Archive for November, 2010

ireland’s quagmire presents an interesting opportunity

November 28, 2010 Leave a comment

Right now most if not all of Ireland’s banks are more or less worthless; their shares are worth mere pennies and they have no capital left to lend to businesses and individuals. Although the government has quickly tried to inject some capital into the banks to keep them afloat, this has not prevented more Irish people from withdrawing all their cash and fleeing from banks  as if they were the plague! This could actually be a very interesting opportunity for budding P2P entrepreneurs , this is because very shortly, people will desperately need capital and the banks will be turning the other way as they have nothing to offer. Some one or something could actually take the place of the banks and make a healthy profit at that! If I was in Ireland, with my money in Anglo-Irish Bank I would NOT trust banks every again! so, hopefully there are a couple of smart  P2P entrepreneurs out there in Ireland who would be able to set up shop online quickly and put together needy borrowers and willing lenders.. myAzimia is here to help should you wish to get your platform investment ready quickly! God’s speed to you!

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would you lend money to your facebook friends??

November 10, 2010 4 comments

I have about 220 facebook friends at the moment, if they all decided to lend me just 100 quid I would have enough cash to do quite a number of  things including re-model my kitchen, put down a year’s lease for our new office and possibly buy about two laptops! A new site has been launched in the UK called Quakle They are a peer to peer lending site that faciliates lending between borrowers and lenders. They apparently check credit worthiness by analysing what connections the borrower has online in terms of ‘social rating’. They have now added other factors such as external credit checks due to lenders demanding this, but they still base their social ratings on what the borrowers do online.. forget about going to the bank branch, just get 1000 facebook friends, Twitter until the cows come home, get yourself on mySpace and Bebo and you’ve built yourself an enviable credit rating! Only time will tell how sustainable this interesting model will be, but it is a very interesting shift in to banking 2.0 in a social media context that is worth watching!

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25 reasons why you should not invest in microfinance companies

November 1, 2010 Leave a comment

I read a seething  here  that gives 25 reasons why microfinance companies are as unwise as buying mortgage derivatives pegged on the American home loan market! The writer is clearer very very agitated and goes into extreme lengths to describe the compensation packages of the members of the SKS Board -the first microfinance company in india to go public.(See earlier post Do IPOs work in the microfinance industry). Some of his remarks are plainly written in anger although some points raise valid points such as the 18 suicides that have occurred in Andra Pradhesh which is the region that SKS operates in and has huge market share in terms of its loan book. The post is limited in fact and fails to detail the good things that microfinance has done in some of the poorest areas in India nd Bangladesh, Prasana focusses on the areas that we all agree need to be reviewed as far as microfinance is concerned such as regulating interest rates, controlling multiple borrowing  and overall regulation in the sector. My view is that there should be a more balanced view on microfinance rather than this one which is hugely one-sided!

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