Wednesday, October 21, 2020

Trial begins on country’s first peer-to-peer lending platform

Jun 05. 2020
Siritida Panomwon na Ayudhya, assistant governor at the Bank of Thailand
Siritida Panomwon na Ayudhya, assistant governor at the Bank of Thailand
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By The Nation

The Bank of Thailand is overseeing a trial of the country’s first peer-to-peer lending platform, before giving the green light to allow full operation of the platform.

The central bank on June 4 allowed Deepsparks Peer Lending Co to launch peer-to-peer lending between a limited number of users in its regulatory sandbox, Siritida Panomwon na Ayudhya, assistant governor at the Bank of Thailand said on Friday (June 5).

The platform matches individual lenders and borrowers and facilitates loan transfers and repayments. The digital initiative will provide an alternative way for customers to access financial services.

The Finance Ministry requires peer-to-peer lending platforms to seek permission to operate from the central bank.

Siritida said that the central bank would give priority to robust platforms that effectively managed risks, including those related to the technology used, customer privacy and responsibility towards users. Platform operators must also be aware of the debt-burden issue caused by customers who are unable to make their repayments.

The central bank will vet operators and recommend that those who meet its standards are handed licences to operate by the Finance Ministry, she added.

Consumers can check out the platform at https://www.bot.or.th/.../Pages/P2PLendingSandbox.aspx. More information about peer-to-peer lending is available at https://www.bot.or.th/.../Doc_Form/Pages/PeopleManual.aspx.

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