Rebuildingsociety.com marketing adviser and head of introducer channel Julian Wells said he “could definitely see” the expansion of the online service, where many individuals lend small amounts of money in order to achieve better interest rates than in mainstream banks for investment into residential mortgages and new-builds.
“Peer to peer works if there is supply and demand,” Wells said. “People are going to buy into an asset that will appreciate – if you see there is going to be a growth it is just like any investment decision really.”
The service would evolve in regional and specialist sectors, he suggested, although it might be too complicated for a venture with ongoing costs such as buy-to-let mortgages.
Wells highlighted the success of online brands such as Facebook and Ebay and argued the financial services sector could use the collaborative online culture to rebuild trust.
“There are lots of examples of doing financial transactions where you do not need a bank anymore,” he said.
Coming soon, the MSTV interview with Julian Wells.
