Building a Peer to Peer Lending Platform

Background: Micro-finance, for all of its criticisms, has changed the face of global credit markets. By leveraging social capital and group collateral, micro-finance institutions have been able to greatly expand the pool of credit-worthy individuals.  A relatively new entrant to this market, peer-to-peer lending strives to expand this market even further by using individual social capital to underwrite risk of indiividual loans

Scope: Busara was engaged by a private company seeking to launch a novel peer-to-peer lending product to help design the product, increase repayment rates through behavioral nudges, and rigorously test potential product configurations through a large scale pilot. Busara conducted extensive qualitative research to inform the design of the product, incorporated behavioral adjustments to the on-boarding and user experience process, conducted the product pilot activities, and then analyzed the data to develop a set of product refinements and scale recommendations.