If the current sub-prime lending crisis in the US and the UK proves anything, it’s that even traditional lenders can act irresponsibly, despite the myriad government regulations designed to hold them in check. That sobering fact, together with the tightening liquidity and a possible upcoming recession, should give a boost to so-called peer-to-peer lending. For the uninitiated, P2P lending websites directly match borrowers seeking relatively small amounts of cash with private individuals willing to lend them the money. Borrowers post their needs, lenders make offers and everyone benefits from bypassing lending’s traditional middlemen who package loans for a fee.
We first looked at P2P lending nearly three years ago when we profiled Zopa, a UK start-up which we described as “like eBay for money”. Since then we’ve covered other fast-growing P2P start-ups in the US, the Netherlands, Germany and China. And last week, Fynanz, which focuses solely on loans to students.
The latest entrant on our radar screen is Fosik, which brings P2P lending to Australia. Like its counterparts elsewhere, Fosik touts the benefits of using the site’s tools as a way to formalize lending arrangements among family members and friends. Plus, the site notes that investors—whether they know the people they’re lending to or not—can benefit from returns that reach 10 percent or higher.
Meanwhile, signs abound that the P2P lending is rapidly maturing. Prosper is seeking to create a secondary market around its loan portfolios. This would allow lenders to get quick cash by selling their loan portfolios to other investors. Is it too late for entrepreneurs to get into the P2P lending space? Probably not. Whether launching in new markets, targeting specific audiences or offering different types of financial services, there’s still plenty of room for peer-to-peer banking to grow.
Website: www.fosik.com.au
Contact: www.fosik.com.au/About/Contact.aspx
Spotted by: Tom Flaherty
What a great idea. I have just looked and it gave me an idea to ask my father for a loan for a downpayment on my first investment property. Go fosik
I am looking for working capital to start-up my business. Not willing to pay up-front fees. Want a trusting lender with nothing hidden in the deal. A lender who will work with poor credit and who I am able to speak with by phone and not just email. I also want to be able to look at a report on a company or the individual who will be providing the funds to me. I am willing to pay a higher interest rate but nothing over board. Please contact me through email along with your phone number so that we may speak at a.delauder@yahoo.ca thank you.
April
This isnt new - there's been lots of p2p operators indicating they're starting downunder - igrin.com.au, lendinghub.com.au, nexx.co.nz, peermint.com - lots. Fosik looks dead - no word from them for over 6 months.
The new peer lender to watch is Sécurité AU Pty Ltd in Sydney which is affiliated with Sécurité in the US. Sécurité operates Loan Market Direct providing peer lenders with secured loans. Much more sophisticated than the standard peer to peer lending model.