Investor marketing restrictions have become a requirement for the peer-to-peer lending sector but new customers will have different experiences depending on which platform they choose. Under the new Financial Conduct Authority (FCA) regulations, which came into effect on 9 December, all new investors must complete an appropriateness test to ensure they understand the risks of […]
ZOPA’S winding-down safeguard fund is now covering just £75m of loans, as the peer-to-peer lender warns that provision funds create a “false sense of security”. Zopa closed its safeguard fund to new loans in December 2017 and said while there is just £1m to cover the old portion of its loanbook, it is still funded […]
PROJECTED returns after fees and bad debts have fallen in Funding Circle’s German business but remain stable across the peer-to-peer lender’s other locations. A fourth-quarter loan performance update from the London-listed platform revealed projected annualised returns for loans granted after fees and bad debts in Germany last year was 4.7 to 6.7 per cent. This […]
The House Crowd has started phasing out self-select loans as it launches a new auto-invest model from today (15 January). The peer-to-peer development and bridging lender said focusing on an auto-invest model would boost platform liquidity and improve the investor experience. Under the new model, investors can choose from cautious, balanced and bold products targeting […]
Brokers helped originate almost £15bn of lending last year, with most coming from new borrowers. Analysis by the National Association of Commercial Finance Brokers (NACFB) found that its members helped arrange £14.9bn of loans in 2019, of which 65 per cent were new business and 35 per cent were from clients seeking to refinance. The […]
Robo.cash has revealed that it doubled its lending volumes in 2019 from the previous year, boosted by an influx of new investors. The European peer-to-peer lender, which is headquartered in Croatia, said that it financed €80m (£68.6m) of loans in 2019 – double the amount it lent out in 2018. This brings total lending to […]
Funding Circle is marking a record year for its partnerships team, having facilitated £150m of lending to date through the department and £65m during 2019. The peer-to-peer lender has referral arrangements with banks such as Santander and business consultancy ActionCOACH. It also signed a deal with accountancy TaxAssist at the end of 2019. Arrangements set […]
THE NEW trade body for peer-to-peer lenders has confirmed that it will not publish regular member loanbook data. Its predecessor, the Peer-to-Peer Finance Association (P2PFA), previously published loanbook data every quarter, showing the levels of new and cumulative lending as well as the number of borrowers and investors for the UK’s largest P2P platforms. The […]
THE BIGGEST peer-to-peer lenders in the UK – Zopa, Funding Circle and RateSetter – have taken decidedly different approaches to their growth. The world’s oldest P2P lender, Zopa, has been focused on launching a digital bank to complement its consumer P2P lending business. Meanwhile business lender Funding Circle has launched an initial public offering (IPO) […]
Will financial advisers drive the next phase of growth for the Innovative Finance ISA? Hannah Smith reports THE INNOVATIVE Finance ISA (IFISA) has been slow out of the starting blocks since its 2016 launch. But with growing investor awareness of the product, it is finally gaining traction, boasting £1bn in assets under management last year. […]
MOST Rebuildingsociety investors are passing the peer-to-peer lender’s appropriateness tests within two attempts. A platform spokesperson has revealed the team was initially worried that its test could deter customers, as it is longer than those presented by other P2P platforms. However, only one per cent have failed to complete it so far. “Having always had […]
Assetz Capital is considering joining Innovate Finance’s new 36H Group but has warned the P2P lending sector has to overcome a branding challenge first. Stuart Law (pictured), chief executive of P2P lender Assetz Capital, said it was no surprise the Peer-to-Peer Finance Association (P2PFA) was being replaced by the 36H Group. “The P2PFA never really […]
The House Crowd founder and chief executive Frazer Fearnhead explains why the North West is particularly attractive for peer-to-peer property investors… OVER THE PAST FIVE years, various legislative changes have made it virtually impossible for a private investor to build a profitable buy-to-let portfolio. However, property is still undoubtedly viewed as an attractive asset class. […]
FORMER Peer-to-Peer Finance Association (P2PFA) member Folk2Folk has ruled out joining the newly formed Innovate Finance 36H Group. The rural peer-to-peer business lender was a member of the P2PFA, which has now disbanded with platforms instead forming a group within fintech trade body Innovate Finance. Zopa, Funding Circle, RateSetter, Lending Works and CrowdProperty have all […]
RATESETTER has defended its provision fund following a report that the contingencies put in place by peer-to-peer lenders risk running dry. The Times reported on Saturday (11 January) that the contingency funds put in place by Zopa and RateSetter are at risk of not having enough money in place to cover estimated losses. Zopa closed […]