Follow us on
Difitek
  • News
  • What We Offer
  • Contact Us
  • Visit our Site

How Does Direct P2P Finance Compare With Capital Markets?

2/24/2014

 
Picture
“Driven by technology on the supply side and the financial crisis on the demand side, an investment revolution has begun.”
Andrew Haldane, Executive Director, Bank of England

Direct financing, such as equity crowdfunding and P2P lending, as well as capital markets act both as an information bridge and a conduit of financial flows between a large number of investees/borrowers and a large number of investors/lenders who receive a return for their investment. But the similarities already stop there. The design and characteristics of those two marketplaces are profoundly different.

Picture
The table below attempts to illustrates differences in a simplified way.                         




































                                                         

It is
becoming more and more obvious that capital markets and the banking system institutionalise irresponsibility and is unsustainable.  The nascent market of direct finance promises to deliver a better, intrinsically social system with embedded accountability.  It reconnects people with the reality of their money and empowers them to create a world they want to see.

Direct finance is far better aligned with the real economy of the 21st century, which is increasingly decentralised. A trend which is reinforced by an growing start-up culture which is fuelled by a familiar driving force: crowdfunding. Together with complementary currencies such as digital money and other emerging innovations in particular in the payment sector one can truly say that an investment revolution is on its way.


Photo Credit: Rafael Matsunaga: https://bit.ly/p/JmU2w


Picture
About the author - Rex Kempcke

Rex is an innovative banker with more than 15 years experience in retail banking, treasury and commodity trading at Commerzbank, J.P. Morgan and ABB Financial Services. Through his passion for entrepreneurship and new markets he got involved during the dot-com era in building up a business incubation unit for ABB, subsequently spinning off a company which pioneered the implementation of the European emissions trading scheme. He continued his career in the climate change sector first by joining EcoSecurties, a leading startup company in developing carbon reduction projects worldwide, and more recently as director in the environmental markets team of BNP Paribas.

Rex strongly believes that crowdfunding will cause a paradigm shift in the financial service industry and that it will make a significant contribution to the transition towards a sustainable economy. Born and raised in Germany, he gained a qualification as banker and a Masters degree in economics from University Hamburg. He currently lives in the UK with his wife and two daughters.





Comments are closed.

    RSS Feed

       

    Categories

    All
    All Sectors
    Americas
    API
    Asia
    Australasia
    Clean Energy
    Crowd Valley
    CTO Blog
    Difitek
    Equity Investment
    Europe
    Events
    Expert Analysis
    Fintech
    Global
    Interview
    Lending
    Local Funding Network
    Marketing
    Market Watch
    Oceania
    Platform Updates
    Presentations
    Press Release
    Real Estate
    Regulations
    Russia
    Social Capital
    Webinar

Back to Difitek website


Copyright 2018 Crowd Valley Inc. 
All Rights Reserved.

Crowd Valley does not engage in the offer, sale or transfer of securities and securities may not be offered, sold or transferred via this website. Securities may not be offered or sold in the United States absent (i) registration under the U.S. Securities Act of 1933, as amended (the Securities Act) or (ii) an available exemption from registration under the Securities Act. Please consult legal counsel in the appropriate jurisdiction before offering, selling or buying securities as registration under the Securities Act or similar state legislation may be required.

Please note that the provision of the information on this website does not create and is not intended to create a relationship between Crowd Valley Inc. and any other person. You are not and should not regard yourself as being a client or customer of Crowd Valley Inc. and must not expect Crowd Valley Inc. to have any duties or responsibilities to you, act for you or your clients, or be responsible for providing protections afforded to customers or yourselves or be responsible for advising you in any respect.