Will peer-to-peer lending kill the banks?

Peer-to-peer lending is a US$3bn global industry, but has been slow to get off the ground in Australia, mainly due to regulatory restrictions. But, with the regulators easing their grip, it's now reached our shores – and the banks have a lot to lose.Peer-to-peer lending – where you borrow money directly from another individual through an online intermediary, but bypass the banks – is riskier than traditional lending but the industry’s growth worldwide has been explosive (see below).[[{"type":"media","view_mode":"media_large","fid":"310","attributes":{"class":"media-image aligncenter wp-image-10909 size-large","typeof":"foaf:Image","style":"","width":"647","height":"320","alt":"P2P lending graph 1"}}]]Peer-to-peer lenders advertise lower interest rates and higher levels of customer service than ordinary banks, and investors gain access...

Peer-to-peer lending is a US$3bn global industry, but has been slow to get off the ground in Australia, mainly due to regulatory restrictions. But, with the regulators easing their grip, it's now reached our shores – and the banks have a lot to lose.

Peer-to-peer lending – where you borrow money directly from another individual through an online intermediary, but bypass the banks – is riskier than traditional lending but the industry’s growth worldwide has been explosive (see below).

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