P2P Lending with a Twist
October 15, 2007 – Virgin Money entered the US market today with the usual ‘Virginesque’ fanfare and aplomb. Earlier in the year Virgin bought CircleLending (and its $200MM loan book) and is using that as a launch pad. For those unfamiliar, CircleLending was the Massachusetts based peer-to-peer (P2P) lending company that facilitated credit transactions between friends and relatives; a slightly different model than a Zopa or a Prosper. Anyway, what is important is that the P2P lending category is now attracting attention, is poised for expansion and is potentially a disruptive force for mainstream banks and other lenders. How disruptive? Time will tell, but Virgin is already talking mortgages and student loans — additionally, it is not a staid bank and has deep marketing pockets. Best of all is a well known, fun and adventurous brand.
Posted by Ali Raza on Monday, October 15, 2007