36H Group: P2Ps have role to play in cost of living crisis
The 36H Group’s head of platform lending has said that peer-to-peer lending platforms have a role to play in the cost of living crisis, by providing funding to consumers and small- and medium-sized enterprises (SMEs).
Mike Carter said that the trade body is looking at new ways in which Innovate Finance and the 36H Group can support its members as the cost of living rises.
His comments come as the energy price cap is set to rise from £1,971 to at least £3,500. Meanwhile, inflation hit double figures over the summer, with some experts warning that the price of goods could soar by 18.1 per cent by the end of the year.
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“P2P platforms will have a role to play in helping consumers and SMEs through the cost-of-living crisis and we’re looking at this in conjunction with our wider Innovate Finance membership base,” Carter told Peer2Peer Finance News.
He added that the trade body is also working on updating its research on sector returns “which shows that the sector as a whole is not a high risk, high return sector”. This research is due to be released in early 2023.
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“Our short term focus is around the implementation of PS 22/10, some of which must be ready by 1 December, and making sure there are no unexpected issues for the industry in the new rules,” Carter added.
“Also on the regulatory horizon are the Financial Conduct Authority’s (FCA’s) follow-up work on investment classification referenced in DP 22/10, and the results of HM Treasury’s own consultation on financial promotions rules which could have knock-on consequences for the FCA’s financial promotions rules.”
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