Points Flashcards
Implications of Open Banking
Enhanced competition & lower barriers to entry
Lower search costs for consumers
Less dependence on banks & credit cards
Financial inclusion
Challenges to consumer
Security risk
Lack of understanding
Erosion of relationship banking
Challenges to banks
increased competition
disintermediation
New business risk
Pressure to innovate
Implications of P2P lending
Direct borrowing & lending
cost efficient
increase access to credit
diversification
innovation
issues of P2P lending
Success depends on number of borrowers & lenders
Documentation a challenge - investors make final decision whether to lend not platform
If borrowers default - no deposit guarantee schemes
No protection if firm goes bankrupt (trust buddy 2015)