Peer Bidding

Prior to the financial crises, most people were using banks and other financial institution to get access to cash and receive loan funding. According to Matt Scully and his article in the American Banker newspaper “Banks Heat Up Bidding for Peer-to-Peer Loans”, a turning point in the history of the finance world has been the bankruptcy of Lehman Brothers in 2008; as people lost confidence in financial institution and were no longer able to secure credit with reasonable terms and conditions, peer to peer lending emerged as a valuable alternative. Peer to peer lending, also known as social lending, is a form of lending money to those in need, to be repaid with lower interest rates (Scully). With the concept of peer to peer lending, anyone can