Web-based peer lending will eventually compete with the "Too Big to Fail" banks because of its efficiency and transparency, says Renaud Laplanche, CEO at Lending Club. Laplanche says Lending Club's technology and lack of branches enables it to pass on cost savings to borrowers in the form of lower rates. Meanwhile, he says investors in consumer credit get the opportunity to earn a steady return and diversify into a different asset class. Finally, Laplanche says both sides are heavily regulated.

If you liked this article you might like

Citigroup Gives CEO Corbat 48% Pay Raise as Profitability Misses Goal

Citigroup Gives CEO Corbat 48% Pay Raise as Profitability Misses Goal

Worst-In-Class Goldman Sachs CEO Blankfein Gets 9% Pay Raise

Worst-In-Class Goldman Sachs CEO Blankfein Gets 9% Pay Raise

Here's One Hint That S&P 500 Stocks Are a Screaming Buy

Here's One Hint That S&P 500 Stocks Are a Screaming Buy

Bitcoin Today: Prices Rally Ahead of Chinese New Year, Moody's Weighs in on Risk

Bitcoin Today: Prices Rally Ahead of Chinese New Year, Moody's Weighs in on Risk

Federal Reserve Who? Stocks Have Historically Done Great With Rising Rates

Federal Reserve Who? Stocks Have Historically Done Great With Rising Rates