THE FUTURE OF LENDING: DISRUPTIVE POTENTIAL OF PEER-TO-PEER PLATFORMS AND DIGITAL CREDIT IN RESHAPING TRADITIONAL BANKING MODELS

ABSTRACT The rapid growth of financial technology (Fin Tech) has significantly transformed the financial services landscape, particularly in the lending sector. Peer-to-Peer (P2P) platforms and digital credit systems are emerging as powerful alternatives to traditional banking institutions, offering efficiency, accessibility, and inclusivity. This paper examines the disruptive potential of these innovations, their role in reshaping lending practices, and the challenges they pose to conventional banking models. The study further analyzes regulatory implications, consumer adoption, and long-term sustainability of these platforms. Findings suggest that while P2P lending and digital credit enhances financial inclusion and efficiency, their widespread adoption depends on robust regulatory frameworks, trust-building mechanisms, and integration with sustainable financial practices. Keywords: Fin Tech, Peer-to-Peer Lending, Digital Credit, Traditional Banking, Financial Disruption, Financial Inclusion.