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Social networking sites based around money-lending could be the next big thing on the web, according to a report from the Social Futures Observatory (SFO).


The SFO predicts that sites such as Zopa will be where internet users go to get a loan, rather than online banks.



According to the SFO 74 per cent of Britons would consider loaning or borrowing money in these 'social lending marketplaces'.



Sites like Zopa operate on the basis of connecting two people, one who wants to borrow and one who is prepared to loan the money, who can settle on an amount and interest rate that suits both parties. Zopa was launched by some of the people behind online bank Egg and it currently has around 105,000 members in the UK.



One of the authors of the study, Professor Michael Hulme, said: "the success of Community Lending Sites and the stark contrast with traditional banking lies significantly in their providing genuine opportunities for control, choice and transparency for the participating member."



According to the report, 80 per cent of people who have borrowed money using Zopa said that they secured a lower interest rate than they have been offered by high street banks.



"Zopa allows people to get a much better financial deal than what's on offer on the high-street - lower rates of interest for borrowers, and a great return on investment for lenders. But the additional benefits which include much greater transparency, social interaction and control are things that the big banks just don't offer and are very appealing to people who want to invest in other people rather than in institutions," said James Alexander, chief executive of Zopa.

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