Speaking at the Future of Regional Banks Conference in Whitehall yesterday Thomson said he was a fan of the P2P model but was concerned about the inherent risks of the system.
He said: “I like the Peer to Peer model. However, there is a high risk attached to it.”
Thomson also warned that consumers don’t tend to understand the model and said it could prove to be a potential pitfall.
He added: “Something will go wrong at some point and the government will have to intervene.”
Sajid Javid, financial secretary of the treasury, said he was a fan of the model but agreed there would need to be further oversight.
He said: “Peer to Peer is very welcomed as an alternative way of lending. However, the industry does need to be regulated and we will be making an announcement about it shortly.”
