Linked Finance being a peer-to-peer lending financial firm means that they are operating on a revolutionary platform. The ‘P2P’ concept is one that is barely over ten years old. Fueled by technology, many financial experts claim that the peer-to-peer lending platform will have an immense impact on the financial world. Being so young and reliant on technology, Linked Finance amongst other firms within the P2P lending market have a high potential for growth.
One of Linked Finance’s major competitors is Grid Finance. Having a little background knowledge on Grid Finance, I know they operate on almost the same concepts and business models as we do except Linked Finance has an advantage. Linked Finance is Ireland’s largest P2P lending firm; therefore they are able to give out larger loans. When businesses are looking for upwards of 150,000 (Grid Finance will only lend 150,000 maximum) they will come to Linked Finance because not only is Linked Finance trusted, but also they know they can likely get the funds they require. However, if a business is looking for a small loan Linked Finance will likely run into competitors. They must compete with other companies such as Grid Finance to offer the lowest interest rate to the borrowing businesses.
Being competitors in the same industry, Linked Finance and Grid Finance face the same challenges that occur within the peer-to-peer lending platform. For example, they must stay current with all new technological advances or else they could lose a competitive edge. Another challenge both businesses have is accumulating investors. Linked Finance and its competitors must be able to fund loans in order to make money. That being said if they don’t have enough funds to lend then they will likely lose customers and could potentially go out of business. These two challenges that are faced within the peer-to-peer lending field are ones that are incurred every day, and must be continuously addressed and improved upon.
The P2P lending industry is an attractive field to be in for many different people. The reasons being that because it’s so new and has such a high potential for growth, entering in the peer-to-peer lending market now would likely mean that you have a higher chance at being successful. Additionally, because P2P lending incorporates technology in almost every aspect of their business it makes it so this business model is always current with the newest technologies and other aspects of the financial industry. All in all, Linked Finance and peer-to-peer lending has taking the financial industry by storm and will continue to make great strides and progress growing within this industry.