Quote Originally Posted by caparica007 View Post
OK, so basically relatively small amounts are involved and some screening is made so the risk is reduced and the profits cover it, nicely done. I wonder why the banks can't do the same...
Banks do the same. These people getting peer to peer loans are those who didn't make it past the bank's screening process.
Banks are loaning their own money whereas p2p loaning services are just providing a service for investors to loan their money, so naturally these companies are not as worried about defaults as banks are.