Inspired by p2p: Inspeer is changing the concept of direct lending
According to the inhabitants, banks are an integral part of the financial structure of the state. If there are no banks, there will be no place to get a loan. However, there is an alternative, and this model is quite working: it is about peering lending.
Over the years, potential borrowers accumulate more and more complaints against banks. In the post-crisis years, their demands became too strict - often even without paying reasons, they even refused to pay clients in loans without giving reasons. Against this background, the market for direct lending p2p, or from person to person has flourished: the majority of microfinance clients come from banks, because here it is more convenient, easier and more profitable. The crisis was a good moment for the development of this sector: it is possible to trace the analogy with the United States, where the peer-to-peer credit market arose directly in the years of the 2008–2009 crisis.
The p2p lending model is simple: the lenders here are individuals who have available investment funds, and the platform on which the transaction takes place is provided by a peer-to-peer lending company. Much depends on this company. In particular, such a key point as the security of the transaction: it is not a secret to anyone that people with not the most successful credit history or fraudsters often claim to receive services from the p2p platform. For their services, such a company takes a commission on transactions, but this percentage is incomparably less than the space difference observed between credit and deposit rates in traditional banks.
Crowdling is a more general concept, which includes both p2p lending itself and its expanded variety - p2b lending, i.e. personal lending to businesses, when individuals lend funds to companies, primarily to small and medium-sized businesses.
It is quite simple to take a loan with the help of crowding: you just need to leave a request on the site, the confirmation of which happens quite quickly and most often in automatic mode, when the parameters of the borrower and the lender are the same.
Despite the apparent simplicity, the deal is the result of the tremendous work that the service needs to do to decide whether it is possible to credit the applicant and what the loan rate will be.
Crowdling is a very profitable investment, since interest rates for investors are much higher here than on standard bank deposits. Again, compared to microcredits, where interest rates are shamelessly overpriced, crowding is also incomparably more profitable for a borrower - with happily established relations with the p2p platform, the loan rate will be lower than at a bank, not to mention a microcredit organization.
Crowdling platforms have a number of common features:
With regard to overdue debts, most platforms do not take on a collection function, but only remind borrowers of the need to repay the debt. Most platforms transfer such debts to third-party collection agencies.
The evolving market and the obvious advantages of mutual financing platforms, as compared with traditional financial institutions, are increasingly attracting the attention of investors all over the world. The total volume of venture and direct investments in the largest companies involved in crowdfunding has already exceeded one billion dollars.
However, investors in different regions evaluate the largest p2p platforms in different ways. American platforms are considered mature, profitable companies: they have already gone through all the stages of attracting venture capital and are financed by private investment funds. Almost 70% of all venture capital investments in p2p platforms are accounted for by companies in the United States.
The European market is quite segmented by the size and level of adoption of new forms of lending. Here the absolute leader is the United Kingdom, which occupies 81% of the European alternative financing market. Perhaps the main reason for this is the historical concentration of capital in the capital of the United Kingdom. It was in the UK in 2005 that the world's first p2p credit platform Zopa was launched.
The central European market today is very attractive for crowdinvesting. This is due primarily to the tightening of the conditions of traditional bank lending in Germany, Switzerland and Luxembourg.
Chinese platforms, according to investors, are currently in the initial growth stage. However, now in China one can observe a real boom in p2p lending, and, according to many observers, this market is reminiscent of the times of the Wild West, which partly discredits the idea. Many of the Chinese p2p platforms found a connection with fraudulent schemes and manipulations to circumvent the law.
The Russian crowdfunding market is developing much slower than the global one: the first domestic companies in this segment appeared only in 2010. The problems of the Russian p2p lending market are primarily related to the lack of a developed credit market and the lack of clear scoring systems (grades), such as, for example, FICO in the USA, which combines and analyzes data from three main credit bureaus: Experian, Transunion and Equifax.
Currently, the development of the Russian market is constrained by a number of factors, among which the main ones are as follows:
Against this background, the emergence of new players in the Russian lending market is needed, which are able to provide a qualitatively different development of the promising area of ​​crowdfunding in the country. And such a company has already appeared in this segment.
Inspeer is a platform on the basis of which in the future it is planned to create a financial institution that meets the needs of the modern economy and meets the latest trends in peer-to-peer lending. In addition to meeting the demand of the traditional p2p lending market, the company aims to cover a new promising market for blockchain projects.
