mind, Inspeer lending platform moves towards operating on a global level. So Inspeer can offer much better protection against systemic risks. Even if one particular market collapses, there still are other regions, markets, and loan types, that would not be affected at all. I would say, making up to 100 small investments is the best strategy.
Accurate assessment of each borrower while investing on P2P platform is extremely important. It is essential to spend at least several minutes going through borrower’s data first. So invest some time before you proceed with actual investment. Going back to Inspeer platform, we are trying to make available as much borrower’s data as possible. Actions performed by potential borrower on our platform, account creation dates, and much more. Comprehensive rating system will be developed as well. Obviously, we do not rely just on this kind of information, and our internal scoring and anti-fraud algorithms do their job in borrowers’ assessment based on 20 000 of parameters.
Despite all measures that are taken by lending platform to reduce systemic and fraud risks, investor still takes risks on each investment he makes. To-good-to-be-true rates, recently created accounts or lack of information should put you on guard. Again, there’s a place where diversification and educated guesses come in. At Inspeer, we provide the highest scoring quality possible, and we believe in importance of platform community at the same time. Giving a grade to a borrower, investor helps others by expanding community and the rating system.
Inspeer is a modern P2P lending platform that will work with cryptocurrencies and fiat. Inspeer has announced that they will be hosting an initial coin offering for their token, ‘INSP’. Participants holding this token will receive a proportional percentage of distributable Inspeer’s profits.
The Inspeer ICO will begin on November 6th, and continue until December 6th, 2017. They will offer a total of 50 million INSP tokens at an investment of $1.00 each. Expedient contributors will be offered up to a 15% bonus during the first two weeks of the ICO. For more information on the Inspeer platform and coin offering, visit inspeer.io.
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