Spectator on facebook

Spectator on facebook

FOCUS SHORT

Slovakia discovers P2P loans

WHILE collective borrowing is a common phenomenon both overseas and in western Europe, Slovaks are just discovering peer-to-peer (P2P) lending. Roman Feranec of Žltý Melón, an online peer-to-peer lending intermediary company, describes this model of lending as people who have money available providing it directly to those who need to borrow it, the SITA newswire wrote.

WHILE collective borrowing is a common phenomenon both overseas and in western Europe, Slovaks are just discovering peer-to-peer (P2P) lending. Roman Feranec of Žltý Melón, an online peer-to-peer lending intermediary company, describes this model of lending as people who have money available providing it directly to those who need to borrow it, the SITA newswire wrote.

Banks and other traditional financial institutions are excluded from the process. Interest rates are set by lenders through auctions, which benefit borrowers by often being lower than what traditional banks offer, while at the same usually yielding higher returns for the lender. Lenders also select the parties they loan their money to, thereby reducing the risk of borrowers defaulting on payments.

The first intermediary company to spread collective loans en masse was Zopa in Great Britain back in 2005, the Pravda daily wrote. Nowadays such online intermediaries also operate in central European countries: Kokos in Poland, and Finx and Bankerat in the Czech Republic.

The processing of personal data is subject to our Privacy Policy and the Cookie Policy. Before submitting your e-mail address, please make sure to acquaint yourself with these documents.

Topic: Finances and Advisory


Top stories

We want a decent Slovakia, people chanted in squares

On the eve of the Velvet Revolution anniversary, people protested in the thousands, calling for a decent Slovakia.

Bratislava protest November 16, 2018

What we didn't know about our freedom

In 1989, we thought that once the job was done, we would only go out to the squares for Sunday walks.

November 1989 in Bratislava

The courage to fight for democracy

Authoritarian societies squander the possibilities of human achievement, of lives lived to their fullest, writes the US ambassador to Slovakia.

Illustrative stock photo

While France has Beaujolais Nouveau, Slovakia has St Catherine's wines

This warm summer with an early harvest was a blessing for young wine.

St Catherine's wines