Peer-to-peer & crowdfunding boom could make banks obsolete: BoE.

Independent: “The days of the banking middlemen may be numbered as a technological revolution in business lending shakes the dominance of the UK’s biggest banks, a senior director of the Bank of England has said.” “The rise of peer-to-peer lenders such as Zopa and Funding Circle – which directly match up firms in need of cash with investors – and so-called crowd-funding, where small amounts are raised from a large number of funders, will challenge the nation’s major financial institutions, according to Andrew Haldane, the Bank’s director of financial stability. He told The Independent: “The mono-banking culture we have had since the 1990s is on its way out. Instead, we are seeing a much more diverse eco-system emerging with the growth of new non-bank groups offering peer-to peer lending and crowd-funding which are operating directly with a wider public. ….Zopa has lent £250m since being founded in 2005, while Funding Circle has lent £66m. Crowdcube, the crowd-funding website, has lent £4.5m since being set up in 2010 and has 25,000 registered investors. In total it is estimated the peer-to-peer industry has already advanced £300m to individuals and small businesses this year.”