Could banks be looking to acquire P2P lending platforms?

An advisory expert has predicted that banks may seek to acquire peer-to-peer lending platforms that operate successfully through Covid-19.

Frank Wessely (pictured), partner at advisory firm Quantuma, said there could be a good opportunity for banks to look at what P2P lenders could offer them.

Read more: Opportunity for platforms to work more closely with banks

“P2P offers something banks don’t,” said Wessely.

“Banks do not have the technology and what I call the lending engine that P2P lending platforms have.

“It might be an attractive proposition for banks to acquire platforms and use their technology and efficient lending capabilities to drive their growth in lending.

“Banks may be keeping a quiet eye on the sector and if it proves resilient it could be an interesting opportunity.”

Read more: Quantuma: P2P platforms need to prepare for the worst

Daniel Rajkumar, founder and managing director of Rebuildingsociety, agreed and said it’s likely there will be some consolidation between banks and P2P lending platforms.

“I think there will be some partnerships and some acquisitions,” he said.

“In my experience I haven’t seen too many successful examples of joint venturing, the banks like to own what they’re involved in, they like control of the compliance and don’t want risks, which can prove a bit of a challenge.

“But as more people become comfortable with P2P lending and once the best-managed platforms get through the recession, the sector will be in a better position to partner and collaborate with banks and hopefully some will also be standing independently and compete with them.

“I think the P2P industry is here to stay because it helps to create risk capital for enterprise and supports the economy.

“And I think it’s quite possible some of the big platforms will become a bit more like banks and operate in a similar manner.”

Read more: Innovate Finance in talks for P2P lenders to receive cheap BoE funding