With automated credit checks and “no skin in the game,” the operating expenses in P2P lending, for example, run about one-third that of traditional banks. With that advantage, P2P lending provides the opportunity for both savers and borrowers to get a “better” deal. However, there is no such thing as a free lunch.
However, if we think about the availability of information, communications and media content, then “real time” is now already the norm. Against this backdrop, central banks in the euro area launched TARGET Instant Payment Settlement system – or TIPS for short – at the end of 2018. TIPS is able to ensure the availability of almost all institutions active in payments throughout Europe.