If you believe the hype, peer-to-peer or marketplace lending brings people together to connect investors with creditworthy borrowers who want a loan. Positioned as being alternative and efficient, peer-to-peer does sound very cool.
The truth behind the marketing though is somewhat different. What is marketed as a P2P connection is in reality wholesale or institutional funds being made available for loans. It is for profit lending pretending to have a human face.
Mutual banking institutions however are the original peer-to-peer lenders. Mutuals are groups of people who gather together to provide each other with a secure place to save and a source of reasonably priced loans. By pooling their resources members help themselves and each other to achieve economic and social improvement. Select Encompass is the original peer-to-peer lender, since 1953.