Peer-to-peer lending (P2P)
peer-to-peer lending (P2P) is the practice of lending money to borrowers who may not qualify for traditional loans. P2P is a growing market that removes large financial institutions from the lending process. Lenders serve as the "bank," and the consumer pays interest on the principal. The loans can be handled through an intermediary like The Lending Club, which is regulated by the Securities and Exchange Commission.