Social banking

Antony Mayfield has an interesting post on specualtion that social banking (things like peer-to-peer lending) could account for 10% of all retail lending in a couple of years.

This comes via Jason Gardner, blogging with refreshing honesty from within Lloyds TSB. I like the idea of a banker who does thought experiments like this one:

As a thought exercise, I’ve been wondering if it is possible, these days, to do without a bank at all and still have a relatively normal life. And by normal, I don’t mean keeping cash under the mattress. I’m talking about a proper banking relationship, but without the bank account.

Actually, I’ve done some work in the retail banking sector recently (sorry to be opaque but I signed a very weird NDA) and these guys are clearly paying attention to the changes all around us. Whether they can develop an effective response is a whole other question.

3 thoughts on “Social banking

  1. Saurabh Garg


    Eko ( is trying to replicate the same in India.

    I have my reservations if Eko would work in the long run but they have managed to get a lot of attention from media and investors.




  2. Computer Consultants Kit

    Hi Johnnie,

    It would be really hard to imagine someone huge like Wachovia, Bank of America or Wells Fargo not taking notice of this trend sooner or later.

    The real issue?

    Will lobbyists pressure Congress to regulate peer-to-peer lending? (after all the sub-prime lending abuse issues are resolved… in about 5 years)

    Or will the big banks simply want a piece of the peer-to-peer lending business?

    Joshua Feinberg


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