Is lendings clubs the future?

[Italkcash Newsfeed]

Lending clubs is starting a new era. Lending clubs, credit societies and credit unions. Its not a new concept. In Europe Credit Unions has been a main credit institution for centuries. More than 80% of real estate in Scandinavia is financed by credit unions. The concept is the same as the old co-operative business model. Everybody provides and everybody benefits.

Lending cluds can be a good alternative to the big banks. In Europe this type of institution has been a factor to secure a fair lending market and a broad invester crowd.

Lets see how the type of credit institution will grow in the states under this financial meltdown.


The Doc

[Ms_Margaret]

Lending Club is at a turning point. They have stopped bringing in new lenders for the time being and I believe they need to get this situation resolved quickly to increase their foothold within the P2P lending industry and become profitable. Lending Club is still at a young enough state of business that they may be able to afford to slow operations to add functionality and legality to certain operations. Had they waited much longer, this could have been nearly impossible.

As it stands, I think they are taking a very calculated risk, and one that was not made lightly. A small sacrifice now has the potential to reap large dividends later.