Upcoming Challenges for Retail Banks
There is a genuine sense that our high street big banks are about to enter a new era (unwittingly for some) where the old and tested retail banking model is due for a dramatic (and painful) shake-up. Sadly, this comes just as our banks are about to recover from the recent financial crisis, and many see traditional prudent retail banking as the way forward. Peer-to-peer lending is coming. I came across this term recently and was shocked (in a good way) by this idea. It is very simple: peer-to-peer lending matches people with money to those who need it, bypassing the bank altogether. And because the bank is not involved, the rates for both the lender and the borrower can be better than they can get from the bank. This is a brilliant idea, enabled by the Internet age. Only now can we seamlessly match lenders and borrowers in the masses efficiently, quickly and (safely?). And in case you haven't noticed, the idea is based on not having the banks involved. A short definition