This can create a new bad credit bubble.

If no one gives an "Alice" a loan, it's because she has no means to repay it. So how does improve her ability to pay if she is vouched by 10 "investors"? I don't see any improvement except that the lender will get paid anyway either from Alice or from the "investors". Basically what this system is doing is allowing the lender to sell a bad loan to an investor, does it sound familiar?

Let's create solutions that make the world a better place and not even worst than it already is.