by Kanika Agarwal

Peer-to-peer lending, in less than 4 years since inception, has become a highlight of the financial industry in India. More than two dozen p2p companies, highly concentrated on personal loans, have risen in India in the last year or so. Everyone is keeping a hawk’s eye on any news related to the much-needed regulations and guidelines expected to be announced soon by RBI. This, no doubt, will not just boost the Indian economy by a notch but for the 30 oddd P2P lending platforms currently operating in India, the ocean will turn red. The real question is; which companies will survive this competition in the long run?

‘Start With Why’ by Simon Sinek evaluates why some companies survive even as many fail miserably, irrespective of the resources at their disposal. For any organization, a clear vision and a strong mission is a good way to kick off the ground. However, when it comes to surviving and succeeding in the long term, is it enough?

The organization which knows why they are in this business and do not deviate in the long run from that core proposition are the ones which survive. There, that’s the answer. When it comes to P2P Lending marketplace, all organizations know why they are in the business:

WHY à To help those in dire need, avail fast and easy credit (personal or business loans) and at the same time help those with extra cash earn better rate of returns on their idle money. The platform has to help in churning the funds better, thereby boosting the economy while ensuring that personal goals of customers – whether its credit-strapped borrowers or fund-flush lenders – are met.

With this, HOW becomes clearer to the organizations à Transacting ‘extra cash’ to ‘need cash’ and repaying from ‘needed cash’ to ‘earning cash’ through digital mediums. Peer-to-peer lending is making money transact from lenders to borrowers for personal or business loans and back with interest.

WHAT is the question which will help the organization in the short-run. Considering the trend being followed by all P2P Lenders is to make the personal loans process more automated, easy and quick – from registration to disbursement to collection; the differentiating factors will be the ability and adaptability of technology used by each player and which company can make their why reach to the customers in a faster, safer and reliable manner.

In the long run, the organization which can carry the ‘WHY’ closer to the ‘WHAT’ and provide convenience to users will succeed. Rest will fall off the bandwagon along the way!

References: Start With Why, Simon Sinek