P2P Platforms Can Scale or Specialise

Diagram of Porter's five competitive forces

What makes an alternative lending platform sustainable? Borrowers, lenders, liquidity and reputation all matter. Today we look at the suggestion that two survival strategies are to scale up (get bigger) or to specialise.

There's no surprise in this to anybody who ever read Michael Porter on strategy and competition. Lending platforms are experiencing growing pains, and their business models are evolving. And the banks, who used to dominate this sector and may want to do in future, have plans of their own.