ST. PAUL, Minn. — Organizers of the social network lending pilot launched by British-based Zopa Ltd. said credit unions' role is certain to climb soon, considering the participation of the big Member Gateways consortium of South Bend, Ind.

Just how many of the 24-CU Member Gateways system–including some of the largest credit unions in the U.S.–might begin offering the 'peer-to-peer' online service this month was uncertain as the London firm began broadening its marketing effort beyond the initial November publicity blitz.

“I was looking at our numbers of both lenders and investors last week and I like what I see since we are going after a new demographic here in something pretty exciting,” declared Kyle Markland, president/CEO of the $1.1 billion Affinity Plus Federal Credit Union of St. Paul, referring to Zopa's pilot lending model.

This pilot is an adaptation of Zopa's European version, which in the U.S. matches U.S. credit unions with borrowers and investors through an NCUA-insured CD purchased through the credit union. To become a Zopa lender, however, an individual must become a credit union member.

The first six credit union participants in the program contend the Zopa product has great potential in reaching the very youthful “Generations X and Y” comfortable with popular viral Web sites like “Facebook” and “My Space.”

Beside Affinity Plus, others in the pilot CU group include Addison Avenue FCU, Palo Alto, Calif.; USA FCU, San Diego; Forum CU, Indianapolis; First Technology CU, Beaverton, Ore.; and Provident CU, Redwood City, Calif.

“Yes, I expect there will be our members joining as partners in 2008 beyond the original six and on that we've been working with the Zopa staff,” Member Gateways CEO Victor Pantea said.

Zopa's U.S. operations have been run out of its San Francisco office but officials there have declined for the moment to identify new participants or divulge much data on how the pilot venture is progressing.

The existing credit unions, however, profess their enthusiasm for the venture so far arguing such a concept takes time to catch on.

“We've certainly noticed the excitement building in all our markets where there have been news articles and you'll see more once the real marketing begins in January,” forecast Stuart Fisher, vice president of business development at the $2 billion Addison Avenue FCU.

He said articles on the Zopa debut, which stress the CU 'people to people' branding, have appeared in newspapers and business journals along with TV segments in Houston, Dallas, Denver, and Palo Alto, adding and there was a Wall Street Journal article in mid-November.

“The Zopa program has an extremely high potential for member acquisition,” contends Pantea.

Wade Lagrone, vice president of marketing for Zopa's U.S. operations, called the participation of Member Gateways “fortunate,” praising the organization's record in product innovation.

Member Gateways, which has long pioneered Internet and retail delivery products and systems, represents “a smart and creative group of people,” he said, which has compiled a record “of rolling up their sleeves and turning ideas into businesses.”

Among Member Gateways' owners is Washington consulting firm Callahan & Associates, as well as the $4.2 billion Patelco CU of San Francisco and $2.6 billion Bethpage CU of New York.

Beside Member Gateways, also figuring in the credit union connection with Zopa are members of Filene Research Institute and i3 representatives involved in product innovation.

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