24 November 2006
A report by the thinktank Social Futures Observatory has suggested that the online community may extend further into the way consumers borrow and save by offering a preferable alternative to high street banks.
According to the research, 74% of Britons would consider taking out a loan through an online "social lending" community, rather than use their high street bank.
Added to this is the fact that over 60% believed that their bank's main aim was "to make money for themselves", while only 15% thought its main aim was to provide a good financial service to customers.
Professor Michael Hulme, who carried out the study, told the Guardian that the traditional form of banking was seen as almost a "necessary evil" by the majority of the public.
He said: "For most people, banking does not provide any form of rewarding or valued experience, it is simply a necessity. In contrast, the community sites we looked at appeared to offer a much deeper appreciation of the individual far beyond the actual transaction."
One online "social lending community" is Zopa, a relatively new site which is regulated by the Office of Fair Trading and claims to have over 100,000 members. It markets itself as a place for borrowers and lenders to meet and prides itself on the fact that it is "human".
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