Credit Unions: Reinvent P2P Lending

Some university professors recently researched the effect of personal relationships on P2P lending platforms. They discovered three “effects”: Pipe effect. Friends of a borrower, especially close and off-line friends, act as financial “pipes” by lending money to the borrower. Social herding effect. When friends of a potential lender, especially close friends, place a bid, a “social herding”…

Led Zopalin

P2P lender Zopa has decided that wiith the leaves falling all around (here in New England, at least), it was time it was on its way. According to Zopa’s site: While our model is doing very well in current market conditions, the US has been adversely affected in a way that just couldn’t have been…

Discrimination In P2P Lending?

A couple of economics professors have published a fascinating report, that raises a lot of questions about P2P lending. The authors analyzed all loan applications listed during a one-year period on Prosper.com. They found that listings submitted with a picture of a African-American person — or no picture at all — were significantly less likely…