Social lending is a concept that’s easy to explain. Instead of borrowing from a bank, you borrow from another person. No, not Big Chris from round the corner who’ll break your fingers with a baseball bat if you default on the 1200% interest. That’s A Bad Idea.
Instead, Zopa.com is a social lending service, which matches borrowers and lenders in the same way eBay matches buyers and sellers. “Lending to someone to improve their house or buy a new car is much more grounded than investing in exotic shares or funds,” says co-founder Dave Nicholson, explaining why borrowers are keen on the model.
For the full interview, explaining how the service is evolving, head on over to Techscape.