Alternate Finance Market : How Does it Fit into Traditional Finance Landscape?

Alternative channels of finance have the capacity to fill the gap where formal finance is unable to reach or has proven to be inefficient. It also has the potential to soften the lending rates as a result of lower operational costs and enhanced competition with the traditional lending channels. Therefore, the importance of these methods of financial transactions should be recognized. While financial innovations and technological advancements should not be stifled, the stability of financial system and interests of depositors ought to be protected. The balance of advantage lies in developing an appropriate regulatory and supervisory toolkit that facilitates an orderly growth of this sector