The Inspeer team has combined its experience in online microcredit, peer-to-peer and traditional bank lending with cutting-edge scoring developments, resulting in a product that can transform the landscape of Russian p2p landing into unrecognizable.
In particular, the optimistic scenario implies an exponential growth of the market. The combination of the following factors may contribute to the implementation of this scenario:
In addition to the Russian market, the Inspeer team has experience creating online credit sites in Spain and Germany.
In Russia, Inspeer is represented by the p2p microcredit platform under the brand LightFin.ru. A loan under this platform can be obtained without collateral and with a minimum of documents: only a passport is required for registration. LightFin is the first company in its segment, which reduced the time for approval of the loan to 1.5 minutes. This was made possible thanks to a special, fully automated scoring mechanism.
LightFin was created in 2016. Together with its partners, the company has prepared a unique scoring solution, thanks to which it was possible to minimize the risks of debt defaults by borrowers.
In 2017, the first loans were issued. During the first month of work, about 200,000 applications for a loan were processed. In February 2017, the automatic “soft collection” procedure (debt collection using letters and calls) was integrated into the system, consistently moving into the “hard collection” phase, entailing a lawsuit. In March 2017, the obligatory requirement for the borrower was to connect a social network account, as a result of which the number of fraudulent manipulations with the service was significantly reduced. A little later, the system implemented the ability to detect repeated requests from the same device. In April, mobile applications for iOS and Android were launched.
All of the above demonstrates the platform’s rather conservative approach to assessing the creditworthiness of borrowers. The percentage of approval of applications in Russia is currently just over 15%.
At the moment, the Inspeer platform provides high quality scoring during scoring and is able to detect duplicate accounts using the InsCore and OLAF services.
The creators of the Inspeer p2p platform for lending to cryptocurrency and Fiat are currently preparing to hold an initial token allocation (ICO), which will start on November 6 and continue until December 6, if it does not reach its financial goal earlier.
The overall goal of the Inspeer team is to expand its activities, transition to the global level, which is intended to facilitate the attraction of funds through ICO. Working at the global level provides great advantages, since it provides investors with the most effective protection against systemic risks compared to competitors offering investments within only one country.
The Inspeer Token, or INSP, is the first token developed with the participation of experts in the field of cryptolending, which gives the right to receive a portion of the distributed profit of Inspeer. The total stock of tokens will be 50 million pieces, which will be available for sale at a price of $ 1 for INSP.
The limited issue of tokens is the key to the future growth of their market value, especially taking into account the fact that all tokens not sold during the ICO are subject to destruction. As soon as the maximum ICO target of $ 30 million is reached, the supply of tokens will be terminated.
Inspeer encourages interested investors to buy INSPs in advance and offers up to a 15% bonus for investors in the first two weeks of ICO.
The legal team of the project has developed a unique legal tool to protect the rights of investors ICO. To ensure the maximum level of transparency and control, the company plans to attract a Dutch fund that meets the requirements of EU regulators and is managed by Byron Capital Partners Ltd.
Every 6 months, 20% of Inspeer's net profit is transferred to a special Ethereum wallet (ETH). Then the airs are redistributed between the holders of the project tokens in accordance with the terms of the smart contract. All holders are entitled to receive dividends in accordance with their shares.
Depending on the ICO results, the Inspeer team will have sufficient resources to implement the planned projects:
Over the years, potential borrowers accumulate more and more complaints against banks. In the post-crisis years, their demands became too strict - often even without paying reasons, they even refused to pay clients in loans without giving reasons. Against this background, the market for direct lending p2p, or from person to person has flourished: the majority of microfinance clients come from banks, because here it is more convenient, easier and more profitable. The crisis was a good moment for the development of this sector: it is possible to trace the analogy with the United States, where the peer-to-peer credit market arose directly in the years of the 2008–2009 crisis.
The p2p lending model is simple: the lenders here are individuals who have available investment funds, and the platform on which the transaction takes place is provided by a peer-to-peer lending company. Much depends on this company. In particular, such a key point as the security of the transaction: it is not a secret to anyone that people with not the most successful credit history or fraudsters often claim to receive services from the p2p platform. For their services, such a company takes a commission on transactions, but this percentage is incomparably less than the space difference observed between credit and deposit rates in traditional banks.
