Editorial

Editorial

The Editorial is the purest expression of Stears' peculiar editorial stance. It analyses issues, drawing on theory and empirics to outline the competing assumptions for issues; each time drawing conclusions that can be elicited, so as to give a comprehensive yet indefinite picture.

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Peer to peer lending: from Nigerians, to Nigerians

Editorial Board

Editorial Board

The Editorial is the purest expression of Stears' peculiar editorial stance. It analyses issues, drawing on theory and empirics to outline the competing assumptions for issues; each time drawing conclusions that can be elicited, so as to give a comprehensive yet indefinite picture.

This article was produced on behalf of FINT, a Nigerian peer-to-peer lending platform, as Stears explores marketplace lending in Nigeria.

 

Today, most disruptions promise to take humanity into the future, but some take us back to simpler times. Peer-to-peer lending is the oldest form of lending in the world. Before there were banks, people would lend money and property to each other. Stories and instructions on lending can be found in the oldest texts, and the concept of usury received attention in the earliest religions.

When societies were small and closed-off, people lent freely among themselves based on trust. At worst, the lender believed that he could take up his case with the local community. But as globalisation and technology came, people began to migrate, and personal lending became inefficient. The solution? Banks.

But banks have problems; in some cases, they are too big to fail, and in others, they are unable to satisfy customer needs. Today, technology and globalisation have now created a world where personal lending makes sense – by making the world small again. 

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