Loan management platform provider SocietyOne has this week launched what it describes as Australia's first fully compliant peer-to-peer (P2P) lending platform.
According to the company, the new product runs on a proprietary loan management platform called ClearMatch, which it describes as a secure, online loan management solution.
It claimed the SocietyOne platform would make the personal lending market more efficient by removing the need for banks to sit between borrowers and investors.
The company said its technology platform and an online loan application and loan management solution meant it was able to operate far more efficiently than a traditional bank.
Commenting on the new offering, SocietyOne co-founder and chief executive Matt Symons said peer-to-peer lending was disrupting the traditional bank-controlled personal lending market in countries like the United Kingdom and the US.
"P2P lending is working in these countries because it offers borrowers access to better rates and provides investors with access to an asset class that has historically generated great returns for banks," he said.
"We see no reason why P2P lending cannot shake-up the personal lending market here in Australia in the same way it has internationally."
According to the company’s launch material, by applying for a personal loan with SocietyOne, individual borrowers can access up to $30,000 in unsecured loan funds.
These are provided by multiple investors who have the opportunity to build a diversified portfolio of consumer loans by investing small amounts into many individual loans posted on the SocietyOne platform, with SocietyOne handling member authentication, bank account verification, credit checking, credit reporting, funds transfers and collections.
It claimed SocietyOne represented a responsible borrowing option.
"Instead of offering revolving lines of credit and variable lending rates, SocietyOne offers fixed monthly interest and principle repayments, no monthly charges and no early repayment fees."
