The Anonymous Widower

Is There A Case For A mini-Peer-to-Peer Lender?

By all accounts, the lender of last resort, Wonga, is successful, despite the fact that it lends money at extortionate rates to those who shouldn’t really be borrowing money.  On the other hand, the major peer-to-peer lenders, like Zopa, Funding Circle and Ratesetter, go from strength-to-strength and continue to gain plaudits from financial commentators.

If the peer-to-peer lenders have a problem, it is the perceived entry level, where potential investors like the concept, but are put off by not wanting to put several thousand pounds at risk.

So could the parameters of the peer-to-peer model be modified to borrow smaller amounts and lend it to out in dribs and drabs as payday loans?

I’m not sure, but it would be a much more ethical way of satisfying the market and possibly educating the borrowers as well.

You’re probably venturing very close to a completely automated credit union.

August 2, 2012 - Posted by | Finance | , ,

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.