When Ron Suber, Head of Global Institutional Sales at Prosper.com, said this at the LendIt 2013 Online Lending Conference, he was not referring to Lending Club, the other peer-to-peer lending giant, who by the way also sponsored the event, he was talking about the banks.
Since the start of the internet and during my career as a new finance entrepreneur in the 90’s and early 2000’s established financial institutions like the big banks, insurance companies, brokerage firms, and mutual fund companies, have been boicotting any effort of innovation or paradigm change in the financial industry. And for years they have been able to maintain the status quo.
But recently companies like Prosper and Lending Club have been slowly changing this situation.
In the last 5 years both peer-to-peer marketplaces together have been able to fund consumer loans totaling $2.5 billion. They are both accelerating their growth and attracting big equity investors like Sequoia Capital and Google. It seems that this time the big players haven’t been able to stop the trend.
This doesn’t mean they don’t compete against each other, but in a $3 trillion market controlled by the banks they still have a long way to go before they clash.
So for now the real competitors were not at the conference.
In this video Ron gives the Lendit Conference 2013 Afternoon Keynote, where he summarizes the main topics of the presentations, debates, and conversations among the main online lending industry players: