|
The management team believes the market opportunity for WikiLoan is significant, relative to the ongoing financial crisis, bank consolidations and changing consumer behavior regarding online lending, borrowing and banking, as outlined below:
The Credit Squeeze
Globally, the recent credit squeeze has led banks to increase interest rates, tighten their lending practices and institute ever tougher borrowing requirements, making it increasingly difficult for would-be borrowers, particularly those with credit challenges seeking small loan sizes of $25,000 and under, to gain access to capital via traditional lending institutions.
The Lending "Gap"
Current market conditions have created an opportunity for private lenders to step-in and fill the small loan lending "gap" increasingly vacated or made more difficult to access by traditional lending institutions. In response, individual lenders and borrowers are connecting directly with one another online, without the use of a financial institution or "middle man", for the purpose of exchanging capital through peer-to-peer lending.
Peer-to-Peer Lending
Peer-to-peer lending is one of the fastest growing sectors of the financial services industry, a trend that is expected to continue for the foreseeable future
|
