Not sure the network effects are as strong as in other marketplaces, but to date, marketplace lending definitely has been a successtory....question is how these marketplaces developed we see much more B2B2C models emerging
Although the Uber of Banking tag does not make sense, narrow it to marketplace lending and the tag is certainly appropriate. The reason is simply network effects. Banking as a whole is a service business not a network-effects business. My decision to use bank x rather than bank y does not influence anybody else’s decision. Marketplace lending is different. More borrowers attract more lenders and vice versa. In a network-effects battle, the players amass massive war chests. The recent $1 billion raise by SoFi shows that it has joined Lending Club and Prosper in an intense network effects battle.