Although Chinese P2P industry is still on the rise, the public is becoming increasingly cautious in investing on P2P platforms as more and more users fell victims to scams. Soul Htite, co-founder of Lending Club and its Shanghai-based counterpart Dianrong, shared with us his insights on the differences between the U.S. and Chinese P2P lending industry, risk control measures and prospects of the sector in China in a backstage interview during TechCrunch Beijing last week.

TechNode: What’re the differences between Lending Club and Dianrong, as well as the U.S. and Chinese P2P industry?

The two platforms are similar in business model, but are different in a lot of other aspects. In terms of targeted clients, firstly, the U.S. users tend spend borrowed money in consumption, like attending parties, while Chinese users will invest borrowed money in education. After years of development, the U.S. investors are very conscious about the investment risks. On the other hand, Chinese users may be more concerned about the yields rather than the risks at the beginning of their investment. “We will train Chinese investors by warning them about investment risks.”

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Emma Lee

Emma Lee is Shanghai-based tech writer, covering startups and tech happenings in China and Asia in general. We are looking for stories related to tech and China. Reach her at lixin@technode.com.