Peer-to-peer lending is often described as non-bank banking. Investors lend money and people borrow money, and it all takes place online. Through cutting out the middleman, investors earn higher returns and borrowers get better terms.
Peer-to-peer lending is a good investment choice for you because you’re prepared to take a risk to achieve much higher returns on your investment over the short-term. You also like the idea of being able to pick and choose which loans you’d like to invest in so your portfolio can match your interests as well as your comfort levels in terms of risk. You see it as a win-win for everyone – and a bit of competition for traditional banks can only be a good thing!