Bypassing the banks

As the backlash against bankers continues, consumers are turning towards social loan sites instead of traditional financial institutions. In 2005, the first peer-to-peer loan site, Zopa, launched in the UK. Its members have now made over £130m in loans. A new breed of social loan site has come to rival Zopa. Yes‑secure, launched in the UK last year, offers a similar service to Zopa, but with a social networking element – it allows lenders to offer more money to borrowers if they share a social connection. Another site, Funding Circle, offers B2B loans in the UK and lets lenders who share common interests join circles that let them recommend other businesses for loans.

Source: New Scientist

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