England: Online P2P Lenders Could Replace Banks.

Andy Haldane, Head of Policy at the Bank of England said in a speech in New York yesterday that: “small peer-to-peer lenders like Zopa and Funding Circle could in time replace high street banks”.

This comment reflects just how seriously the Bank of England is taking the new and rapidly growing peer-to-peer finance sector.  

Mr Haldane said the impact of these firms could be revolutionary, saying:

“At present, these companies are tiny. But so, a decade and a half ago, was Google. If eBay can solve the lemons problem in the second-hand sales market, it can be done in the market for loans”.

In response, Giles Andrews, cofounder and CEO of Zopa – the world’s first online peer-to-peer lender – said:

“Andy Haldane’s comments are very welcome as further evidence of how far this new force for good in finance has come over recent years.  As we have said for a long time, it is innovative new alternatives such as Zopa that are going to shake up the banking sector far more effectively than just adding more banks doing the same old things.”

“Complete replacement of high street banks is probably unlikely, as there might be some things no one else can do better. But Zopa has proven that as far as personal loans and savings are concerned, peer-to-peer finance offers a better solution – by design.  And there are other parts of what banks do that peer-to-peer providers could do better. Even mortgages.”

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About Steve King

iPeopleFINANCE™ Chief Operating Officer. Former CEO of Endymion Systems, Inc. a $36m Information Systems Services company. Co-founder of the Cambridge Systems Group, the creator of ACF2, the leading IBM Mainframe Data Center Security product; acquired by Computer Associates. IBM, seeCommerce, marchFIRST, Connectandsell alumni. UC Berkeley alumni. View all posts by Steve King

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