The competitive advantage of online businesses, Lending Club Edition

If you believe the hype, peer-to-peer lenders are coming of age

via Lending Club: Peer pressure | The Economist.

This is super interesting.  Marketing costs are pretty high for Lending Club, relative to offline incumbents.  But the other costs are non-existent.  Goes against the (easier to scale users) argument that a lot of these online firms use and it’s consistent with stories I’m hearing of well funded startups with high user acquisition costs.