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Banks Getting Knocked Off Balance By Surge Of P2P Lending's Popularity

Peer to peer p2p vs banksFrom www.smh.com.au -

If you think it sounds like a pretty good deal, you are not alone.
Borrowers and savers in the United States and Britain have been flocking to P2P platforms, which are able to offer more competitive rates by cutting out the costs banks create as middlemen.
Equity investors are getting pretty excited, too. Shares in the world's biggest provider, Lending Club in the United States, surged 56 per cent on their debut before Christmas, and the company is valued at US$7.8 billion.


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Editor’s Notes:

  • The sharp rise of peer-to-peer lenders like Prosper and Lending Club gives indisputable proof of how strongly technology-based businesses can give everyday people the ability to stare down the entrenched powers we've grown to fear, even the banks.
  • P2P lending still hasn't completely taken over, unsecured personal lending makes up only about 5 to 7 percent of overall bank profit.
  • We can all expect Australia to follow America and the UK's lead and turn heavily towards alternative lending.

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Peer to Peer Lending and Private Lending Info