Could community banking be the future?

Can anyone help Opencast's Charlie Hoult with a banking licence?

"Yes. I have found the next big thing. It’s a bank.

Or, should I say, it’s something to replace trust that people have lost in all banks. Every single one. So, what’s the brand that could launch a bank - where folk would trust that it hasn’t derivatived-up the whole thing? Thames Water or Tesco?

Yer, but, also… it’s gotta be in there with the whole internet thing. You trust YOUR community. Because you don’t leg over your mates… which brings banking, for me, back to its roots (or the Building Society roots of mutual support)… with a new digital twist."

Zopa has had a crack at this model using investments from community members to fund loans to community members. It is currently reporting £500,000 on its market available for lending. I signed up in August last year as a lender. I've reinvested all repayments and to date I've had no bad debt and a return of approximately 10 per cent before tax including Zopa bonus payments.

Could this be the future?

Tags: bank, charlie hoult, zopa