The Lendit 2013 Peer-to-Peer Online Lending Conference took place in New York City in June 2013, and was attended by the major International players in the P…
As a middle class American, one of the things I really like about peer to
peer lending is the democrazation of it. Sure some of us individuals have
more dollars than others, but all dollars are equal. A pure, transparent,
regulated, peer to peer system is the free market at its best.
We see our bank accounts paying a fraction of a percent yet the rates of
credit card debt remains inexplicably high. We see continued large
donations to both political parties and laws that seem to rig the system
against most of us. We experience a level of poor service and seemingly
endless fees that can only occur in a near monopoly situation.
Kudos for the venture capitalists for funding the further development of
peer to peer platforms. I’m very glad to see the development of competition
versus the near monopoly that traditional banks and credit card companies
I know it may be inevitable, but I’m very worried about Big Money getting
in on the peer to peer game. I’m worried that large infusions of cash into
the system will make finding loans much harder for the retail investor.
Your panel and others from this conference already stress growing in a
A lot of us are unhappy with the big banks – we have seen mortgage back
security fraud, robo signing, risky failed bets followed by tax payer
funded bailouts. We see that the upper management continues to reward
themselves with fat bonuses even as their companies are saved from
bankruptcy with tax payer money.
the current environment already seems to have more lenders than borrowers.
I’m worried that Big Money will have statistics packages and staff to
automate filtering, finding and purchasing loans in milliseconds – just as
is already done by artificial intelligence in the stock market.
These are tools that retail investors simply won’t have access to. I’m
further worried that in time, BIG Money will pay lower fees per dollar
invested. All of these barriers to entry would help restore the near
monopoly position that Big Money has enjoyed for decades. All these
barriers would restrict access to retail investors.
True peer to peer loans offer a viable alternative.