Zopa under fire

Interesting piece here at The Times suggesting that Zopa is attracting a storm of controversy. It was unlikely that the...

March 15, 2005

Interesting piece here at The Times suggesting that Zopa is attracting a storm of controversy. It was unlikely that the banks would just take disintermediation lying down, wasn’t it…

Apparently financial ‘advisers’ are suggesting that people steer clear, until the exchange has a demonstrable track record.

But if people steer clear, the exchange won’t have a track record, and everyone will have to retreat back to…er…advisers.

Aha! Now I get it.

More interestingly, the article points out that the consumer-lending mechanism is different from other savings vehicles, as the interest-bearing balance reduces as the loan is repaid.

This is an interesting and constructive point.

Maybe the Zopa people need to create some form of automated relending option…

Tagged as: Uncategorized



Comments