Payment News reports:
In a comprehensive report that, in our opinion, is a "must read" for senior bankers interested in important emerging competitive trends, the latest issue of the Online Banking Report examines in detail the person-to-person lending business being pursued by Prosper.com and Zopa.
The report’s author, veteran financial services editor and Online Banking Report founder Jim Bruene, concludes that there are indeed promising niches to be mined by Prosper and its U.K. counterpart Zopa. However, the companies will first have to fend off threats from con artists and deadbeat applicants. And they will have to win over individual lenders, who may view that the risks outweigh the available returns.
Presuming Prosper and/or Zopa make it through these unique challenges, the report predicts that within five years the total market for person-to-person lending in the U.S could surpass 100,000 loans annually, worth more than $1 billion.
The report is a must-read for any financial services executive involved in consumer credit and loan originations. The consumer behavior seen in this particular niche has broad ramifications even for the most traditional lender.