The Zone of Potential Amazement

The financial services industry is constructed not for borrowers, or for lenders, but for the intermediaries - the a-peo...

February 7, 2005

The financial services industry is constructed not for borrowers, or for lenders, but for the intermediaries – the a-people: adminstrators, advisers, auditors, arbitrageurs and actuaries.

These a-‘person’s leech value from the system for borrowers and lenders alike. It has always been thus.

But there is, as of ‘quite soon’ – a better way – at Zopa

Go back to the absolute basics of marketing and construct the simplest, self-balancing market you can imagine. Borrowers borrow on terms they can afford. Lenders lend on terms they can accept. The resultant consumer-exchange leverages a minimal and transparent flat charge for administration.

There is maximum mutual visibility of lenders and borrowers within clearly-defined risk categories, with clear community self-governance.

This is what the co-operative bank should be.

This is mutual marketing in action.

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