Growth Street sees strong demand from millennials

ALMOST 40 per cent of Growth Street’s investors are under 35 years old, research from the peer-to-peer lending platform showed.

The firm, which channels funds to small- and medium-sized enterprises, said that 37.5 per cent of its retail lenders are 35 years old or younger, contradicting recent criticism that millennials lack savings and investment skills.

Alternative lenders are well positioned to serve this slice of the UK population, the firm added, as they offer more flexible and straightforward financial products than mainstream providers.

“Millennials have traditionally been underserved by conventional investment products,” said the firm’s chief executive Greg Carter.

“In the past, investment products have targeted older individuals with higher disposable incomes, but Growth Street is turning this convention on its head.”

The platform attracted 600 new clients in the five months to April, since it started accepting retail money in December after receiving regulatory permission.

It offers investors up to 6.5 per cent annual returns from 30-day loans, and has recently stepped up its strategy to attract new borrowers by widening its range of free data tools and readying a product for brokers.

“We’re delighted to see that almost 40 per cent of our investors are under 35,” Carter said. “Growth Street’s values are aligned with millennials’ financial philosophy: that investment products should be accessible, fair and simple.”