The rise of P2P Finance model

The Global Financial crisis of 2007-08 in the U.S changed the global financial landscape dramatically resulting in the disruption of the conventional models of finance. The rapid devaluation of financial instruments like Mortgage backed securities (MBS) & credit default swaps either precipitated the collapse of many financial institutions or they needed to be bailed out by their respective governments. As lending dried out from the traditional financial channels caused by the extreme credit crunch, governments encouraged the emergence of new players & business models to provide alternative finance solutions to retail & institutional lenders. In U.S the Jumpstart Our Business…...