The Bankwatch

Tracking the consumer evolution of financial services

US Zopa works by donating interest to help borrower friends

US Zopa launched a preview this morning, and this screen shot shows how the depositor (not a lender) can reduce their interest, and that reduction goes to support the payments of a friend borrower.  I wonder how much this model will provoke interest.

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Written by Colin Henderson

December 1, 2007 at 14:18

Posted in Social Lending

4 Responses

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  1. It’s indeed a point of differentiation. Feels more like Facebook than Prosper. I like it.

    Trey Reeme

    December 1, 2007 at 16:12

  2. @Trey … yes its different, but I am wondering about the appeal to investors. I see friends and fmaily buying CD’s but hard to follow the appeal beyond that.


    December 1, 2007 at 18:01

  3. […] at thebankwatch Colin is wondering if the US model of Zopa will provoke […]

  4. I am not very excited about this model from a lending point of view. However, I noticed that to borrowers it can very enticing — some borrowers may actually receive a negative interest rate on their loans. Of course, the model will only be possible if enough lenders are willing to park some money using Zopa and pass along some help to borrowers.

    Personal Loan Portfolio

    December 10, 2007 at 02:07

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