A month-by-month guide to P2P in 2021
2021 has certainly been a memorable year for the peer-to-peer lending space.
Much has happened, with platforms bouncing back from Covid, supporting businesses and passing many milestones while also innovating and keeping an ear to the ground about potential regulatory changes.
Here’s Peer2Peer Finance News’ round-up, month-by-month.
January
The British Business Bank launched an investigation into Covid loan fraud, Crowd2Fund said it was set to relaunch its secondary market, Invest & Fund celebrated its busiest few months on record and Kuflink passed the £100m lending milestone.
ThinCats revealed it had achieved record lending volumes while Funding Circle, JustUs and Loanpad forecasted profitability. Meanwhile, the UK Crowdfunding Association (UKCFA) slammed proposed new consumer investment regulations.
February
The House Crowd entered into administration, Octopus Choice permanently closed and the Financial Conduct Authority (FCA) placed restrictions on Buy2Let Cars. MoneyThing’s first administration report was published.
On a more positive note, we reported on the launch of P2P platform Connective Lending, while the Kalifa Review was published.
March
Buy2Let Cars entered into administration.
Chancellor Rishi Sunak unveiled the recovery loan scheme (RLS) to help businesses grow amid the pandemic.
London Capital & Finance (LCF) administration costs rose and the High Court ruled against further compensation. Grupeer tool legal action against loan originators and FundingSecure investors won their legal battle over a fee dispute.
April
Simple Crowdfunding said it will soon resume P2P lending, while Lending Works reduced its negative rates and started paying interest again.
The RLS opened, Metro Bank started offering RateSetter loans in its branches and Blend Network gained direct FCA approval.
Charlotte Crosswell announced her departure from Innovate Finance and the Treasury launched a £120m LCF redress scheme.
May
P2P platforms hit out at the FCA’s proposals for additional regulations.
Peer2Peer Finance News learned an IFISA working group had been established to address the ISA responsibility gap between the FCA and HMRC.
The House Crowd’s founder and chief executive Frazer Fearnhead refuted accusations that he had misappropriated business funds.
Funding Circle was accredited to the RLS, GLI Finance rebranded to Sancus Lending Group and CrowdProperty launched in Australia.
June
FutureBricks announced its upcoming exit from retail P2P.
LCF bondholders filed a judicial review appeal and complained about the FCA while Lendy investors faced withdrawal delays.
July
JustUs relaunched its platform and CrowdProperty secured a £300m institutional funding line. Both Assetz Capital and ThinCats were accredited to the RLS.
The UKCFA responded to FCA financial promotion proposals and the 36H Group started collecting data.
LendInvest filed an initial public offering (IPO).
August
Assetz Capital returned to profit and CrowdProperty raised £1.8m in equity funding.
Meanwhile, the FCA wrote to P2P platforms, outlining its concerns about secondary markets.
The Lendy Action Group won a legal victory, LCF bondholders withdrew their judicial review and a Crowdstacker project was involved in a landmark legal ruling.
September
Funding Circle released bumper first-half results and revealed that co-founder and chief executive Samir Desai was stepping down.
The FCA said it is aiming to halve the number of investors in high-risk products, as part of a three-year strategy to enhance consumer protections.
October
Charlotte Crosswell joined the Open Banking Implementation Entity as chair, CrowdProperty Australia raised AUS$1.5m (£810,000) and the RLS was extended with major changes.
Zopa raised $300m (£220m) in a pre-IPO fundraise and said it was reviewing the strategic direction of its P2P platform.
November
Assetz Capital resumed retail development lending and Folk2Folk secured a £7m funding line.
New EU crowdfunding rules came into force.
The FCA said it expects to publish a policy statement on high-risk investment rules next year.
December
Zopa and Lending Works announced plans to exit P2P while LendingCrowd and Funding Circle remain closed to retail. The 36H Group said the trade body still has a future.
The FCA cracked down on appointed representatives and its chief executive defended the watchdog on accusations of a lack of focus on fintech.
