How blockchain can affect lending

Today, banks continue to be the main source of credit to people and companies. Peer-to-peer lending is a popular niche, but informational asymmetries impede its implementation on a large scale. P2P lending relies on a solid idea. If people deposit their funds in banks and then banks use their customers' money to lend it to other people, doesn't it make more sense for depositors to lend their money directly to borrowers and earn a higher rate of return on their money? Banks seem to be the redundant middleman in this equation, don't they? Their main added value comes from the fact that they arguably have expertise in sorting out good from bad borrowers, and also specialize in dealing with bad debtors once they ...

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