Yes! The beginning of the end for traditional banking…

Nexx is almost live. In the words of it’s founders, Nexx intends to;

…be New Zealand’s online marketplace for social lending. We’ll allow people to lend and borrow directly with each other, without greedy banks and unpredictable finance companies in the middle.

Banks have it pretty god, they exist in a vacuum, protected by central bank regulation and with a vice like grip over lending that enables them to make super-normal profits.

Nexx enables borrowers to list their needs and lenders to pledge funds at an interest rate acceptable to them – thus cutting out and inefficiencies in the system.

Questions that I have, which will no doubt be answered by the time Nexx goes live are;

• What ensures security for the lender
• How does Nexx make it’s money (I assume a cut of the interest) and how does this compare to what banks charge

In principle Nexx would seem to be an excellent development for peer to peer finance in this country.