About P2P finance

What is P2P finance?
Peer-to-Peer (P2P) Finance is an innovative way of enabling consumers and businesses to borrow and lend money. P2P enables people who have money to put it to work for competitive returns through lending to other individuals or businesses online. P2P was pioneered in the UK in 2005 and by Q4 2015 platforms have enabled lenders to provide over £4.4billion of funds to UK consumers and businesses, with expectations that the sector will continue to double in size every six months going forward.

Is P2P lending regulated?
From April 1st 2014 the peer-to-peer lending industry became regulated by the Financial Conduct Authority. The regulation requires peer-to-peer lenders to have minimum operating capital requirements, meet client money requirements and adhere to a disclosure based regime. Here is a link to the FCA’s summary guide: https://innovate.fca.org.uk/innovation-hub/summary-rules-loan-based-crowdfunding-platforms
For the Regulatory Activities Order of what constitutes regulated P2P lending -see article 36H http://www.legislation.gov.uk/uksi/2013/1881/article/4/made
NB: Peer-to-Peer Invoice finance platforms are not regulated by the FCA.

What does the P2PFA do?
The Peer-to-Peer Finance Association (P2PFA) was founded in 2011 by Zopa, FundingCircle and RateSetter as a self-regulatory body for the sector to promote high standards of conduct and consumer protection. In December 2012 Christine Farnish CBE was appointed as the P2PFA independent chair and in February 2015 Tony Boorman was appointed Independent director.  The 3 main objectives of the Association are:

  • to seek to secure public policy, regulatory and fiscal conditions that enable the UK-based peer-to-peer finance sector to compete fairly and grow responsibly;
  • to ensure that Members demonstrate high standards of business conduct, to demonstrate leadership and to promote confidence in the sector; and
  • to raise awareness and understanding of the benefits and risks of peer-to-peer finance;

Members of the P2PFA are required to meet our robust rules and operating principles for the transparent, fair and orderly operation of P2P finance.

Video Links

2015 conference

Hosted at the Hilton metropole with Lendit Europe.  The P2PFA conference featured keynotes from Harriett Baldwin MP, Chris Woolard (FCA) and panels of investors and borrowers

Keynote: The Government’s Approach to P2P Lending

Keynote: Regulation of P2P Lending in the U.K.

A Discussion with Retail Investors

Small Business Borrower Success Stories

2014 conference

Hosted at PwC One Embarkment place, the P2PFA first conference featured a keynote by Sajid Javid the Financial Treasury Secretary and hosted panels on competition, regulation, the under the bonnet experience of P2P and lenders and borrowers.

P2PFA Intro

Consumer Panel Video

Panel of P2P Lenders

P2P Finance info links

Below are links to third party blogs and reports on P2P Finance:


P2P Money blog: http://www.p2pmoney.co.uk
P2P Banking.com: http://www.wiseclerk.com
Alt Finance News: http://www.altfinancenews.com
4th Way:http://www.4thway.co.uk
Lendit: http://www.lendit.co/blogs
Lendacademy: http://www.lendacademy.com


2016 (Feb) Nesta/ University Cambridge Pushing Boundaries report https://www.jbs.cam.ac.uk/faculty-research/centres/alternative-finance/publications/pushing-boundaries/#.VsXD-1In8-A
2015 (Feb) EBA opinion on loan-based crowdfunding https://www.eba.europa.eu/documents/10180/983359/EBA-Op-2015-03+(EBA+Opinion+on+lending+based+Crowdfunding).pdf
2015 (Feb) University of Cambridge/EY, European Alternate Finance Benchmarking Report – http://www.jbs.cam.ac.uk/index.php?id=6481#.VOs93ynZz8l
2014 (Jun) BIS/ICAEW, The Business Finance Guide – http://www.icaew.com/~/media/Files/Technical/Corporate-finance/Guidelines/the-business-finance-guide.pdf
2013 (Dec) NESTA, The Rise of Future Finance report – http://www.nesta.org.uk/publications/rise-future-finance
2013 (Nov) Open Data Institute, Show me the money: Opening up Big Data in Finance – http://smtm.labs.theodi.org/summary/
2013 (Apr) NESTA, Banking on Each Other report – http://www.nesta.org.uk/publications/banking-each-other-rise-peer-peer-lending-businesses
2013 Foundation Capital, A Trillion Dollar Market, By the People for the People – http://www.foundationcapital.com/downloads/FoundationCap_MarketplaceLendingWhitepaper.pdf