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Peer-to-peer lending platforms

Peer-to-Peer (P2P) platforms help lenders finding consumers need financing. P2P license issued by EU member-state regulator. 

Peer to Peer (P2P) lending platforms allow lenders to find their consumers avoiding traditional bank or another financial institution financing. Consumers around Europe consider P2P lending as the modern alternative to traditional bank financing especially in the field of smaller consumer credit.

Through Peer to Peer lending platforms natural persons provide or promise to grant consumer credit to credit recipients. Lenders in P2P platforms may expect higher interest compared to bank deposits or other traditional financial instruments.

Fast and easy licensing, friendly regulation

The latest amendments to the Lithuanian Consumer Credit regulation allow fast and easy licensing of P2P lending platforms ready to provide services for the lenders looking for investments and retail clients looking for financing. It takes a bit more than 1 month to be included in the list of Peer to Peer platform operators. Bank of Lithuania (Regulator) currently considered as one of the most business-oriented and progressive regulators in the European Union (EU/EEA).

Passporting of Peer to Peer (P2P) and Consumer Credit licenses in the EU

Peer to Peer platform operator’s license issued by the Bank of Lithuania – EU member state financial regulator. Pan-European passporting of Peer to Peer and Consumer Credit services within the EU/EEA area can be achieved by combining a license with Electronic Money Institution, Payment Institution or other passportable license.

Peer to Peer lending platform operators finance consumers only. For crowd business financing Crowdfunding platform license needed.

List of the licensing documentation submitted to the Regulator for P2P licensing:

  1.  A written request.
  2. Information from the public register on the applicants company data. The Bank of Lithuania may ask for the additional information.
  3. Information managers and shareholders.
  4. Information on compliance to the authorized capital.
  5. Business continuity plan (Business plan).
  6. Consumer credit recipient’s creditworthiness assessment rules.
  7. Information regarding the records and information systems used to determine the credit recipients’ creditworthiness.
  8. The list of intermediaries who act on behalf of the company, if the company plans to use the services of consumer credit intermediaries.

A business continuity plan and Rules for assessing the creditworthiness of borrowers are the most complex documentation to be prepared during the licensing procedure. The plan should provide measures and procedures ensuring that Consumer Credit Providers activities carried out continuously, without interruption, ensuring a smooth administration of the Consumer Credit contracts and continuing contractual obligations fulfillment in cases of unforeseen circumstances. Being one of the most experienced financial licensing advisor ECOVIS ProventusLaw assists in the preparation of the business continuity plan, other licensing documentation, accounting, reporting, audit, and setting up all Peer to Peer platform operators business.

Related information:

Consumer Credit Provider licensing

Crowdfunding licensing