Your guide to peer to peer lending

Roundup of Social Lending News – November 5, 2011

by Peter Renton on November 5, 2011

Every Saturday I bring you the latest news from the world of peer to peer lending. These are the best of the news articles and blog posts from around the web that I shared on Twitter this past week.

The bigs news of the week was another stellar month for both Prosper and Lending Club with the latter passing $400 million in new loans on Monday. Several news sites picked up Lending Club’s press release about that milestone. The most interesting article of the week from my perspective was the VentureBeat one where Chris Larsen of Prosper discusses the broken banking system. Enjoy your weekend.

Business Insider - WOW: Peer-to-Peer Lending Site Nears Half Billion Dollars In Loan Originations

Lending Club blog (the official one) - Happy $400MM To Us!

VentureBeat - Prosper takes on Wall Street, hopes to rewire banking

Smartmoney Blog - Should I Join a Direct Investing Program?

Lending Club Blog (not the official one) - First Lending Club Loan Investments

This is London - All together now! Small investors flock to the idea of crowdfunding

Debt Free Adventure - Social Investing with Lending Club

Moolanomy – Borrowing Money from Lending Club and Prosper

Fox Business - Should You Pay Credit Card Debt With a P2P Loan?

{ 2 comments… read them below or add one }

Walter November 7, 2011 at 5:53 pm

The VentureBeat article zeros in on the good stuff:

“Larsen does, however, think there’s a role for banks in preventing their own demise, and he encourages them to make their infrastructure available to startups, as a platform for innovation.

‘“[Y]ou don’t have to just stand by and get pummeled….Even if these start-ups are tiny now and even if their stated mission is to destroy your franchise, partner with them. Technology is not going away, it’s accelerating with or without you. It’s time to stop cutting your R&D budgets and start embracing new, big ideas.”‘

I would be interested in knowing in more detail how Larsen thinks the banks can partner with these start-ups. Have you had a chance to ask anyone at Prosper (or LC) about specifics for how such a partnership might work?

Peter Renton November 8, 2011 at 7:29 am

@Walter, I haven’t asked Larsen about the specifics of this statement. But I think banks need to join the 21st century and start innovating. They have a 19th century business model and startups like Bank Simple, Square, Movenbank and even the p2p lenders are eating into their business. If I was a bank, I would be worried. Not sure what Larsen means but there is certainly a ton of room for innovation.

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