Debt consolidation has been a hot topic in the past few years. Since the financial meltdown in 2008, banks have tightened up on their risk models and it was near impossible to get a personal loan from a bank.
A short while ago, I pronounced P2P lending dead. Annihilated. Massacred by Wall Street bankers. Choked by a Black Rock. Then, I heard from Dara Albright, co-founder of LendIt, the largest peer-to-peer lending conference in the world.
Whether you believe the FinTech investments this year were $6Bn or whether you believe the bigger estimates of upwards of $18Bn, one thing is clear - FinTech is really hot right now. But it's only going to get hotter.
There are some good funding alternatives for small businesses and the growth in this area continues to accelerate. It won't be long before you and I can get crowdfunded equity in our favorite startups and businesses.
In the current economic climate, person-to-person (P2P) lending has become rather popular. It provides alternatives for both borrowers and investors who are looking for ways to meet their financial goals.
Is this the beginning of an outright social movement? P2P lending will certainly not displace the retail lending divisions of the big banks anytime soon. That said, well-regulated social banking clearly offers many advantages.
The web is making it easier to borrow money from a community of strangers using a concept called "peer-to-peer lending." Entrepreneurs are embracing it to find virtual "friends & family" to give them loans.