BoE official: Peer-to-peer lending changing banking landscape

17 December 2012

Peer-to-peer lending could represent a fundamental part of the future in the British banking industry, a senior Bank of England (BoE) official believes.

Andy Haldane, director of financial stability at the central institution, feels that the dominance of major financiers in the business lending arena is under threat from peer-to-peer groups such as Funding Circle and Zopa.

During an interview published in The Independent today (17 December), Mr Haldane indicated this system - which allows companies needing funds to be directly matched up with investors - will provide a significant threat to established financiers moving forward.

The official noted that the "mono-banking culture" that has been prevalent in the UK since the 1990s is "on its way out" in favour of a new "much more diverse eco-system" where non-bank groups are playing an increasingly important role.

He went on to indicate this could be a positive development for companies across the country, as it should boost the availability of finance for businesses.

By Gary Cooper

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development