I give you access to my users. I let you use my “proprietary” credit rating, based on their interaction with my services for you to determine risk. You loan money to them. I take a fee. They have money, they continue to interact with my services, reinforcing their “credit rating” .
In the above scenario, as long as you run a “store” on the platform, you are able to take loan from different platforms. In effect, the store is just a front, nobody ever makes money, but from creating credit lines. As long as still have sales, credit will flow.
Fundamentally, the banks holds all the credit and default risk, while the platform takes the fees (from and fees (from platform stores), while borrower gets liquidity. When there is an eventual default, borrowers lose, banks lose, platform 😁