P2P Lending Structure

This question tests whether you understand a basic alternative lending model that is often relevant in Financial Institutions Groups interviews. A strong answer should explain the roles of borrowers, lenders, and the platform that connects them, along with why this structure can be more efficient than using a traditional intermediary. Interviewers ask this because FIG candidates are expected to understand how financial intermediation works, how technology is changing credit markets, and what business models sit between consumers and capital providers. It also helps show that you can distinguish between formal lending platforms and broader payment apps that move money between users.