Times declares crowdfunding 'A Scandal'

Have the crowdfunders upset somebody? It seems we might have. The Times, traditionally England's newspaper of record, published an article headlined "Crowdfunding is a 'scandal waiting to happen'" and illustrated it with a large picture of Zopa founder Giles Andrews. 

screen shot of Bruce Davis' tweet

Zopa is the UK's oldest peer-to-peer lender, and this week its cumulative lending passed the one billion mark. 

We don't really want to give them the oxygen of publicity, but here is the story (requires subscription).

The article prompted some ripples in the teacup that is Twitter. Bruce Davis, the CEO of Abundance Generation, making the most pertinent comment:

A banker, did you say? Yes. It would seem the peer-to-peer finance sector has scandalised a banker. And just when we thought the press had stopped scaremongering about crowdfunding

The article quotes Paul Lynam, the CEO of Secure Trust Bank, who was formely Managing Director of Banking at Royal Bank of Scotland Group.  That's the same Royal Bank of Scotland that had to be rescued when it got into such deep trouble it even had to close its tax avoidance department 'due to a lack of funds to continue'. 

One must have a heart of stone not to laugh at such sad news, but we accept Mr Lynam knows a scandal when he sees one.

If you have enjoyed being scandalised by peer-to-peer lending, or - more to the point - if you would like to be reassured by a well-run section of the banking industry that operates transparently, we recommend you proceed forthwith to http://p2pfa.info/data, where you will be able to inspect the loan books of several major players in peer-to-finance, including their non-performing loans and capital losses. Then, we hope, you will make up your own mind.