Saturday, October 28, 2006

The power of PtoP

I attended an interview of Founder at Stanford this week. Prosper allows individuals to ask for a loan online and for others to buy that loan. The real genius I think is that you can just buy a small portion of the loan e.g. 10k loan, I may just want to buy $100 worth and I also get to set the interest rate e.g. 15% but if some one comes along an offers a rate of 10% then the seller of the loan will understandably be more keen to have a lower interest rate.

In the end of the day its just cash moving from AtoB, no big deal? It is though, it is a person to person transaction based upon trust. People are not so much buying cash but the story of the loan seller. The story is where the value lies. We are all heading towards the buying and selling of stories. A market place where we can trade our personal lifestyle data, PtoP.

1 comment: -- Prosper Loans, Lending, Debt, and Rate Analysis said...

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