What is crowdfunding?
Crowdling is a more general concept, which includes both p2p lending itself and its expanded variety - p2b lending, i.e. personal lending to businesses, when individuals lend funds to companies, primarily to small and medium-sized businesses.
It is quite simple to take a loan with the help of crowding: you just need to leave a request on the site, the confirmation of which happens quite quickly and most often in automatic mode, when the parameters of the borrower and the lender are the same.
Despite the apparent simplicity, the deal is the result of the tremendous work that the service needs to do to decide whether it is possible to credit the applicant and what the loan rate will be.
Crowdling is a very profitable investment, since interest rates for investors are much higher here than on standard bank deposits. Again, compared to microcredits, where interest rates are shamelessly overpriced, crowding is also incomparably more profitable for a borrower - with happily established relations with the p2p platform, the loan rate will be lower than at a bank, not to mention a microcredit organization.
Crowdling platforms have a number of common features:
- A credit rating is maintained for each borrower, which is calculated either by the site itself or with the involvement of external services;
- The identity of the borrower is carefully checked: the provision of documents is a prerequisite for obtaining a loan;
- The lender can diversify a portfolio by automatically distributing the selected amount in equal shares between several borrowers. The key parameters of the distributing robot are set up by the investor himself: in particular, the level of reliability of the borrower, expectations regarding profitability, loan period, etc. The investor himself does not select borrowers for automated investments, and their number is usually limited to 50 persons;
- For both the borrower and the investor, the system determines the minimum and maximum investment limits;
- As in traditional banking, in granting p2p there is a grace period - the possibility of early repayment of debt without paying interest;
- As a rule, users of crowded platforms remain for each other anonymous counterparties.
With regard to overdue debts, most platforms do not take on a collection function, but only remind borrowers of the need to repay the debt. Most platforms transfer such debts to third-party collection agencies.
World practice of p2p landing
The evolving market and the obvious advantages of mutual financing platforms, as compared with traditional financial institutions, are increasingly attracting the attention of investors all over the world. The total volume of venture and direct investments in the largest companies involved in crowdfunding has already exceeded one billion dollars.
However, investors in different regions evaluate the largest p2p platforms in different ways. American platforms are considered mature, profitable companies: they have already gone through all the stages of attracting venture capital and are financed by private investment funds. Almost 70% of all venture capital investments in p2p platforms are accounted for by companies in the United States.
The European market is quite segmented by the size and level of adoption of new forms of lending. Here the absolute leader is the United Kingdom, which occupies 81% of the European alternative financing market. Perhaps the main reason for this is the historical concentration of capital in the capital of the United Kingdom. It was in the UK in 2005 that the world's first p2p credit platform Zopa was launched.
The central European market today is very attractive for crowdinvesting. This is due primarily to the tightening of the conditions of traditional bank lending in Germany, Switzerland and Luxembourg.
Chinese platforms, according to investors, are currently in the initial growth stage. However, now in China one can observe a real boom in p2p lending, and, according to many observers, this market is reminiscent of the times of the Wild West, which partly discredits the idea. Many of the Chinese p2p platforms found a connection with fraudulent schemes and manipulations to circumvent the law.
Problems of the domestic market of peering lending
The Russian crowdfunding market is developing much slower than the global one: the first domestic companies in this segment appeared only in 2010. The problems of the Russian p2p lending market are primarily related to the lack of a developed credit market and the lack of clear scoring systems (grades), such as, for example, FICO in the USA, which combines and analyzes data from three main credit bureaus: Experian, Transunion and Equifax.
Currently, the development of the Russian market is constrained by a number of factors, among which the main ones are as follows:
- high interest rates on loans comparable to the interest rates of microfinance organizations;
- the absence of legislative regulation and, as a result, significant difficulties with the formation of an automated portfolio for the lender;
- lack of developed high-quality assessment systems, which increases the risks for lenders.
Against this background, the emergence of new players in the Russian lending market is needed, which are able to provide a qualitatively different development of the promising area of ​​crowdfunding in the country. And such a company has already appeared in this segment.
