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The Collapse of P2P Lending Industry Provesthe Importance of Sticking to business logic

2020-11-13 09:25:07

The combination of the intermet and financial sectorrepresented by the p2P lending industry have promotedfinancial inclusiveness and improved user experience, Butrisks in them are difficult to mitigate. As a result, the rapiddevelopment of the entire p2P lending industry has becomeunsustainable

In 2013. intemet financial management suddenly became popular. With it, P2P financial management systemsalso became the most typical form of intermet-based financeat that time. however the credit nisk behind this industrrequires abundant capital as a guarantee. But this is beyondthe capabilities of most P2P platforms. Indeed, as the leading platforms collapsed, the P2P industry finally came to atragic ending

Basically, the p2P industry has gone from brilliance todestruction. This once again proves to us that operators needto respect basic business logic and the essential nature of thefinancial industry.

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