When I want to take a loan for my business, I don’t want to wait so long for approval. I want my money now.
Banks are slow, and P2P lending platforms are fast becoming the way forward. People can now easily borrow and lend money to others without middlemen receiving a massive cut or the loan disbursement taking forever to happen.
But despite these improvements, the coast still isn’t clear. Some P2P lending platforms are still clunky, loan processing is still slow, and Mr. Fraud still says hello from time to time.
How can we fix this and improve a system that is so beneficial to millions across the world?
The answer is automation. Everything gets better with automation. It isn’t just a “cool” add-on; it effectively takes care of security, payment approval, communication, and a host of other features that I’ll show you as we proceed together. Automation makes a system filled with so much potential more secure, smarter, and faster.
Now, the question isn’t whether we need automation in P2P lending; it’s how fast we can implement it to improve the system for everyone. It’s time to find out how.
5 Surefire Ways To Improve Peer-to-Peer Lending With Automation
- AI-Powered Credit Scoring Systems
Losing money will always shake the bravest of hearts. From me to you: The lending business is risky! Thankfully, AI has found a way of checking if someone is creditworthy through the AI-powered Credit Scoring System.
Imagine a system so precise, it can scan through 350,000 real-world loans, decode 112 subtle borrower signals, and process over €915 million in lending decisions—without breaking a sweat. That’s exactly
And among them, one model stood out—the extreme gradient-boosted Cox model—not just matching traditional credit scoring methods... but quietly, powerfully surpassing them. What if your lending decisions could be this accurate, this intuitive, this... unstoppable?
You can now analyze thousands of data points and interpret even the most minor details that even experts (I dare say that) might miss. We’re talking numbers, patterns, and even psychological factors of potential customers.
Many other companies use machine learning models like recurrent neural networks (RNNS) that would do a very meticulous tracking of the financial behaviour of thousands of potential customers. You can even track when a customer is struggling financially. So, if Mr A paid his light bills promptly between January and May but slowly began to default in subsequent months or make late payments, an AI-powered scoring system would flag that and would analyze that for your array of data.
What point am I driving at? Automating your P2P lending business with an AI-powered credit score system will lead to an accurate and measurable risk assessment. And when it comes to the financial business, these accuracies would reduce the risk of you losing millions to bad loans.
- Automated Customer Verification System
P2P lending business platform or not, in whatever you do, get your onboarding right. I repeat, get your onboarding right. The first place users get to bond with online platforms is the onboarding phase. Make sign-up easy, and they will stay. Make it complicated, and they bounce before they get to the lending part.
KYC, also known as Know Your Customer, is an inevitable process for users and P2P lending companies, even though it can be so stressful. But we can’t shift blame; it's a good way to root out the weeds from the plants and verify borrowers’ identities.
Now, things have improved through Digital KYC solutions. You can automate your P2P lending systems with this technology to simplify verification procedures. Since things are now automated, identity checks are more secure, and many users can now log into government databases via third-party APIs to upload their documents. And, of course, you can trust this technology to flag any suspicious activity in seconds. You are happy. Your team is happy, and the most important part, your users are happy.
- Robotic Process Automation In Loan Dispensation
You’ve promised your users the best loan services. It’s time to keep your word. If you have used automated customer verification systems during onboarding, then you are on the right part. Now, it’s time to get down to the crux of why your customers are here – the loan. The money. Future-forward P2P lending companies are adding Robotic Process Automation to their backend
to work magic behind the scenes. Let me show you magic: loan processing in less than 5 minutes, accurate payment scheduling, and automatic payment reminders for your users, all handled by the Robotic Process Automation. Automated pop-up reminders are sent to reiterate upcoming payment dates and due payments. If that doesn’t sound like magic to you, what will?
The RPA bot works round-the-clock to ensure your customers’ loans are processed, tracked, and updated accurately and swiftly.
- Using Robotic Process Automation in Customer Service
Customers aren’t the only ones that should always be right, business owners can be, too. That’s one of the many ways that Robotic Process Automation will reshape your P2P lending business.
When dealing with your customers, you must be supportive, knowledgeable, always online, and never tired. How would you even include these requirements in your Virtual Assistant job description? You most likely would get crickets, because no one can be all that, except a…..bot. An RPA can be that. The very own VA that you can’t find anywhere. It steps in as an online chatbot that can give instant answers, guiding your customers at any time of the day with any resource they need.
Since this chatbot is AI-powered, it can read tone, then proceed to provide responses that are personalized based on the mood of the user. If a business’s customer service personnel made me feel calm while providing me with solutions that I was restlessly looking for, I’d definitely be happy to use that brand again.
Now to the best part, the multilingual features. The RPA technology can empower the automated chatbot to access various languages across the world. Do you know what that means for your lending business? Anyone around the world can utilize your services, and if you haven’t made your business global, here’s the sign to.
- Using Blockchain Technology For Enhanced Security
Trust. That’s the biggest currency when it comes to the P2P lending business. There are so many trust questions in this business. Questions like :
- How do I know that this customer is legit even when they pass all the security protocols?
- How do I protect my lending fintech from advanced hackers and fraudsters that mean serious business?
The questions can be endless. However, there’s one answer.
The answer is in Blockchain Technology. The Blockchain technology is called a trust machine. It creates a system where the centralized database and transaction is recorded on a decentralized system that no one can secretly change. Fraud is a nightmare for any P2P lending platform, thankfully, the blockchain technology makes it hard for any shady business to occur because it uses cryptography and a network-wide consensus to verify every single transaction.
Another huge way blockchain can improve P2P lending is through identifying verification. People steal other people’s identities, borrow huge amounts, of course, abscond, and leave innocent individuals and P2P lending platforms to deal with the debt. With the help of blockchain technology, borrowers can now use digital identities that are verified through cryptography proof for ID checks. This means that your customers' information is secured on the blockchain and can prove any information without revealing personal details. In the end, blockchain technology ensures that your P2P lending platform is practically unhackable and can thrive as it deserves to.
Final Thoughts
The message is clear: automate everything you can. The P2P lending industry is lucrative and it’s moving fast. If you want to stay ahead, automation improves how you do business..
At this point, if you’re on the fence about embracing this innovation then you’re leaving money on the table. It’s time to take the bull by the horns and make your P2P lending company not just easier, but better. When the profits start rolling in, you know where to find me.
Winks.
