LOANS, PEER TO PEER
loans, credits, credit loans, loans credit
What about Big Data? How can it is revolutionizing the credit in the world market?
We live in a world where millions of real-time data and ubiquitous way are generated. These data come from a variety of sources, sensors, or social networks, and contain information of our behavior, preferences, habits, and in general, on aspects of everyday life that can be of great interest.
Examples are data on traffic in cities, climate, the credit rating of a person, where can I buy a product, information about housing rental, market shares, or even, which is our blood sugar level. This massive stream of data is known as Big Data.
Big Data has become an essential tool to support decision making in different fields. For example, Governments make use of large volumes of data to anticipate events that can affect national security, or collect and analyze information to be able to predict how would run better cities.
In the case of enterprises, applications have been designed to prevent fraud, analysis tools for corporate decision-making, and in the case of investment management, funds coverage using algorithms which process information from twitter and bloomberg in order to predict the behavior of the stock indices.
A paradigm shift in the credit market, making use of Big Data
In general, to carry to out a project there are three alternative of financing:
–Credit banks: they ask for collateral that guarantees the ability to pay the debt. The rate of interest it determine them analysts of credit with a reference in the rate of interest objective of the Bank of the Republic.
–Debt bonds: are loans made by investors in Exchange for an interest rate. The debt market determines this interest rate.
–Actions: this is a mechanism of funding when them investors decide to share the risk with creators of the project in Exchange for an expectation of recovery in the price of them shares and dividends of utility.
However, these funding alternatives are exclusively for companies, not for individuals. I.e., “John Doe” may not issue bonds in the debt market to finance his marriage, nor does not issue shares to finance their studies master’s degree abroad.
“Peer-to-peer” loans are the solution for this niche market and act in a complementary way with commercial banks, equity and debt market. Computer graphics explains in detail how the platforms that are driving the loans “peer to peer”.
Entrepreneurs emblematic of the internet such as Jack Ma (Alibaba), Max Levchin (co-founder of Paypal and Affirm) and some “start-ups”, as Kreditech in Germany and Kubofinanciero in Mexico, are betting on these platforms to cover the market of micro-credit and college credit.
The technological resources of this type, presenting a solution to everyday problems, are a great business opportunity in Colombia which, in turn, reflect how, through the use of Big Data, you can leverage information about people who are in the network to make better decisions.
Loans “peer to peer” is a business that does not compete by markets developed by commercial banks credits, but constitutes a complement to expand micro-credit market. The great beneficiary is the end user because these platforms systematizes a market which is in the hands of the “drop by drop” and characters without scruples who take advantage of the need and dreams of progress of Colombians. Unfortunately, the regulation reactive and not proactive is a stumble for the innovation and has difficult the development of these platforms in our country. For this reason, should be reconsidered, since Governments, flexible regulations promote the solution to the problems and challenges of today’s society.