Moni launched in Finland promising to democratize lending—connecting borrowers directly with individual lenders, cutting out banks. The model attracted thousands of lenders seeking higher returns than traditional savings accounts. For a time, it worked. Then borrower defaults surged.
Company Data
- Founded: ~2014
- Country: Finland
- Failed: ~2018
The fundamental flaw: individual lenders couldn't properly assess credit risk. When defaults rose, lenders fled, creating a liquidity crisis. The platform lacked the capital buffers traditional banks maintain for exactly this scenario. Small lenders lost significant portions of their investments.
Key Lesson
Disintermediating banks means taking on their risk management responsibilities. P2P platforms must have robust credit assessment—not just matchmaking technology.