Banks look vulnerable as lucrative loans market gets personal online
Mike Israel is at the forefront of a trend that some reckon could disrupt the very lucrative business of lending money to consumers and businesses. An information technology worker in his 50s, Israel is one of a growing number of people pocketing a piece of the major banks’ healthy profits, by lending their savings directly to borrowers and charging interest. He’s doing it via the internet, on platforms that allow investors to loan their cash to consumers for expenses like a new car, a holiday or a wedding. Borrowing for a wedding is a typical transaction. Known as peer-to-peer platforms, these websites don’t have to pay for sprawling branch networks […]
Fintech split on lower regulatory hurdles
Challengers to the banks and global payment giants disagree on whether there should be an easing of regulations for finance start-ups, a major recommendation of the Murray inquiry.Peer-to-peer lender RateSetter Australia argues current regulations are adequate and flexible enough. It said “graduated” regulation applied based on the company’s risk to the financial system suggested by the Murray financial system inquiry could threaten confidence in the emerging loan business models – particularly those lending to the public.”It is important that regulations for P2P lending are not weakened in any way and that consistency of regulation is critical for the P2P lending industry to prosper,” it said in its submission to the […]
