5 Questions
What is the primary way in which banks earn profit according to the traditional banking model?
Benefiting from the spread between deposit and lending rates
What benefit do savers receive from P2P lending as compared to traditional banking?
Higher interest rates
Why might it take time for all of a large deposit to be lent out in P2P lending?
Limited availability of suitable borrowers
What is a key drawback associated with immediate withdrawals in P2P lending?
Reduced interest rate on remaining funds
How does crowdfunding differ from traditional P2P lending?
Crowdfunding relies on donations rather than loans.
Explore the concept of peer-to-peer (P2P) lending and crowdfunding as alternatives to traditional banking. Learn how P2P lending impacts borrowers, savers, and the overall banking landscape.
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