Peer to peer lending news round up – 4th July, 2014

Posted 4 July 2014.

International Peer-to-Peer Lending News Harmoney News Round Up

Forbes posted an interesting video this week with Julie Hanna from Kiva, discussing the democratising force of technology. Kiva has helped fund nearly 1.5 million entrepreneurs from poor countries around the world, with a 1% default rate.

Get a glimpse at the scale of U.S. credit card debt with this infographic from Prosper. Not one for the faint of heart.

Lending Club have been very busy recently in the lead up to their IPO. The largest peer-to-peer lending platform in the U.S. is expected to raise over $500 million, and is reported to be seeking a $5 billion valuation. You can find more about it here . posted a great advisors guide to peer-to-peer lending recently, worth a read for the writer’s detailing of personal experience investing through Lending Club. You can, and should, read the full article here.

This piece is from much earlier in the year but worth looking at nonetheless. Simon Cunningham of Lending Memo published this whitepaper, detailing his argument for why peer-to-peer lending will replace American banking. It’s short, and undeniably punchy, focusing tightly on the efficiency of the peer-to-peer model, concluding that Lending Club was, at the time of writing, 270% more efficient than the Wells Fargo bank model he compared it to.

Here’s a conversation starter from this week – why is it so difficult to teach people to manage money? The piece is U.S. centric, but thought provoking regardless. In the same tone, Reuters had a conversation piece asking what people would do if they received a large sum of money, no strings attached. What shouldn’t you do if it happens to you? Read the piece to find out.

And in our final international piece for this post, TechCrunch discussed technology’s role in the “un-banking” of America, looking at the circumstances, needs and tools that have begun to change banking in the U.S.

New Zealand Peer-to-Peer Lending News, as per usual, have had a series of pieces worth reading. They published a piece this week announcing, unsurprisingly, that NZ’s banks are still among the most profitable in the world.

Interest also spoke with ANZ’s CEO recently about his thoughts on peer-to-peer lending. His response: “I think there’s a reason for why banks exist. Other people try and lend money here and there, but generally they don’t have the scoring systems…And then there’s the issue of if you get too big you’ll be heavily regulated. You won’t be allowed to run around and do what you like.”

Our highlight of the piece actually came from the comments section, with user TimFromTaupo using a little creative license to conclude the statement, commenting: “… CEO David Hisco went on to say that customers should just ignore P2P lending and visit an anz branch as that was the safest option and after all has his customers best interests at heart…” spoke with the Financial Markets Authority in an article yesterday, confirming that they had received five applications for crowdfunding and peer-to-peer lending licences. We’re happy to say that Harmoney can take credit for one of those licence applications.