Zopa up

Thanks to Tim Kitchin for emailing me to say that Zopa‘s website is up and running. Tim says in his mail:

I am proud to be peripherally connected to this new financial services venture just launched by the former founding team at Egg.

Essentially it

3 thoughts on “Zopa up

  1. Disruption :: Disruptive Innovations

    Disrupting the lending market

    Johnnie Moore highlights the launch of Zopa, "the first borrowing and lending exchange":We put people who want to lend in touch with creditworthy people who want to borrow. And because there’s no middleman – the borrower just pays a 1% exchan…

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  2. jbr

    Wow! that’s some serious brand shifting! basically, take the ebay model into the financial world. wonder how the tax people are going to view this? a lender will be making a profit and the tax folks will want their cut.

    regardless of the nit-pick details, this is a BOLD move and with the success of ebay, it could very well work. wonder how many financial institutions will a) commit some seed money to find out how this works b) adopt their own web based money lender bizzare.

    truly, this will start a few new market conversations. very interesting! thanks for telling the blogosphere.

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  3. tim kitchin

    jbr…

    You mean you don’t declare your savings interest as income???

    Personally I don’t have any savings income, but it’s no different to declaring building society interest, is it.

    To your point about replication. Would another lender have the balls and the brand to do this?

    I don’t think so.

    Getting back at the banks is a big part of the emotional proposition as I interpret it. A bank could hardly replicate that.

    Could E-bay do it? Could Amazon? Could the co-operative movement? You betcha.

    Differentiation will have to be on service and innovation. Attract and retain through increased personalisation, unpicking all the in-built unfairnesses of the status quo:

    gay 2 gay lending?

    local 2 local lending?

    entrepreneur 2 entrepreneur lending?

    lending to the great unbanked?

    The opportunity of this long term as a mechanism of microfinance is quite stupefying. but it begs some interesting questions of mutual goverance…

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