[Viliam1234]

The profit made by the bank needs to also cover the cost of employees, bureaucracy, huge buildings, etc. For a peer-to-peer lender, even tiny profit is enough.

As an example, imagine that you lend someone $100, and there is a 50% chance they will pay you back, and in that case they will pay you $210. And all this costs you is a mouse click. Some individual would click "yes". In their free time.

Now in the bank, there is an employee doing this as a part of their paid job. They have a manager, that manager also has a manager, plus you need to pay the janitor, etc. You also need to pay diversity training for all of them. And all financial transactions they do must follow all kinds of regulations, which regularly change. Simply, the overhead is not worth it.

[ksec]

$100 > $210 is an ridiculously high interest rate. In a world today where borrowing cost for a lot of people are ~10% APR.

But I do see mobile payment and mobile borrowing could be mounted together.