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We, at iuvo, are part of a dynamic sector, which strives for innovation and we would like to work on having better market regulation. The lack of unified and officially implemented rules in different countries makes the business not stable enough and not safe enough for the users. This is how we got to the conclusion that there is a need of implementing unified good practices. If you would like to learn more about the beginning of the process of structuring unified P2P lending good practices, you can read more here.
Our goal is these good practices to become standards for the entire industry and to be shared by the big P2P portals – regardless of their business model. Here is our proposal, which already found support from the European Digital Finance Association, Bulgarian FinTech Association, and the Bulgarian P2P lending portals.
Our proposal for standards is related to all units of the functioning P2P companies.
– first – ensuring safety for our clients, thanks to the quality guarantee of our initiative. Our main goal is to keep the long-term trust of the users and to manage the growth in the sector together.
– not any less important is the selection of originators and ensuring higher transparency and monitoring of the P2P companies with external partners. In order to avoid the risk of double-listing of the same loans in different portals, we need a unified portal for tracking the portfolios of the originators where it is easy and convenient to see which loans are sold and where. Transparency is in the base of the trust of the users in this type of assets. The main priority is stimulating a higher sense of responsibility in all P2P portals and taking active participation in all aspects of the process of structuring good P2P lending practices. Higher support of the branch will help having a higher protection and safety of the clients and the portals from the disloyal practices of some loan originators.
The structuring of unified practices will unite the portals in the sector and it will help the structuring of unified rules in the FinTech market. All users, originators, and portals will play their role in building the future of this fast-growing industry.
We, at iuvo, are already implementing the bigger part of these rules and practices but they would be more effective if the entire industry implements them. This is why we have invited our competitors to become our partners in this initiative. Together we will send a strong message for personal and corporate responsibility and we will show a real commitment to sustainable growth in the sector.
Why more P2P portals need to join us?
Every P2P lending portal can be part of a wide discussion on a Pan-European and even global level. This way each player on the market can truly contribute to the structuring and implementing of good practices in the sector. We have invited leading companies in the field to actively participate in the discussion with various regulatory and legislative institutions. Thereafter to monitor the implementation of the standards together. We hope that very soon our users will be able to take advantage of the shared information and monitoring of the various P2P portals and to be more informed. Self-regulation will protect the users and the portals from fraud. Raising the standards will lower the number of unethical partners and will lead to less originators going insolvent and it will better protect the users. At the same time, it will increase the trust in P2P lending.
More trust in the sector will lead to more users on all portals.
All P2P portals that want to participate in the structuring of a branch organization and to become an inseparable part of the process of optimizing and increasing the safety in the sector are welcome and they can contact us directly.
What is next?
Expect details from our first branch meetings with leading P2P lending companies on a European level soon, as well as our proposals for the self-regulation of the sector.
