Lendermarket unveils cashback offer to compete in higher-rate environment
Lendermarket has unveiled a summer cashback offer for investors, which it said “exemplifies our proactive and assertive approach” amid higher bank savings rates.
The Dublin-based lending marketplace is offering investors up to five per cent cashback on their investments, which is the highest incentive it has initiated to date.
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“The primary reason behind this move can be traced to the recent changes in the risk-free interest rates by the central bank,” Lendermarket said.
“This has sparked a heightened level of competition amongst retail banks, as they strive to keep pace by increasing their deposit interest rates. With these changes afoot, we at Lendermarket recognize the need to match, and indeed exceed, these shifting dynamics to offer a more attractive package to our investors.”
The offer comes after Lendermarket recently saw its total account value reaching €50m, and the addition of a fifth loan originator to the platform.
“The continuous flow of investment capital now standing at €50m from our investor community serves as the essential fuel powering these businesses, enabling them to expand, innovate and deliver quality credit products,” Lendermarket said.
“But with the rising interest rates, there’s an increased risk of capital being diverted to traditional retail banking. By providing an attractive up to five per cent cashback, we aim to maintain the steady flow of investment that these businesses need to thrive, while simultaneously offering our investors the opportunity to earn more from their investments.”
Lendermarket told Peer2Peer Finance News earlier this year that it was looking for more originators.
“One of our top priorities for this year is to bring additional diversification to the platform for our investors,” said Lendermarket’s chief executive Endrik Eller at the time.
“We believe that in order to have a healthy portfolio it has to be well-diversified, and we are striving to offer just that to our investors.”