Design Strategies that will boost the trust-factor of P2P lending
What is P2P lending?
What do people do to attain financial stability? – Hmmmm, Maybe people save and invest money to attain financial stability.
What is the best way to attain financial stability? Or Which are the best platforms to invest money?
With all that information out there and all the options at your disposal, how do you decide what to do?
It’s not hard to find new opinions about how you should be investing. Everyone’s got an opinion on which is the best platform to invest money or which mix of investments are bound to outperform. But mostly people invest in banks because they usually provide reasonable growth and a decent dividend.
But with Indian bank’s saving accounts just offering 4-5% interest rates, the options of doing something else with your money are increasing. So is it, that in a world where digital companies are born every day, the options of where to put your money in are more than you can think of; There are many available options with amazing digital platforms and with even more advantages than the traditional banks. P2P lending platforms are one of them.
Peer to peer lending popularly known as P2P lending involves consumer investors giving loans to borrowers through online platforms. This virtual marketplace connects borrowers and lenders, thereby cutting out the traditional banking protocols. The whole function is not something new: but these companies are giving investors the opportunity to invest at lower costs, directly to borrowers, who now have a greater opportunity of getting a loan at a cheaper price.
Peer-to-peer lending is becoming an emerging trend in the FinTech sector, as this principle cuts out most of the middlemen involved in the lending game. The primary goal is to loan money to individuals such as entrepreneurs while avoiding all of the requirements put in place by traditional finance.
As a result of this, it is a fact that P2P lending is providing a better option to earn higher returns compared to savings and investment products offered by banks.
You’ve got Lendbox, i2i Funding, Faircent, Upstart, Funding Circle, Prosper Marketplace, Circleback Lending, Peerform, SoFi, Lending Club, etc., offering great services at high investment safety levels. However, don’t get us wrong, at the end of the day, it is an investment, so there’s always a risk.
There is a saying “never invest more than you can afford to lose” . But yeah, from an objective point of view, the quality of service and safety of P2P lending platforms can be compared with traditional monstrous banks.
When can P2P lending platforms help? – 6 examples
- Pursuing higher education
- Buying a house
- Buying a car
- Dealing with an unpredicted event
- Borrowing for your wedding, etc.
- Starting your own company
P2P lending makes meaningful connections for all your borrowing and investing needs. They are better than other types of credit platforms. But how is it seen by the consumers? Are they trusting P2P lending platforms as much as they trust traditional banks? Are they benefiting from the offering of this young non-physical companies?
To understand more about this, we interviewed our in-house designers.
We interviewed 4 in-house designers concerning their investments and then introducing them to P2P lending platforms. The objective was to see their reactions and get a broader opinion about this alternative investment option and especially, to what extent they trust these companies in comparison to the traditional options.
We can see that there is not so much knowledge in the streets about P2P lending platforms, even though many find the idea very interesting.
But what is most important is that people tend to not trust this alternative investment option. The four designers whom we interviewed rated these p2p lending platforms – 3, 2, 7 & 5 on a scale of 10 which on an average (3+2+7+5) = 4.25, this figure shows that the people are not so confident in trusting a platform that matches you with an unknown borrower regardless of all the information, legal contracts, physical verification, etc, that is provided.
But will you be saying ‘NO’ if p2p lending platforms will offer you interest rates of flat 20-25%? Will you be happy to have a hard bond paper making the investment trustworthy? Will you be happy if you have a post dated Bank Cheque on the investment for security?
So, How do you build that trust?
Design can build that trust. Even though Fintechs are highly known for their amazing designs, we have noticed that there’s a lot more to do to gain the confidence of the user. NetBramha can make people feel confident and secure with their investments by delivering a strategic design solution.
Some ways by which we can implement this can be by adding layers of security to verify borrowers, by providing access to their social media accounts, by adding pictures to the borrowers and lenders face’s, by providing a chat interface for the borrower and lender, Trusted by tag, Testimonials, etc. Let’s have a look at one such solution…
How have we built trust for Zenify
Zenify is a disruptive online platform for managed home rentals. Zenify sublets houses to tenants & owners in turn lease it with Zenify.
NetBramha delivered strategic thinking driven design output. NetBramha designed their web experience with a mobile first approach which resulted in a whopping 20% jump in their conversion rates. While they were offline and finding it difficult to get clients onboarded, the online presence allowed them to go beyond the ordinary and break the stereotypes.
e also created a mobile app for owners to lease their properties online with Zenify without having to manage tenants or repairs. The result was an instant connect with homeowners and potential tenants. Check the entire case-study here.
We believe design can solve any problem on earth. We at NetBramha, like to question everything, research, think, analyze, brainstorm in order to come up with the BEST solution. We are here to do that – Provide the best solution for your business problem!
What can we do for your business? Let’s connect.