The OTC loan is therefore a relatively restrictive solution, as much by its anxiety for the lender as the low probability of being able to use this remedy on the side of the borrower.
It is therefore in this relatively unpredictable universe (on the one hand banks that are content to share the “cake” improperly, on the other hand an inoperable alternative solution) that were born the first platforms of loans to individuals.
For the first time, individuals (but also legal persons other than credit institutions) could therefore carry out credit operations directly to finance the needs of other individuals.
The first platforms
The very first private lending platform (“p2p lending” in English) was born in England in 2005: Zopa. It was quickly followed by other initiatives, notably in the United States: Prosper (in 2006) or Lending Club (in 2007, founded by a Frenchman, Rene Gapbuche).
The principle was simple: thanks to the web, the demand (the borrowers) could finally meet the offer (the lenders) more easily. Some tools of control (and especially the famous positive file, which makes it possible to have a clearer reading of the debts contracted by an individual), others to allow the exchange, and the private lenders could choose the borrowers on which they were going invest.
Very quickly, these platforms have met with some success: Lending Club has for example seen its production of funded credits increase from $ 91,850 in June 2007 to $ 7,693,800 in January 2008! This success made emulators: Germany, China, India, the Netherlands, Italy, Sweden, Japan … all these countries saw the birth of credit platforms between individuals.
b. A flawed system
Unfortunately, the 2008 financial crisis was going to highlight the lack of these platforms.
The banking model, if outdated, nevertheless relies on a solid basis of risk analysis. And the Internet lender can not improvise banking analyst in the evening before sitting down to eat …
So unfortunately, in the absence of a loan pooling system (which dilutes a borrower’s potential default on all lenders), some platforms have had to close (this was the case for Lending Club, for example). improve their system.
Today, most offer options to select “randomly” a significant number of projects and thus invest more borrowers. As the old saying goes, “never put all your eggs in one basket”!
c. And France, in all this?
As we have seen, foreign platforms have experienced major flaws in securing the loan.
Thus, the credit platforms between individuals as they were launched abroad were banned in France. The Banque de France could not grant banking authorization to a system that left such a large part of the risk.