In their latest edition of Retail Banking Insider, Jane Cooper at Lafferty has a piece entitled ‘Credit Crunch a boon to social lending’. We are mentioned and quoted in the along with Zopa and Prosper.
The themes are:
- banks have increased their pricing
- banks have cut back lending
- lenders [investors] are seeking alternative vehicles with better and predictable returns
- good quality borrowers with better credit scores are using social lenders
- Zopa continues to have very low default rates
Lafferty Group - Intelligence to bank on | Newsletters
Credit crunch a boon to social lending
The credit crunch has not been bad news for everyone in financial services: the current conditions have been a boon for social lending websites that connect lenders with borrowers without the intermediation of a bank.
Our contribution was to note that lenders [investors] are seeking better returns, and that while we are aiming our service at good quality borrowers it is our intention to offer support and alternatives for those unable to qualify on the CommunityLend service.
1 response so far ↓
Alan // September 1, 2008 at 4:54 pm
Where’s the boon? I can’t lend or borrow on CL.
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