Simon Cunningham the editor of LendingMemo.com wrote a paper early this year discussing "Why Peer to Peer Lending Will Replace American Banking".
It discusses the performance of the Wells Fargo v the largest peer-to-peer lender, Lending Club. Funnily for some people the Lending Club came out way on top "270% more efficiently" to quote the report.
To say the investment banks are keen on crowdfunding is something of an understatement
Last week brought news that the Lending Club are looking to IPO, perhaps creating an estimated $5 billion valuation.
What is interesting us most, is not the fact that it is happening, but the nature of the prospective backers: Morgan Stanley and Goldman Sachs. To say the investment banks are keen to get into this space is something of an understatement.
We recently wrote about this phenomenon, as manifested in Britain. Santander UK has decided to invest in financial technology (FinTech) start-ups to the tune of $100m (£58.3m) by means fo a fund. It seems UK crowdfunding is a good place to be right now. There are many crowdfunding opportunities to be had both in the UK and the US with Funding Circle and others making good ground. But regulation is different in these countries, and one factor that will affect the growth of crowdfunding eirher side of the Atlantic is the attitude of the regulators.