Lendwise: Education niche protected platform despite headwinds
Lendwise co-founder Ioannis Georgiou says the peer-to-peer platform’s focus on education has protected it, despite a challenging market environment.
And now, he is looking to next year, when the group will be launching a new personal loan product.
“We have seen an increase of around 30 per cent in our business this year, in terms of originations,” he said. “Despite the challenges in the economy and interest rates increasing, as well as the cost of living going up, being in this niche market has protected us a lot and we have not seen any deterioration in our loan book.”
Lendwise, which won the Consumer Lender of the Year award at Peer-to-Peer Finance Awards, launched in 2018 and specialises in education loans.
Georgiou said the platform will launch a new personal loan product but given the current economic environment, they are being cautious.
“We know that a lot of people and especially with Christmas coming up may be tempted to get loans that they may have problems servicing. So we are being wise,” he said.
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The group is also reviewing its products and services in light of the new consumer duty and financial promotion regime the regulator has recently mandated for the peer-to-peer market.
“Whilst it’s a stricter environment, we believe it’s for the benefit of the market,” Georgiou added.
On the Lendwise platform, investors can currently expect to earn an estimated average return of up to 9 per cent per annum, according to the group’s website.
Previously, the platform mostly had borrowers coming straight out of university, taking out loans for a masters degree.
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But with the changes in the workplace, the rise of new industries and technological developments, there are more people who are in employment using the Lendwise platform, Georgiou said.
“We are seeing more people who are in employment looking to get additional qualifications, or returning for an MBA, trying to upgrade their skills. We expect this will continue. It’s become apparent to a lot of people that they need to upskill and reskill to stay relevant or get a better position with higher earnings,” he said.
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