P2P LENDING: FINANCING ALTERNATIVE IN THE DIGITAL ERA

Recently, the fast development of information technologies and digitalization in numerous economic sectors has completely transformed traditional business models and caused irreversible changes. Digitalization had a particular impact on the finance and financing field. Aided by financial technologies (FinTech), it led to democratization in access to finance, especially for those entity categories that previously had limited access to traditional financial services. P2P lending is financial innovation made possible by digitalization and is alternative to a bank loan. The primary goal of this paper is to point out the potential of P2P lending as an innovative financial solution that can help borrowers (companies and individuals) meet their financial needs, especially in times of economic, health and geo-political crises and disruptions in the supply of loans by traditional financial intermediaries. Regarded from the point of view of the investment public (lenders), P2P lending is an efficient and straightforward way to invest in diverse projects, and investors can potentially expect high rates of return on invested funds. Due to all of the above, the paper will point out the many advantages of using this innovative financial solution compared to traditional forms of financing and shed light on the future and the prospect of financing companies and individuals in the digital economy.