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.

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