People Are Lending Directly to One Another…So What Are We Doing Here?

By Ron Daly

Today on CreditUnions.com, I was drawn to an article titled “Beyond the Home Loan: What can credit unions learn from online crowdfunding platforms?” [Here’s the Full Article.]

While the article doesn’t spell out the overall lessons, there are a handful of examples. Good enough, I suppose, because it got me thinking – what are we missing?

Credit unions, as best I understand them (and after 30+ years in the business, I can honeslty say I do), were created to give members a way to lend to and borrow from one another. They were created as an alternative to the system. Now, for consumers, it seems like we’re just another part of that “system”.

Bank customers and credit union members know that good loans go to good paper. If you’re trying to buy a home or a car and you have a good credit score, you won’t need to look for too long to get what you need. But if what you’re trying to do is create a movie about Linotype machines or start a small business selling weirdly-shaped candles, you’ll likely go wanting. And for the people who have rough credit, quick, high-interest loans with fewer strings mean more than “relationships” with a bank or credit union.

As far as peer-to-peer finance and technology goes, you’re crazy if you don’t go read “A Game of Leapfrog” by Brent Dixon.

From the article, originally published on the CU Watercooler:

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