Basically, he wants to disrupt the loan business monopoly that the banks enjoy.

By removing traditional banks as the middleman, marketplace lenders can use their spread advantage to offer lower rates to borrowers and better returns to lenders. Borrowers on marketplace platforms pay closer to 10% interest, a third less than the average of what is paid to banks or credit card companies. And instead of receiving 1% interest for keeping their money in a CD, active lenders on marketplace platforms receive, on average, an 8% return on their investments.

I believe marketplace lending will increasingly encroach upon – and take market share from – traditional banking. I believe this will happen across lending (consumer, real estate, SMB, purchase finance), payments, insurance, equity and beyond.