“… disruptive innovation in financial services” | Innovation & Transformation Wings blog
Nice piece from Cindy on social lending, with background, some history, and current state of a few players around the world, including CommunityLend.
‘Peer-to-peer lending is a means by which borrowers and lenders may transact business without traditional intermediaries, such as banks. The process may include other intermediaries who package and resell the loans – examples include Prosper and Zopa – but the loans are ultimately sold to individuals or pools of individuals. An enabling technology for peer-to-peer lending has been the Internet, which connects borrowers with lenders, for example through an auction-like process in which the lender willing to provide the lowest interest rate “wins” the borrowers’ loan’. Other leading models striving for foothold in Canada is Community Lend.
Incidentally, we continue to make good progress with the regulators, and still plan to launch in 2008.
