Posted by How risky is a P2P platform? That is a complex question that cannot be answered in a single sentence. However, it can be analysed in a structured and systematic way. So, this is exactly what I have been doing over the past few weeks, and today I am publishing the first version of the re:think P2P Risk Score. The goal of the new model is to make the risks of different P2P platforms comparable, enabling investors to make well-informed investment decisions instead of relying on gut feeling, marketing claims, or non-transparent recommendations.
In practice, every platform is assessed across five categories: Regulation & Licensing (15 points), Financial Stability (20 points), Transparency & Disclosure (15 points), Loan Portfolio & Investor Losses (25 points), and Track Record & Crisis Management (25 points). On the blog, you can now explore the complete methodology as well as the detailed ratings for each individual platform.