Question

The head of the strategy of Kreditech, a German startup is quoted in the article “We are a tech company that happens to be doing lending". Why might this overstate the extent to which online lending can rely on emerging technology and data to make decisions on taking and pricing the credit risk of borrowers?

Explain the technology foundations of online (marketplace) lending.

Answer 1

Foundation of marketplace lending are as follows-

A. Making it fast and smooth is the primary concern of marketplace lending and it should be providing consumers with better interaction.

B. Making the consumer needs at the heart before taking the decision as consumers needs should always be priority and online software must be developed after keeping them in mind and they can be customised and highly dynamic in nature

C. It should also prioritising in making the consumers coming back to the online marketplace again and again because it will be providing with better after loan services to them.

D. Making the credit available to the consumer anytime in the world and make it accessible to him without much hindrances so easy availability of online Credit system will be offering them an incentive to use the the marketplace lending.

E. creation of the specific products for these market place which are very new in nature so that the consumers needs are properly kept in mind.