My take on social lending

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Today, I have the opportunity to introduce social lending to NYSE/Euronext representatives. They attend a training @LaSer-L'Echangeur on new paradigms for retail and marketing.

As usual, I publish here or in other places all of my research (c.c, by, nc, sa).

J'espère que ces quelques slides sur le crédit de particulier à particulier vous seront utiles pour mieux comprendre la révolution sociale qui est en marche dans le secteur bancaire. Bonne lecture !

Comments

[Rédigé par: Jean-Christophe]

Oups ! There's a bug slide #13 on our english baseline. Please read: "Loans who work between family and friends" ... :)

[Rédigé par: Jean-Christophe]

@Guillaume: Thanks for your comments.

I fully agree with your suggestion slide 8: it is more complicated than described -> I'll reassess the 1st diagram in a next future.

Your open question: Right, P2PLending sites are more like CUs than banks. Loans amount = Savings amount. This looks like a commercial drawback (no leverage effect). But in fact, P2PLending players have here a very powerful model. Unlike banks, they do not need an expensive Assets & Liabilities Management system. That's pure magic. I'll be more specific about that in a next post :)

[Rédigé par: Guillaume Lebleu]

Great presentation. I can't agree more that P2P lending is going to be very big.

A few comments:
Slide 8: isn't the first diagram re: a bit more complicated: 1) multiple lenders 2) multiple borrowers. In that case the bank is really de-socializing the lending relationship. P2P lending is re-socializing the lending relationship: "where is my money going? who am I lending from?"

Open question: banks lend more than they have in deposits with the central bank. There lies a key competitive advantage w/ P2P lending IMO. In your opinion, will this privilege extend to P2P lending Web sites?