Eight or nine platforms are collaborating on standardised metrics for the peer-to-peer lending sector, with plans to launch the first stage of their framework in the fourth quarter of this year.
Shojin Property Partners’ chief executive Jatin Ondhia said he is working with other platforms to come up with standardised risk metrics and terminology so investors can compare products from different platforms and diversify.
Speaking at the P2P Investing Summit, a virtual event hosted by Peer2Peer Finance News and AngelNews, Ondhia said that if platforms all use the same fundamental technology, investors would be able to look at their investments all in one place.
As regulation for P2P differs globally, Ondhia said he wants to produce a code of conduct of the highest standards which the group of platforms collaborating together will adhere to. He said this would encourage investors to diversify from platform to platform within the group.
“A number of things will be happening over the next few years,” Ondhia said.
“The collaboration is going to happen, it has already started, it’s about bringing alternative investments into the mainstream.
“Over the next three to five years there will be developments, it’s not the tech that has to move, it’s the way the individual platforms work to give investors the best user experience and journey as possible.
“There are about seven or eight other platforms working on a standardised product. We opened up slightly wider initially. We started working two years ago and stopped when Covid hit.
“A number of platforms also feel they have made more progress and are not quite ready to collaborate and want to do their own things but ultimately we believe those platforms would have to join the collaboration if it becomes the standardised way of doing things.
“We’re working with some top players and hopefully the first stage of this will launch in the fourth quarter.”