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….