Home Business Model Study goPeer Canada: Peer-to-Peer Lending Business Model Review

goPeer Canada: Peer-to-Peer Lending Business Model Review

by Mariya Parackal
gopeer lending platform

goPeer is a peer-to-peer lending company that is based in Canada. The main objective of the company is to make responsible lending accessible for everyone.

By using the latest technology, goPeer has been able to offer better rates to borrowers. At the same time, it provides access to everyday investors, including those who are non-accredited, to asset classes previously the privilege of only the large financial institutions.

Back in the last quarter of 2020, goPeer publicly announced the launch of its digital lending system. As a result, it would now become easy to connect creditworthy Canadians looking for a loan with people who might be looking for safe investment opportunities.

Peer-to-peer Lending Platform

In other words, it would be the end of the traditional lending system that was happening through the online marketplace.

With the launch of the system, people were excited to either invest or borrow. Compared to the other available systems, there was no need for only accredited investors to initiate investing. The business model of goPeer had democratized the lending procedure.

As a result, the lending facility was now within reach of all Canadians. For a long time, Canadians were looking to diversify their investment portfolio. However, they could not do so since options were limited. It was impossible to go beyond the traditional stocks. People knew that it wasn’t right, but there was no choice.

Read more: Everything you need to know about peer-to-peer money lending

goPeer Business Model

goPeer came up with the approach of providing investors access to consumer loans. It is an asset class that has a lot of potentials to provide risk-adjusted attractive returns as well as a lower duration of risk. It is way different from the other fixed-income investment options.

With the help of the goPeer approach, it is now possible for an investor to give out as little as USD 10 for each loan and still earn a monthly repayment of both capital and interest. It is similar to the process followed by banks all around the world.

The rate of interest for the unsecured installment loans, provided through goPeer, starts from 7.50 percent and is usually lower than the traditional lenders. The response was overwhelming from the lenders, especially during the early stage, as things exceeded the internal projections.

In about just two weeks, the number of loan applications exceeded two and a half million, and hundreds of investors were willing to join.

Convenience

Borrowers were happy since the process to apply for a loan request was very simple. Moreover, the requests got approved quickly. The convenience offered by goPeer was valued the most by consumers.

The platform was specifically designed from the ground-up level. It included modern serverless architecture, and the prime focus was on security and privacy.

Along with these, upcoming Technologies such as Artificial Intelligence (AI) and Machine Learning (ML) were integrated into the system to digitize the whole process as much as possible.

Therefore, the experience turned out to be quite seamless. The approach helped to condense a process that otherwise took days to complete. It completely changed the way people received the borrowing process.

Peer-to-peer Lending Platform

Priority

Businesses must consider the impact on the environment and society, especially one that is so closely related to the livelihood of several individuals. And, goPeer did the same.

It was clever enough to understand that modernization implies thinking about financial health and the impact on society of every business decision taken. The company had a strong desire to strengthen the Canadian economy and make a difference in people’s lives.

Compliance

goPeer has registered itself as an Exempt Market Dealer across all Canadian provinces. It happens to be the only company registered with the securities regulators for operating a consumer peer-to-peer lending system.

This move was an important milestone and allowed the company to work as per the securities regulator framework guidelines. Because of this, it was able to successfully cut off the banks and other intermediaries from the consumer lending arena. goPeer fully focused on eliminating the inefficiencies of the lending market and help to improve transparency.

Not only was the laborious and archaic loan underwriting process automated, but the experience was also smooth for consumers, and the rates were better. The most prominent business success of goPeer has been the lowering of credit cost and a smooth and to end experience.

The best plus model was structure around the fact that the ordinary Canadian would prefer paying interest on loans that would benefit a peer instead of a bank.

lending platform

Whether you’re going to invest in projects or lending money, you can check out some of the best platforms here: Top online lending platforms

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