Is eBay Banking the Way Forward?
Social lending has been likened to eBay banking because it is a facilitator that brings borrowers and lenders together in the same way the eBay brings buyers and sellers together.
The borrower will put details of how much they can lend and how much for. The lender will put details of how much they want and how much interest they want to pay and the social lending software will connect them. They will then both get what they are after.
But is this going to take over in the same way that eBay and online transactions have taken a lot of business form shops? There are some people that do not trust online transactions and it is unlikely that these people will ever even use eBay let alone use a social lending site. However, some people enjoy online investments already and so they are likely to get involved.
It does seem like something which is likely to grow, especially with is getting more dependence on everything technical and online. At the moment, although social lending has been around for a while, it is not something that lots of people take part in. However, if it does grow, by getting the right sort of marketing and telling a lot of success stories, then it might just be something which many people are taking part in soon.
With many people struggling money wise at the moment then the lure of a cheaper loan could tempt them. With others not know where to invest their money then the interest rates available might tempt them. It certainly has potential and with people being far less worried about online transactions, Internet banking and things like that, it is likely that many people will not be put off by the fact that it is all being dealt with online. In fact many will see this as an advantage as they will not have to move form in front of their computer screen.