There was an interesting article in the American Bankers Association (ABA) Banking Journal recently discussing p2p lending. I was very curious to see what the bankers take on the industry is now.
While it looks like banks are paying attention they see no threat whatsoever to their business from p2p lending judging by this quote:
The emergence of P2P lenders like Prosper, Lending Club, and Zopa was once thought of as a disruptive force in the financial services industry. However, although Lending Club’s loan volume has been steadily increasing month-over-month for the past year, the $20 million in loan volume it did in June 2011 is a drop in the ocean of overall consumer lending.
I completely agree with that statement – p2p lending has less than 0.1% of the consumer lending market in this country so banks need not worry for now. But if I were a banking executive I would be keeping a close eye on this industry. Why? Because it is growing at around 100% a year and if it maintains that growth rate it will become a large industry in a relatively short time.
The article goes on to validate the concept of p2p lending by encouraging banks to create their own p2p lending platform: [Read more…]