Who needs a bank to borrow money ? surprised !!..well check these few links Prosper , Zopa
The idea behind Prosper, and a handful of sites like it, is to allow peer-to-peer lending. It's lending enabled in large part by technology that allows bite-size payments to be processed online profitably.
(Prosper is founded by Chris Larsen, one of the old hands at consumer finance).
The website lets lenders bid against each other on the interest rates they are prepared to offer to specific borrowers.
There are risks, to be sure. The biggest is defaults. Prosper's average net default rate—based on the amount of money that is defaulted after collections—from Nov. 1, 2005, through Dec. 31, 2007, for all credit grades was 4%. That's roughly in line with defaults on credit cards. Portfolio size is approx USD 140 Mn.
What needs to be seen is how this model will evolve? Is the model scalable? How is money collected in case of default and cost implications? Also data on Operating Leverage or NIM would help...