The Personal Touch From Sir Mervyn
This story reported on the BBC, is a good one, as it shows the tensions between the Bank of England and the so-called retail banks well. The guy who wanted to buy a van, sums up the banks as follows.
But Mike Benson is unimpressed, and is thinking of turning to other lending schemes which do not involve banks, like peer-to-peer lenders.
“There will come a point when we don’t need the banks. And sayonara to the banks!”
That is why he eventually decided to buy his van with his own cash.
I wonder if any of the peer-to-peer lenders have contacted him or as they tend to be low profile, he’s contacted any himself!
Sir Mervyn’s letter may be typical of the Bank of England. I once wrote to another director, who was writing a report on a particular subject. Not only did he reply, but he put some of my thoughts in the report and when it was published I received a copy, which acknowledged my contribution in an Appendix, along with all the others who’d done so.
Would you have got that response from Lloyds, Barclays or RBS?
The Anonymous Widower 
Great to see this post! I follow the peer-to-peer lending market closely (at http://www.persontopersonloans.org) and I am constantly surprised that this method of funding is not taking off – and in particular that banks are not threatened by these methods and doing anything to stop motivating people to look for other choices! I’m glad to read what Mr. Benson said!
Comment by alanjacobson | April 14, 2013 |
I assume you’re across the pond, judging by the WordPress whois. Peer-to-peer is really taking off in the UK and the banks have done little to stop lenders such as Zopa and Funding Circle. The government has even put several millions into the peer-to-peer lending markets for lending to SMEs. Zopa were effectively banned from operating in the States. Were the banks behind that, as they know the way the wind is blowing?
I’ve never seen a comment about peer-to-peer lending by a UK bank, but you get lots of positive comments from serious financial commentators.
I told my stockbroker to never buy me any bank shares! In my view they’re going the way of the Norwegian Blue.
Comment by AnonW | April 14, 2013 |