So, I’m talking about peer to peer lending and a firm that’s gone bust. Disintermediation is great but:

The idea at the heart of peer-to-peer lending is great. The thing the internet has enabled us all to do is disintermediate. We don’t have to gain our classified ads along with the local newspaper any more, we get them on Ebay and Gumtree. Buying car insurance doesn’t require a visit to an office – and thus isn’t limited to the choice of those who have invested in a chain of offices. Why not bring that same force to lending and match up willing lenders with willing borrowers online instead of having to use an expensive retail branch network?

There’s nothing wrong with the idea at all, except except to think the intimidiation is the difficult bit of banking. In fact, it’s the easy bit.

” think the intimidiation is ”

The intimidation is – got that loan repayment Guv? Like Bill ‘ere to ‘ave a look at your kneecaps?

Should be intermediation of course….

19 thoughts on “Fun typo”

  1. The Meissen Bison

    Leaving the typo to one side, the issue is risk and how reliably and by whom the risk is evaluated. Unless the potential borrower can link to his credit file on his gumtree ad the potential lender will be up a gum tree in agreeing or pricing the transaction.

  2. Cuts both ways. A former colleague told me of his first day at the office at the long-defunct Slater Walker organisation, when he was sent out in a truck with the repo man. As they got out of the truck, the repo man threw him a sleeping bag. “Are we going to be here all night?” “Nah, wrap it round your arm and hold it up when they set the dogs on you”.

  3. Many years ago I looked at investing in a peer to peer lending operation as a lender.
    The return was set by the lender (ie the people investing) and you could choose to invest so much with lower percentage and so much with higher percentage (riskier) borrowers. Most (at the time) that a lender would be out on any one loan was £10.

    Perhaps other companies shared risk differently. However they do it, lending is always a risk for the lender. Overall a lender should make money, based on risk and statistical calculations.

  4. A bit of peer-to-peer intermediation might actually do my kneecap some good. Weeding the garden this afternoon painfully reminded me how old I’m getting.

  5. Noticed the media having a go at Widdecombe and trying to tarnish TBP, expect to see even more next couple of days.
    I assume that BBC reporting Trump likes Farage and wants to meet him is a negative TBP story as they are firmly locked into Trump delusional syndrome and seem convinced the rest of the U.K. agrees with them

  6. @Pcar. Bookies have stopped taking bets on TBP winning in Peterborough. Follow the money.

  7. Intimidation is THE major factor in unlicensed lending to those turned down by Provident Financial and its competitors. Whereas London Scottish (before the FSA changed the rules intending to improve things) used to send little old ladies round to collect their debts with the ultimate threat of *gossip*, unlicensed lenders who are already outside the law may choose other threats than gossip.
    FYI London Scottish with its little old ladies had decades of success before the FSA changed the rules

  8. Peterborough by-election, Thursday 6 June

    The Brexit Party machine in action

    Vote Brexit Party on 6 June

    .
    @BniC

    Weird isn’t it. Most would believe being a personal friend of POTUS was a great positive
    .

    @Kevin

    Thanks

  9. @ Martin
    One of my former colleagues is involved with a P2P lender that uses a Lloyds underwriter to insure lenders against defaults by borrowers. The forecast returns are naturally lower due to the admin cost of insurance (and a profit margin that is smaller than the admin costs).
    I expected it to boom but it has only grown modestly because (i) not all borrowers meet the inster’s criteria and (ii) the forecast return to lenders is lower than that from competitors although achieved returns are better than those of many of its uninsured competitors.

  10. ‘Buying car insurance doesn’t require a visit to an office’

    One of the functions of the insurance agent is “field underwriter,” to size up the prospective customer.

    It may be a business decision, that the cost of the agent is greater than the losses from not eyeballing the customer. Theoretically – like a holding company – a single computer could someday take over all the world’s intangible business.

  11. bloke in spain said:
    “John may find the Spanish alternative to little old Scottish ladies interesting.”

    I like that.

    But the man in the picture is not wearing a frock coat; it is clearly an evening tailcoat.

  12. ISTR an outfit called “Rentadosser” (or something like that). Their “cobradors” weren’t elegant chaps in tail coats, but malodorous tramps and the like. They were instructed to simply sit in the reception areas of debtor companies until the debt was paid – to relieve the smell presumably.

    Apparently worked quite well for a while but they finally got nailed for “harrasment” and had to shut down..

  13. Frankly the way Agent Cob’s and John MaccyD’s minds seems to work given Labour comments made in relation to residential property ownership and tenancies of it, we won’t need to worry about the options available to lenders for decisions about how and to whom to make loans. Anyone with excess cash will either have it taxed or be forced to lend it by the state at rates which favour the borrower, not the lender, and irrespective of credit risk or return for the loan.

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