Plenti to “reinvigorate” P2P platform
Plenti – the platform formerly known as RateSetter Australia – is thinking about “reinvigorating” its P2P lending business amid rising interest rates and higher demand among retail investors.
The platform’s chief executive Daniel Foggo told the Sydney Morning Herald that it “makes a lot of sense” to get more funding from its P2P platform given the ongoing volatility of global stock markets.
“As a lending business we do have various sources of funding. We think it makes more sense to allocate loans to these investors because there’s a cost advantage for us,” Foggo said.
“I think we’ve seen people who have seen a lot of volatility in the stock market, and who have seen good stability of returns they have been able to earn on the Plenti platform.”
Plenti completed its AUS$55m (£30m) initial public offering on the Australian Securities Exchange (ASX) in 2020, and since then it has announced two securitisations and grown its loan book to more than AUS$1bn.
It provides personal loans, car loans, and renewable energy loans to consumers across Australia. However, over the past year the platform said that its wholesale borrowing costs have risen from about three per cent to between six and seven per cent as interest rates had risen. This presents an opportunity for retail P2P investors, Foggo said.
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