Chapter Eight: Social Networks and Industry Disruptors in the Web 2.0 Environment
Online File W8.2 (continued)
Groups on Prosper are formed to bring people together for the common goal of borrowing at better rates. Groups earn reputations according to their members’ repayment records. Borrowers that organize groups earn rewards.
P2P lending competes both with traditional banks and with online banking. Online banking is especially attractive to small investors, with some banks offering online savings accounts of 5 percent to 6 percent in 2006 through 2007.
Online File W8.2 ◗ REVIEW QUESTIONS
1. 2. 3. 4. 5 .
D e Define P2P lending. Describe the zone of possible agreements. Describe how ZOPA arranges loans. Describe security measures for lenders. s c r i b e P r o s p e r .
KEY TERM FOR ONLINE FILE W8.2
Person-to person lending
REFERENCE FOR ONLINE FILE W8.2
Steiner, C. “The eBay of Loans.” Forbes, March 12, 2007.