Christine Farnish of the Peer-to-Peer Finance Association delivered a robust defence of peer-to-peer lending this weekend, declaring it 'less risky than the stock market' and comparing the new generation of lenders to Google for their innovative potential.
Ms Farnish also criticised the management of troubled retailer BHS this morning, for failing to manage the company's finances and balance their responsibilies to customers, pensioners and shareholders.
“We’re the Google generation of financial services”
Ms Farnish told the Telegraph: “We’re the Google generation of financial services,” she said. “We’ve got none of the baggage [of the banks].” Peer-to-peer lenders like Zopa and Money&Co are abale to deploy sophisticated credit approval technology in their businesses, while banks are notorious for the complexity of their 'legacy' IT systems which go back to the seventies in some cases.
If the troubles at BHS are anything to go by.we'd suggest equity crowdfunders are as good as mainstream investors at responsible risk management. The current and previous managements of this iconic British retailer seem to have taken far too much money out of the company, and left it unable to meet its liabilities.
Ms Farnish focused on the company's pension fund. City AM reports her as saying the pension scheme actuary "should have negotiated with [BHS] to ensure that more contributions were paid in at the earliest possible time."". Ms Farnish was previously the CEO of the National Association of Pension Funds, so her words carry some weight
The world of crowdfunding and peer-to-peer lending is fortunate to have a consumer champion like Christine Farnish speaking on our behalf.