Thursday, July 26, 2007

Update: More on bypassing the Banks

I posted earlier on a peer-to-peer lending project called CommunityLend (love the logo, by the way), which is still as yet unlaunched. Here's another interesting angle: a facebook plugin. Using existing social networks to make (presumably better-trusted) connections between lenders and borrowers. LendingClub has this to say for themselves:
Now that Lending Club is available to Facebook members, person-to-person lending on Facebook is finally possible. “Chip wants to pay off his crazy 18% credit cards; can you chip in $100? You’ll get $110 next year, and even better, you’ll know you helped him out and you may also earn a seat at his debt-free celebration dinner.” Your real friends will even validate the purpose of your loan, and strengthen your desire to live up to it.
And more formally:
Lending Club is an online lending community where people can borrow and lend money, bypass the banks, and get better rates. By working together, members can borrow money more easily and at a better rate than they would get from a bank, or invest in a portfolio of loans at higher rates than those served by savings accounts or CDs. A proprietary technology called LendingMatch™ helps match lenders with borrowers using connections established through social networks, associations and online communities, and build diversified portfolios based on lender preferences.
Their blog has some interesting content discussing P2P lending, and financial advice more generally for the Facebook set. Some articles are quite interesting, including this one on loan pricing. LendingClub is currently open to Facebook users, and plans to expand beyond (presumably to other social networks) soon.

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4 Comments:

Anonymous Anonymous said...

Actually the plan is to expand to everyone (USA only, sorry it's all the legal stuff!) - very very soon. So soon enough, you will NOT have to be a member of Facebook.

We have a sign up on the site - http://blog.lendingclub.com - put your e-mail in there, and we will notify you the minute we go live with that site.

oh and thanks for the coverage.

Rex Dixon
Director of Social Media Content
Lending Club

26/7/07 20:49  
Anonymous SocialLendingWatch said...

Good Article!

We recently published exclusive interviews with Colin Henderson (CMO of CommunityLend) and John Donovan (COO of LendingClub). They both provide some great insight into plans and operations in each of their respective companies.

CommunityLend Interview: http://www.sociallendingwatch.com/2007/06/25/slw-authoritative-report-3-colin-henderson-writer-at-thebankwatchcom-and-cmo-of-communitylend/
LendingClub Interview: http://www.sociallendingwatch.com/2007/06/22/slw-authoritative-report-2-john-donovan-coo-of-lendingclub/

26/7/07 21:35  
Anonymous Colin said...

Thanks for the comment on CommunityLend. With regard to FaceBook, and social networks in general, the opportunity is there for sites to lever the F8 platform. At Communitylend we are well down that track, so stay tuned!

26/7/07 22:40  
Blogger Fergusson said...

Thanks for the feedback. This is an area that fascinates me, and I think many others, as well. Great interviews at http://www.SocialLendingWatch.com. Thanks for the links.

27/7/07 10:19  

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