Nowadays a startup trend is getting more popular and practical in Thai loan industry. Especially financial startup like Fintech which brings us a better option and helps financial system more stable and efficient.
As we know, a middleman is the one to get the most benefit in trading. His job is to gather the seller and buyer together then keep the difference with himself. In the finance industry, the biggest intermediary is the bank. The main role of the bank is to capture the people who have money to meet the people who need money. People who have money left will come to deposit money with the bank, and the bank will get “deposit interest.” The people who come for money will pay for “loan interest.” Typically, the bank will get the difference from the interests which costs a lot here.
Some can now imagine when we do not have to rely on the bank anymore. If we can just go to the website and apply to be a borrower or loaner online, life will be much easier. And that can come true with Crowdfunding. Their model is based on online platform; for example, A can just go to the website to find B who wants to invest. A will pay B with goods, similar to pre-order business. Some Crowdfunding based websites will pay interest instead of goods. This kind of business is known as Peer To Peer Lending (P2P) for personal loan and Peer To Business (P2B) for SMEs loan.
When P2P is known well in many countries including Thailand, P2B is still new and needs some time to put on the investment market. However, we have to admit that both P2P and P2B are definitely becoming a hit because the borrowers will get low interest and the loaners will get higher interest in a better way. In the investor’s point of view, P2B is a good investment opportunity to help debt securities with risk diversification to get good returns. If P2P and P2B kind of business are officially legalized in the next year, it will help reduce the problem of access to capital of the business. However, not everyone can get approval.People who can do must have documents and evidence to gain trust from the loaners.Now we may suggest you to keep a good credit for a preparation.