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Behind Blue Eyes: Financial innovation: peer to peer lending

Peer to peer lending (P2PL) is one of many innovations in finance that depend on the cheap connectivity of the Internet, which radically cuts transaction costs … It’s too early to say whether P2PL or crowdfunding will flourish. But it is nice to see some innovation in finance that doesn’t involve exotic derivatives and which might just improve the flow of funds to small businesses, which is one of the main purposes of the financial system.

Dr Simon Taylor, University Lecturer in Finance at Cambridge Judge Business School, investigates peer to peer lending in his latest blog post.

Read the full article [simontaylorsblog.com]