Inspeer Financial Platform
Inspeer is a platform on the basis of which in the future it is planned to create a financial institution that meets the needs of the modern economy and meets the latest trends in peer-to-peer lending. In addition to meeting the demand of the traditional p2p lending market, the company aims to cover a new promising market for blockchain projects.
The Inspeer team has combined its experience in online microcredit, peer-to-peer and traditional bank lending with cutting-edge scoring developments, resulting in a product that can transform the landscape of Russian p2p landing into unrecognizable.
In particular, the optimistic scenario implies an exponential growth of the market. The combination of the following factors may contribute to the implementation of this scenario:
- lower interest rates;
- the emergence of new services (such as the issuance of loans in cryptocurrency);
- qualitative improvement of the scoring system;
- New legal norms that allow the lender to form a portfolio automatically based on the desired level of return / risk level;
- attracting additional investors to the market through ICO.
In addition to the Russian market, the Inspeer team has experience creating online credit sites in Spain and Germany.
In Russia, Inspeer is represented by the p2p microcredit platform under the brand LightFin.ru. A loan under this platform can be obtained without collateral and with a minimum of documents: only a passport is required for registration. LightFin is the first company in its segment, which reduced the time for approval of the loan to 1.5 minutes. This was made possible thanks to a special, fully automated scoring mechanism.
LightFin was created in 2016. Together with its partners, the company has prepared a unique scoring solution, thanks to which it was possible to minimize the risks of debt defaults by borrowers.
In 2017, the first loans were issued. During the first month of work, about 200,000 applications for a loan were processed. In February 2017, the automatic “soft collection” procedure (debt collection using letters and calls) was integrated into the system, consistently moving into the “hard collection” phase, entailing a lawsuit. In March 2017, the obligatory requirement for the borrower was to connect a social network account, as a result of which the number of fraudulent manipulations with the service was significantly reduced. A little later, the system implemented the ability to detect repeated requests from the same device. In April, mobile applications for iOS and Android were launched.
All of the above demonstrates the platform’s rather conservative approach to assessing the creditworthiness of borrowers. The percentage of approval of applications in Russia is currently just over 15%.
At the moment, the Inspeer platform provides high quality scoring during scoring and is able to detect duplicate accounts using the InsCore and OLAF services.
Ico inspeer
The creators of the Inspeer p2p platform for lending to cryptocurrency and Fiat are currently preparing to hold an initial token allocation (ICO), which will start on November 6 and continue until December 6, if it does not reach its financial goal earlier.
The overall goal of the Inspeer team is to expand its activities, transition to the global level, which is intended to facilitate the attraction of funds through ICO. Working at the global level provides great advantages, since it provides investors with the most effective protection against systemic risks compared to competitors offering investments within only one country.
The Inspeer Token, or INSP, is the first token developed with the participation of experts in the field of cryptolending, which gives the right to receive a portion of the distributed profit of Inspeer. The total stock of tokens will be 50 million pieces, which will be available for sale at a price of $ 1 for INSP.
The limited issue of tokens is the key to the future growth of their market value, especially taking into account the fact that all tokens not sold during the ICO are subject to destruction. As soon as the maximum ICO target of $ 30 million is reached, the supply of tokens will be terminated.
Inspeer encourages interested investors to buy INSPs in advance and offers up to a 15% bonus for investors in the first two weeks of ICO.
The legal team of the project has developed a unique legal tool to protect the rights of investors ICO. To ensure the maximum level of transparency and control, the company plans to attract a Dutch fund that meets the requirements of EU regulators and is managed by Byron Capital Partners Ltd.
Every 6 months, 20% of Inspeer's net profit is transferred to a special Ethereum wallet (ETH). Then the airs are redistributed between the holders of the project tokens in accordance with the terms of the smart contract. All holders are entitled to receive dividends in accordance with their shares.
Depending on the ICO results, the Inspeer team will have sufficient resources to implement the planned projects:
- $ 2 million: p2p lending in Russia and Estonia. PayDay credits. Issue of virtual cards. Cryptocurrency crediting.
- $ 6 million: opening p2p lending sites in Spain and Latvia. Issuance of plastic cards with a credit limit for regular customers.
- $ 12 million: scaling the model, opening an office in the UK. Launch debt restructuring program for regular customers. Obtaining an EMI license.
- $ 30 million: loans for small and medium businesses, cross-border payments system. Venture capital. Crowdfunding.
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