In an video interview in June, Konrad Hummler, managing partner at Swiss Bank Wegelin & Co, states how he sees p2p lending as a threat to banks.
P2P lending services could replace vital functions of banks. He says government influenced major banks are to inefficient. Established institutions will use calls for regulation to protect their business against newcomers.
(The interview is in German language)
In the age of the internet bad customer service can not only scare away the harmed customer – he can retaliate by appealing to the masses and unleashing a viral protest song.
This video was viewed 2.4 million times. I bet United Airlines badly regrets the events by now and wish the could turn back the clock.
While this is completly unrelated to p2p lending similar things could happen, if a lender or a borrower feels he did not receive appropriate service. With Twitter, Youtube and blogs word can be spread fast.
Zopa has run a member competition, asking members to explain how Zopa works for a borrower or a lender.
I watched several of the created videos. My favourite is the video below by Glenmation.
Kiva has just added the first video to one of the borrower’s profiles. A video conveys much more information about the business of the borrower. And by posting the videos on Youtube, Kiva achives viral marketing effects.
I do wonder why they did post such a short video (5 seconds) as example – bandwidth considerations?
(Source: Kiva announcement)
A Fistful Of Dollars: The Story of a Kiva.org Loan from Kieran Ball.
The video was made by Kiva fellow (volunteer) Kieran Ball, who worked for Kiva in Cambodia. It explains the transfer of the money for a Kiva loan from a lender in London to a borrower in Cambodia.
This is a great example how many people can be reached over the internet with a well made video in a short time. Online since only 8 days the video has been watched over 32,000 times and was embedded in many websites (at least 50).
ABC interviewed Renauld Laplanche of Lending Club on ABC Money Matters. Laplanche says in the last 10 days over 1 million US$ in loans were funded and states that the default rate has been lower than 2% over the last 18 months. Watch the video.