Too Long; Didn't Read
The concept of Peer-to-Peer lending is old as the hills, one could argue that it was the first form of lending. This phenomenon started among online forum, where people knew each other, at least they thought they did. In 1998, an online payment processor was founded in Russia. It had several interesting features: multi-tier ID verification. Multi-tier verification. Loans outstanding, repayments, etc. aka: How other people trust you with their money?. The default rate and amount of fraud were crazy. A couple of "WM credit ATMs" are still online, but I doubt their popularity.