If we break your thumbs, how can you pay us?
I am not entirely convinced that this is a good idea.
This week saw the latest twist on what’s come to be known as the “eBay model” with the launch of Zopa – an online loans service that works in a similar way. Anyone with some spare cash can offer it up for a loan, through Zopa. Lenders set their own interest rates and can choose which borrowers to lend to, based on their credit rating.
Borrowers, meanwhile, can pick a rate that’s right for them and because Zopa is simply assisting the transaction, not lending its own assets, it claims to take a smaller cut (1% of the amount borrowed) than a bank. Safeguards are built in to help prevent lenders being fleeced and the whole outfit is sanctioned by the FSA – Britain’s financial services watchdog.
Admittedly, it’s probably better than going down the street to your friendly neighborhood loan shark. How much better remains to be seen.
What’s interesting about this, however – good or bad – is that it is essentially encouraging people to bypass for-profit financial institutions and make borrowing and lending personal again. Anybody with the capital to lend can begin acting as a lender, and people in need of funding can act as borrowers, all without a bank involved.
It’s an interesting concept. A good concept? At this point, time will tell. But it is, at the very least, another step in the evolution of internet culture.
Now – here’s the new question of etiquette. Is it ethical to Zopa somebody you’ve Friendstered? Why or why not? Discuss.