Peer-to-peer loans
I am excited about peer-to-peer loans. Following on the heels of the Nobel Prize for microlending and the phenomenon of worldwide connectivity provided by the internet, I believe that peer-to-peer loans are certain to be successful.
The question for me is: what scale will peer-to-peer loans reach? Will loans remain in the $10,000 range or so, or will we gradually start to aggregate these smaller loans and cut out the middlemen who are making so much money at merchant, commercial and investment banks? Middlemen are like weeds, of course, always popping up and seemingly impossible to eradicate, so I doubt we will ever crowd them out completely, but one can hope.
Zopa is an example of a company providing peer-to-peer online loans. People borrow from, or lend to, other members of the network, cutting out the need for a bank and their profit margins. Zopa is soon set to go live in the US, so if you are an American interested in the opportunity to lend money at a relatively high interest rate, check it out.
Link: online loans
The question for me is: what scale will peer-to-peer loans reach? Will loans remain in the $10,000 range or so, or will we gradually start to aggregate these smaller loans and cut out the middlemen who are making so much money at merchant, commercial and investment banks? Middlemen are like weeds, of course, always popping up and seemingly impossible to eradicate, so I doubt we will ever crowd them out completely, but one can hope.
Zopa is an example of a company providing peer-to-peer online loans. People borrow from, or lend to, other members of the network, cutting out the need for a bank and their profit margins. Zopa is soon set to go live in the US, so if you are an American interested in the opportunity to lend money at a relatively high interest rate, check it out.
Link: online loans
posted by jerry at 8:11 AM
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