There was a fascinating article today on American Banker that I feel compelled to share with everyone right away. It speaks to a change that is happening in peer to peer lending right now. A change that some may think gets at the very core of what peer to peer lending is all about.
Institution to Peer Lending
I am talking about an evolution away from a pure “peer to peer” space where money changes hands between individual investors and individual borrowers. It is slowly evolving to a space where a mix of individual investors and large institutional investors lend money to individual borrowers. Yes, institutional investors such as pension funds, hedge funds, and asset managers are investing large sums of money now in peer to peer lending.
Here are two quotes from the article that make it clear what the CEOs of Prosper and Lending Club think about this change. [Read more…]