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).

{{content.question}}

{{ twilioFailed ? 'SMS Code Failed to Send…' : 'SMS Code Sent…' }}

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device


Verify your mobile number to unlock a FREE trial

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa
Mastercard

The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device


Register as a new member

(using a different email)

Related Articles