Growth In Social-network Lending

KOAM TV -- Dec 28 -- Personalized lending has taken off as the phenomenon of microfinance has grown in scope and stature. With microfinance, a funding organization teams up with local partners to capitalize tiny businesses, often with just a few or no employees. For Ms. Reese, an IBM engineer, the revenue stream from loans she's made at 0% interest through Kiva isn't as important as what the payments represent. They mean her hand-picked business partners -- a barber in Uganda, a fish saleswoman in Vietnam, a school principal in Kenya. In February, Prosper debuted with a claim to be America's "first people-to-people lending marketplace." In May, LendingClub launched a direct lending site that uses a social-networking database to link lenders with suitable borrowers on the basis of a lender's preferences and risk tolerance. Zopa is a for-profit firm that's been pairing lenders with borrowers in Britain since 2005 and launched its service in the United States earlier this month. Virgin Money in October acquired CircleLending, a six-year-old manager of loans among friends and families. It plans to add more types of loans next year. FULL ARTICLE @ KOAM TV