GraduRates, which launched in 2010, has decided to run down its operations and wanted to ensure uninterrupted service to its customers, and as the UK’s largest P2P platform, RateSetter has decided to act as a mediator.
This will also allow RateSetter to widen its borrower channels and ensure a larger volume of high quality loans for lenders to lend against.
Commenting on the news, Rhydian Lewis, RateSetter CEO and co-founder, highlights the wider benefits to the P2P industry: This is a sign of the peer-to-peer lending industry growing up. One of the things the Government is focussed on in the upcoming HMT Consultation on peer-to-peer ISAs is the ability for platforms to wind down in an orderly manner. This agreement between RateSetter and GraduRates will serve as one of the first examples of the peer-to-peer market finding solutions that work in the best interests of customers."
The P2P industry has grown 107 per cent in 2014, where RateSetter has had a record-breaking year with 219 per cent growth and £280 million loaned in the year to date – over £20 million ahead of its closest competitor.
The deal between GraduRates and RateSetter is an example of how two platforms can work together for good customer outcomes.
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