The worldâ€™s peer that is largest to peer lending market may soon vanish
I had no idea that China was a hot bed of peer to peer (p2p) lending when we started LendIt in 2013. But here I discovered myself chatting with a few leaders through the Chinese p2p financing industry at initial LendIt right straight back in June 2013. We did no marketing in Asia however, many got wind regarding the traveled and event to new york to be here. It absolutely was then that i consequently found out the massive scale the industry had currently accomplished into the worldâ€™s many country that is populous.
We first published about the Chinese lending that is p2p later that 12 months and introduced the western to CreditEase, the business that has been the biggest p2p lending platform on earth. On the next year or two the industry thrived with a large number of platforms starting as well as the total loan amount skyrocketing to over $150 billion in 2015, that was four times the mortgage level of 2014. In hindsight, we ought to have understood that sort of development in a financing industry isn’t only unsustainable, it really is very dangerous.
Asiaâ€™s Biggest Ever Financial Scandal
We got the inkling that is first something had been not exactly right when Asia had been rocked because of the biggest economic scandal with its history. Ezubao, certainly one of Chinaâ€™s largest p2p financing platforms, collapsed since it had been revealed the business enterprise had been absolutely nothing more than a more elaborate Ponzi scheme. Continue reading “The Meteoric increase and Spectacular Fall of Peer to Peer Lending in Asia”