RateSetter’s acquisition by Metro Bank represents one of the most significant deals in the peer-to-peer lending space, but it is just the latest in a long line of deal activity – and rumours – at the P2P lending platform. Peer2Peer Finance News looks at RateSetter’s history of acquisitions, mergers, IPOs, and more… Read more: What’s […]
Bad debts caused by Covid-19 will cause banks to lose less than £80bn, the Bank of England has predicted. In its financial stability review, the Financial Policy Committee (FPC) judged that banks’ credit losses from loans set to go sour due to the coronavirus will be “somewhat less than £80bn”. This was slightly better than […]
Australian analysts have queried the viability of RateSetter Australia’s mooted AUS$300m (£164m) initial public offering (IPO), following the sale of RateSetter’s UK business. RateSetter was acquired by Metro Bank earlier this week in a deal worth up to £12m – far less than the estimated £25-50m that was predicted. Australia’s Financial Review has reported that […]
Trade bodies and business leaders have called on the government to close the widening growth capital gap for innovative businesses, including those in the fintech sector. A new report titled ‘The Future of Growth Capital’ highlighted that closing the £15bn difference between the demand for and supply of growth capital – the financing that enables […]
Kroll Bond Rating Agency has downgraded six tranches of a Funding Circle US securitisation, citing higher-than-expected borrower defaults as a result of the coronavirus crisis. The rating agency affirmed the transaction’s Class A notes, but downgraded its six Class B, Class C, and Class D notes, after placing them on watch downgrade at the end […]
Assetz Capital has applied for a £10m grant under a government scheme to encourage competition in the banking industry, as the platform continues to scale up its business lending. The peer-to-peer lending platform intends to use the Pool E Banking Competition Remedies (BCR) grant to help deliver its aim of lending a further £1bn to […]
The Financial Conduct Authority (FCA) has warned that repeat borrowing from high-cost credit providers could indicate serious financial difficulty, as it called out poor practices among some lending firms. A review carried out by the City watchdog of the borrowing history of 250,000 consumers found that nearly half regretted borrowing more money. It criticised high-cost lenders […]
James Dingwall, founder, and chief executive of Thistle Initiatives, delves into the current compliance challenges facing the peer-to-peer lending sector It’s fair to say that the alternative lending sector has faced challenges in recent years, with the regulator’s beady eye right on point. The Financial Conduct Authority (FCA) has scrutinised mini-bonds and listed bonds and […]
Rebuildingsociety has partnered with Virtual Finance Director (VFD) so that the platform’s borrowers can receive reports on their accounts, future cashflow projections and help with loan applications. The platform has plugged in with VFD, giving its borrowers free access to the accounting software. It acts as a finance director for firms and produces reports on […]
Nigel Morris, co-founder of credit card giant Capital One, has stepped down as a non-executive director of Zopa’s board after three years in the role. Morris joined the peer-to-peer lender’s group board in May 2017, as part of an investment by QED Investors, where is he managing partner. A filing by Zopa on Companies House […]
US peer-to-peer lending platform LendingClub saw its loan originations fall by 90 per cent year-on-year in the second quarter, which it attributed to the Covid-19 crisis. The platform’s loan originations dropped from $3.129bn (£2.385bn) in the second quarter of 2019 to $325.8m (£248.3m) in April, May and June this year. The lender achieved a net […]
Anti-money laundering specialist Kompli-Global has launched a new regtech solution called Kompli-Reveal to help weed out “bad actors” and fraudsters. By using a combination of augmented intelligence (AI) and human expertise, Kompli-Global said that it will screen existing client bases for organisations to reveal their real-time status and to flag any irregularities. The tool has […]
Metro Bank could be positioning itself as a rival to traditional peer-to-peer lending platforms, as the struggling bank seeks to bolster its lending business. The challenger, which on Wednesday reported a £240.6m first-half loss, recently acquired ‘top three’ platform RateSetter in a deal worth up to £12m. Goodbody analyst John Cronin has suggested that the […]
The British Business Bank has approved three more lenders to deliver the coronavirus large business interruption loan scheme (CLBILS) to support larger firms hit by Covid-19. The bank has accredited the Allied Irish Bank, Investec Bank and Mercedes-Benz Financial Services UK Limited for the scheme. CLBILS provides finance to mid-sized and larger UK businesses with […]
RateSetter’s low sale price to Metro Bank has led analysts to query whether the peer-to-peer lender was under pressure to do a deal. It was confirmed on 3 August that Metro Bank was acquiring RateSetter in a deal worth up to £12m – far below the £25-50m estimates that were initially floated. Neil Faulkner, chief […]