I have written quite a bit on the potential of social networking and Web 2.0 technology to shake up the banking industry. Now it looks like Prosper, a peer to peer lending company, has jumped a few regulatory hurdles and secured another round of capital.
As usual, here is the venerable Techcrunch article, reporting the story with emotionless journalistic gusto.
This is exactly the kind of technological/financial development I have been hoping for, and Prosper is only one member of a growing group of peer to peer lending networks.
It may not seem like much now, and the business model for a community like this will easily be intimidated by the recent collapse of Ning.
The secured investment is encouraging to be sure, but for these networks to become a real threat to the established banking titans it will require the efforts of bloggers and promoters, willing to put their time and money behind a radical new financial model.
I am planning to create a list of innovative financial start ups with the potential to create more real capitalism and competition in a rotten banking market. Check in as I expand and grow this list. I will watch Prosper, and the other young companies closely.
What do these companies need to do in order to become financially solvent? How can they change our current financial world?
Of course, here is the link to Prosper.