Well why not differentiate the product by allowing the bank customers choose where the money is getting invested, kiva-style. And yes, there is a ton of risk there but it's unique.
That seems counterproductive. I give my money to the bank precisely because I don't want to bother with estimating borrower credibility myself. Also, as an individual I can not hedge my risk well enough, because I don't have enough money to spread it out effectively.
