Mohamed El-Erian is entering the peer-to-peer lending sector.
The former PIMCO CEO is the main investor in the first $ 12 million fundraiser for a new Orange County-based peer-to-peer lending company called Payoff, according to the Financial Time. Payoff says it will grant loans online more efficiently than traditional banks using a combination of behavioral science and big data.
Unlike other P2P companies like Lending Club and Prosper, which started out by connecting retail lenders and borrowers, Payoff is limited to accredited investors (because that’s where its competition mostly ended up, anyway). .
According to another article in the FT, Payoff has a sense of humor about his plan to disrupt the industry: his head office is full of art poking fun at the traditional financial system: “A photo of the New York Stock Exchange has been scribbled in blue pencil to resemble a casino and titled “Gamblers Anonymous.” A snapshot of bankers buttoned up in Kansas City is called “Not Well Fit.” And a photo of a bank teller behind an old-fashioned cashier’s cage is labeled ‘Gated Community’. “