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P2P Banking
Game changers
Zopa Facts
Social Lending
Trust
Conclusion
Introduction
9 July 2007
Bankless banking?
Introduction – Storeless stores
“P2P at banking is about people who lend each other
money through the Internet.”
P2P Banking
Game changers
Zopa Facts
Social Lending
Trust
Conclusion
Introduction
P2P Technology Examples
P2P Banking
Game changers
Zopa Facts
Social Lending
Trust
Conclusion
Introduction
Music Movies Softwares
P2P Lending Networks
Zone of Possible Agreement
P2P Banking
Game changers
Zopa Facts
Social Lending
Trust
Conclusion
Introduction
Game changers
Game changers / Potential industry disruptors
“Any industry making a huge profit margin off its customers is a good candidate for disruption.”
P2P Banking
Game changers
Zopa Facts
Social Lending
Trust
Conclusion
Introduction
Why YOU should know….
Zopa is coming
to Italy!
P2P Banking
Game changers
Zopa Facts
Social Lending
Trust
Conclusion
Introduction
Zopa Facts
Default rate 0.05% 170, 000+ members after 2 years
Cheapest loans in the UK, no early repayment penalty
Great financial return – 30% better return than leaving money with ING Direct (leading direct savings bank)
Now being copied in US, Germany, Canada, Denmark, Holland and Italy
eBay, Virgin and Facebook have all entered the Social Lending market in the last 2 months
Zopa getting ready to launch in the US and franchising elsewhere
P2P Banking
Game changers
Zopa Facts
Social Lending
Trust
Conclusion
Introduction
Is it appealing to the market?
74%
Consumers would consider borrowing online through a ‘social lending’ community
rather than a high street bank.
43% - 69%people felt that the interest charged on borrowing
from high street banks was not fair in comparison to the interest rate received on savings and investments.
64%General bankers said that they had received charges from their principle bank which they felt were unfair
or unreasonable
P2P Banking
Game changers
Zopa Facts
Social Lending
Trust
Conclusion
Introduction
No wonders awards…..
Awards (Winning criteria’s)
Best Internet Project 2007Neil Taylor, The Banker - "What really impressed the judges was Zopa’s switch from ‘non-commercial’ to ‘regulated’ credit agreements in June 2006. By using new technology Zopa was able to deliver an unmatched level of real time service bringing borrowers and lenders together in a very robust risk-management environment."
Best Banking/Bill-Paying Website 2007David-Michel Davies, Executive Director of The Webby Awards – “Zopa's selection as winner is a testament to the skill, ingenuity and vision of its creators.”
"The peer-to-peer answer to the high margins
of traditional banking.”
P2P Banking
Game changers
Zopa Facts
Social Lending
Trust
Conclusion
Introduction
Connecting lenders and borrowers
Matchmaking lenders with borrowers – dating website?
P2P Banking
Game changers
Zopa Facts
Social Lending
Trust
Conclusion
Introduction
Web 2.0?
Let’s recap!
P2P Banking
Game changers
Zopa Facts
Social Lending
Trust
Conclusion
Introduction
Web 2.0 Technology Driven
P2P Banking
Game changers
Zopa Facts
Social Lending
Trust
Conclusion
Introduction
Collaborators and Investors
Sir Richard Branson's Virgin Group has taken a majority stake
in Massachusetts-based CircleLending, a provider of loan
administration services that specialises in managing loans between relatives and friends. The investment will form the foundation for a new Virgin-branded financial services
offering in the US.
P2P Banking
Game changers
Zopa Facts
Social Lending
Trust
Conclusion
Introduction
Motivation: Users create content
Each day, for instance, volunteers create close to 10, 000 articles for the online encyclopaedia Wikipedia.
P2P Banking
Game changers
Zopa Facts
Social Lending
Trust
Conclusion
Introduction
Community circle of trust in Circle Lending
So how does the user content work?
P2P Banking
Game changers
Zopa Facts
Social Lending
Trust
Conclusion
Introduction
The Social Lending market
..just like eBay, price comparison websites, amazon and Linkedin
P2P Banking
Game changers
Zopa Facts
Social Lending
Trust
Conclusion
Introduction
The Social Lending market
P2P Banking
Game changers
Zopa Facts
Social Lending
Trust
Conclusion
Introduction
The Social Lending market
Internet competent
Financially savvy
Stimulated by risk-taking
“Mini-preneur”Desire control,
uniqueness and autonomy
Niche Mass
P2P Banking
Game changers
Zopa Facts
Social Lending
Trust
Conclusion
Introduction
Why Social Lending?
P2P Banking
Game changers
Zopa Facts
Social Lending
Trust
Conclusion
Introduction
Importance of Trust in Banks
P2P Banking
Game changers
Zopa Facts
Social Lending
Trust
Conclusion
Introduction
Trust
‘Banking is fundamentally a business of trust. If we don’t have our customers’ trust, we won’t
have their business.’
P2P Banking
Game changers
Zopa Facts
Social Lending
Trust
Conclusion
Introduction
Financial return, saving, risks and rewards
P2P Banking
Game changers
Zopa Facts
Social Lending
Trust
Conclusion
Introduction So let’s recap…..
‘And the world’s a stage, And all the men and women merely players: They have their exits and their entrances; And one man in his time plays many parts’
(Shakespeare, As You Like It, c.1559).
Conclusion: Yesterday’s Today
P2P Banking
Game changers
Zopa Facts
Social Lending
Trust
Conclusion
Introduction
The opportunities for communication are not only vast but also enable people to construct personally meaningful identities.
These ‘selves’ are fragmented and multiple, allowing people to have a ‘distributed presence’ as they construct different selves
in different ‘windows’ at the same time.
Conclusion: Yesterday’s Today
P2P Banking
Game changers
Zopa Facts
Social Lending
Trust
Conclusion
Introduction
Conclusion: Yesterday’s Today
P2P Banking
Game changers
Zopa Facts
Social Lending
Trust
Conclusion
Introduction
The SOCIAL LENDING community really care and want it to work, direct communicationswith our members are critical to successful development (e.g. blog, Bulletin Board, email etc)
TRUST is earned in financial services through time, a trusted safe and secure marketplace is critical to success
