Here’s a domain where it looks like Moore’s law and his friends could be very disruptive; particularly if you mix in some statistics, some small groups, and a means for individuals and groups to accumulate reputation.
Changing how intermediation works in the lending business. Some examples.
- Circle Lending — Loan servicing Brokering the loans is done privately, presumably via the parties existing social network; e.g. between family, friends. coworkers. The value proposition here is how it temper the risk that the tedium of servicing the load will affect their original relationship.
- Zopa — Broker and service arbitrary loans. Risk managed via pooling funds, pooling loans, credit ratings, and optional insurance. The value proposition here is a smaller cut for the middleman (compared to a bank say).
- SBA MicroloansMicroloans, or Micro Finance — in this case local groups intermediate to lower and pool risk while wealthy lenders provide funds.
- Prosper – affinity groups, capital pooling, greater gap between the borrower and lender, and better risk diversification.