Crowdlending also called peer-to-peer lending is a relatively new form of lending. Peer-to-peer is originally an IT term and describes a communication model in which each party has the same rights and opportunities. Above all, peer-to-peer applications such as Samlers and Knowes are known, which allow members to directly access each other’s data.
The term peer comes from English and means equal or equal. This has been implemented in financial peer-to-peer models, such as crowdlending. In its original form, a platform provides a loan between the lender and the borrower without being a credit party. In this case, the parties are equal and the lender receives the installments paid by the debtor with interest via the crowd lending platform. There is usually a 1 to 1 relationship between the borrower and the lenders. Several lenders (the so-called crowd) finance a loan, which in turn is then paid out to the debtor.
The platform only acts as administrator and as paying agent and receives a commission for this. The model does not provide for the formation of the loan agreement any bank or a conventional credit institution. Since such conventional providers mainly live with the interest differential business in the loans, ie finance cheap and borrow expensive money, the interest rates for both credit partners are usually relatively poor for such providers.
Since the crowdlending business is financed solely by platform fees, the terms are more favorable for both credit partners than for a conventional provider. In this model, the bank only has the role of the account-holding institution through which the cash flows are settled.
In Switzerland, crowd lending is still in its infancy. Due to the many advantages, this is in our view a model in which a second look is worthwhile. More information can be found on our page .