peer to peer

P2P market breaks £8bn barrier

Members of the Peer-to-Peer Finance Association (P2PFA) have exceeded £8bn of cumulative lending following a strong first quarter of 2017.

P2PFA platforms facilitated the origination of more than £1bn during Q1, with more than 180,000 investors and 420,095 borrowers participating by the end of the period.

The announcement follows news that P2P lender Funding Circle would cease all development finance lending by mid-2018, with more now expected to follow suit.

Robert Pettigrew, director of the P2PFA, said: “The growth in peer-to-peer lending volumes over the last three months highlights the success which platforms have secured in the market – delivering a permanent shift in the financial services landscape, and providing an attractive offering for investors and borrowers.

“At a time when macroeconomic uncertainty appears to be the prevailing narrative, more than £600m has been lent to businesses through peer-to-peer platforms in the last three months, with almost 37,000 businesses having a loan at the end of the period.

“It is clear that the ability of platforms to provide an offering responsive both to the aspirations of investors and the needs of borrowers has enabled a consistent pattern of growth which any sector would find attractive.”

Of the cumulative total of almost £8.5bn lent so far, Funding Circle and Zopa both provided around £2.2bn each, while RateSetter accounted for an additional £1.8bn.

The first quarter proved to be record breaking for a number of P2P platforms, with MarketInvoice and Lending Works among those reaching important milestones.

Robert added: “The government has repeated its aspiration to consolidate the United Kingdom as the centre of global fintech.

“Undoubtedly, the growth of peer-to-peer lending represents a key part of that story of success, and one which promises to continue serving the needs of the economy.

“[It is] broadening access to investor returns as well as access to finance, and delivering competition in the wider financial services ecosystem to the benefit of consumers and the broader market.”

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