Is this your approach to peer-to-peer (P2P) lending financial social networks (FSNs)?
It is for many banks. We hear the following almost daily from banks from around the world: “P2P volumes are low, so I don’t have to worry about it. Right?”
No – this is changing. Some FSNs that support P2P lending are reporting an increase in uptake in Q3 relative to Q2 of this year, by as much as ~50% for the number of borrowers joining and ~40% for the number of lenders joining.
P2P lending is not the death of banks. However, every deposit dollar/euro/yen/renminbi/ real/rupee/ruble/etc. counts right now. Money that consumers are putting into P2P lending sites is money consumers do not have in deposits.
What should banks be doing? At a minimum, develop a strategy for social networking and P2P lending. Some banks are doing this and have a lead on the rest of the pack because of it. Don’t get left behind.
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