Lending Club can often be referred to as a peer to peer lender ; however this is n't how it acts . The majority of people tend to think that banks use deposits to fund loans , however Lending Club make a loan that bonds up with investors who have extra cash which they use to supply the credit . Therefore it is n't true that Lending Club will act by eliminating financial intermediates in the transactions between buyers and buyers .
Lending Club can often be referred to as a peer to peer lender; however this isn't how it acts. The majority of people tend to think that banks use deposits to fund loans, however Lending Club make a platform that bonds borrowers with investors who have extra cash which they use to supply the credit. Therefore it isn't true that Lending Club will disturb by eliminating financial intermediates in the transactions between buyers and sellers.