Social Banking set to grow
(11 February 2008 – USA) Social Banking platforms, such as peer to peer (P2P) lending networks, are set to grow worldwide, according to research by consultancy Gartner.
Gartner believes that social banking will grow to control a total of 10 percent of the worldwide market for retail lending and financial planning by 2010.
Gartner says that social platforms are pushing aggressively into lending and payments. Lending platforms, such as Zopa, Prosper and Lending Club have done so by raising funds from venture capitalists over the past two years.
Both US based Prosper and UK competitor Zopa raised around $40 million in financing.
Alistair Newton, research vice president at Gartner, explained that social networks are increasingly forming part of the consumer purchase process for new products and services.
Stessa Cohen, research director, Gartner, said that social banking will emerge first in cultures with societal acceptance for social welfare where un-banked clients need capital and market access.
Gartner defines 'social banking' as a combination of trends related to banking products and services. These include green practices, social entrepreneurship, P2P lending and financial planning via social networks.
Gartner says that social platforms are pushing aggressively into lending and payments. Lending platforms, such as Zopa, Prosper and Lending Club have done so by raising funds from venture capitalists over the past two years.
Both US based Prosper and UK competitor Zopa raised around $40 million in financing.
Alistair Newton, research vice president at Gartner, explained that social networks are increasingly forming part of the consumer purchase process for new products and services.
Stessa Cohen, research director, Gartner, said that social banking will emerge first in cultures with societal acceptance for social welfare where un-banked clients need capital and market access.
Gartner defines 'social banking' as a combination of trends related to banking products and services. These include green practices, social entrepreneurship, P2P lending and financial planning via social networks.
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