Thanks to Nishad Ramachandran for coining this phrase in what the Economist has been calling Branchless banking. This is the notion of depositors and lenders finding each other through internet, and eliminating the need for traditional banks. I read a preview of Nishads paper that is being developed for a client, and it frames the concept beautifully. The reference I especially liked is to Payattu, and its beautifully written to capture the essence of the concept. "As a child, I would trail my uncle to many of the Payattu invitations he received. In a Payattu, one member of a community … Continue reading Open Source Banking

Intriguing idea here which is a slightly different slant on the disintermediation of banks. When eBay began, there was talk then of auctions playing a role in intermediation between borrowers and lenders. This idea goes further and presumes willing lenders amongst ordinary people seeking better returns on their money. Economist.com | Articles by Subject | Person-to-person finance Catherine Graeber of Forrester Research, a consultancy, is intrigued by the idea, particularly because it might attract 18- to 28-year-olds who need credit and spend hours logged on to social networking sites. These people, says Forrester, are much less likely than their parents … Continue reading Bankless banking

Economist.com | Articles by Subject | Person-to-person finance

THE internet age was supposed to herald hard times for the middleman. Customers, so it was said, would flock to the web to buy products and services faster, cheaper and more transparently than in shops or through intermediaries. Disintermediation has indeed come about, as any out-of-work travel agent or bookseller will tell you. Yet retail bankers�the middlemen between savers and borrowers�have been surprisingly untouched.
Continue reading “Bankless banking”