P2P AROUND THE WORLD

Globally P2P is becoming big business. Harmoney is New Zealand’s first P2P lender targeting prime personal lending. Overseas, there is also P2P serving small business borrowers, something Harmoney will one day emulate. A In the UK, website Crowdfund Insider wrote: ‘‘According to the data compiled by P2P Finance Association, members, lenders have lent over £500 million in the first half of 2014, carving a path to lend over £ 1 billion for the year – an important milestone for the young industry.’’ A Charles Moldow, of US company Foundation Capital, a minor investor in Harmoney: ‘‘We believe that when . . . lending activity is taken off the books of big banks, there will be much less need for government to backstop those banks – thereby rendering irrelevant the concept of ‘too big to fail’.’’ A Cormac Leech from Londonbased Liberum Capital: ‘‘P2P is the Walmart, or Ryanair, of financial intermediation.’’ A ‘‘ Peer-to-peer lending is not riskfree, and carries relatively more risk than traditional savings accounts, but is less risky than investing in stocks and shares.’’ British P2P lender Zopa. A British business secretary Vince Cable has high hopes for P2P for small and medium businesses. Speaking in February he said: ‘‘Too much business lending is concentrated in the big banks and, if we’re to have a properly functioning business lending market, they need to be challenged by new banks, peer-to-peer lenders and other alternative providers.’’