P2P Finance: Difference between revisions
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'''P2P Finance = generally refers to person to person lending without the intervention of banks.''' | |||
P2P Finance = generally refers to person to person lending without the intervention of banks. | |||
Revision as of 04:03, 23 November 2006
P2P Finance = generally refers to person to person lending without the intervention of banks.
Examples are Zopa and Prosper. Kiva is a P2P-version of microfinance.
Examples
Zopa
Zopa (Zone of Possible Agreement): the new company is an amalgam of a number of business philosophies. It is where eBay meets credit unions by way of easyJet, the peer-to-peer movement and Betfair. You can lend up to £25,000 through Zopa and your money is divided among 50 borrowers (who have already been screened to ensure they have good credit ratings) to minimise risks of default. (http://www.guardian.co.uk/economicdispatch/story/0,12498,1435623,00.html}
Zopa is at http://www.zopa.com/ZopaWeb/.
Prosper.com
The new kid on the block, in the U.S. is Prosper.com. There is an interesting discussion on Omydhyar Net about the potential for charitable giving of Prosper-based lending groups, as well as of the market-driven practices, at http://www.omidyar.net/group/foodchain/news/124/
An analysis of the first nime months of Prosper, good for $20m in loans, at
http://futurememes.blogspot.com/2006/11/p2p-finance-does-it-work.html
More Information
See the related entries on Social Finance and Affinity Markets, as well as on Peer to Peer Exchanges