Site Name: Zopa
Description: Removing intermediaries from transactions often benefits consumers. In the case of Zopa, banks are removed from the lending process to facilitate peer-to-peer lending resulting in lower transaction costs and potentially lower rates for borrowers and higher returns for lenders. Zopa introduced person-to-person lending in Europe 18 months ago and plans to launch in the United States soon. Once Zopa starts in America, interested borrowers and lenders should visit Zopa online and register as either a borrower or lender. According to Business 2.0, the average rate on a Zopa loan is 7%, beating CD returns for lenders and credit card or bank loan rates for borrowers.
Features: In addition to lending and borrowing facilitation, Zopa's site features a blog and discussion board.
Profile of Site Founders: Started by many of Egg's founders, Zopa's founders have experience in personal finance, banking, and risk management.
Bottom Line: After 18 months in the United Kingdom, Zopa is ready to conquer America. With over 90,000 members already, Zopa offers individual lenders and borrowers a convenient way to cut expenses and boost returns.