Peer-to-peer lending platforms should work to improve their security systems, as consumers become more worried about their online safety when spending and investing money.
According to Experian’s latest Global Insights Report, increased online activity has led to heightened concerns about online security, with 42 per cent of consumers more concerned than they were 12 months ago.
This concern is highest among high income groups, which are also the most engaged online.
However, the majority (84 per cent) of consumers said they are confident that the businesses they transact with online will address their security concerns.
P2P lending platforms can form a part of consumers’ online activity, serving everyday retail investors as well as sophisticated and high-net worth lenders.
As security fears grow, Experian has urged online lenders and other fintech firms to keep on top of their financial risk controls.
“Many consumers are more concerned now about the security of their online transactions and activities than they were a year ago,” said David Bernard, senior vice president of strategy and operations for global decision analytics at Experian.
“The past two years have given way to a digitally savvy consumer, who have a growing awareness and understanding of advanced, frictionless security methods.
“Consumers seek to make their work and lives easier and safer.”
A spokesperson from P2P lending platform Invest & Fund agreed that platforms should keep their controls under review and strengthen them when necessary.
“We have already adopted fintech solutions to assist with client onboarding and ongoing screening; as a result, we believe that our procedures are now more robust, more efficient and more user-friendly,” the spokesperson said.
Meanwhile, Nicola Horlick, chief executive of Money&Co, said the P2P platform conducts anti-money laundering checks on new lenders and updated checks annually on existing lenders.