P2P lenders face big test amid virus outbreak

Despite added risks on horizon, players say fintechs are not necessarily at a disadvantage

Published Wed, Feb 26, 2020 · 09:50 PM

Singapore

FINTECHS such as peer-to-peer (P2P) lenders have burst onto the scene in the past few years to address a credit gap that they say is untouched by banks.

Now, with the ongoing virus outbreak threatening to break small- and medium-sized enterprises (SMEs) struggling with cash flow, supply constraints, and dwindling sales, such newfangled platforms may see their biggest test to date when it comes to their lending models.

Checks by The Business Times showed that P2P platforms have already adapted to the heightened risk environment. On the investors' front, some investors have diversifi…