The P2PFA has published its latest quarterly lending data.
Commenting on the data, Robert Pettigrew, Director of the P2PFA, said: ‘comparing the performance of P2PFA platforms in the second quarter in 2017 with the same period in 2016 underscores the progress which peer-to-peer lending has continued to make: levels of new lending in the same quarter last year were £657,939,000, whereas this year our platforms have originated £818,919,129 in the last three months – of which £478,203,444 has supported small business and real estate projects. The number of lenders and borrowers continues to rise, with more than 35,000 more investors participating than during the same period last year.
Notes to Editors
1. Peer-to-peer lending – regulated by the Financial Conduct Authority since April 2014 – involves direct matching of funds between investors and borrowers through an on-line platform. Investors range from retail consumers to institutional investors as well as the government. Borrowers range from consumers, small businesses, property developers and buy-to-let. Peer-to-peer lending platforms match investors and borrowers directly for a fraction of the cost of traditional financial services entities, providing benefits to customers on both sides of the transaction.
2. The Peer-to-Peer Finance Association (P2PFA) was established in 2011 as a representative and self-regulatory body for debt-based peer-to-peer lending. The P2PFA seeks to inform and educate, promote high standards of business conduct, and work with policy-makers and regulators to ensure an effective regulatory regime. P2PFA members are required to meet robust standards for the transparent, fair and orderly operation of peer-to-peer lending, and the eight member platforms comprise more than eighty per cent of the total UK peer-to-peer lending market. The member platforms are: Folk2Folk, Funding Circle, Landbay, Lending Works, Market Invoice, RateSetter, Thin Cats and Zopa.
3. Following LendInvest’s decision that it has no short or medium-term plans to add an Article 36(H) regulated platform to its investment offering, communication of the platform’s intention to withdraw from the P2PFA with immediate effect was received.
4. The table below shows aggregate levels of peer-to-peer lending by P2PFA platforms since the third quarter of 2016.
|Q3 2016||Q4 2016||Q1 2017||Q2 2017|
|o/w lending to individuals||£2,687,040,000||£2,988,270,526||£3,377,185,204||£3,717,964,933|
|o/w lending to businesses||£3,039,631,301||£3,504,367,076||£4,133,770,277||£4,629,103,324|
|Base stock of loans (outstanding loan book)||£2,543,587,665||£2,811,346,853||£3,212,125,967||£3,442,417,872|
|o/w lending to individuals||£1,263,565,000||£1,367,767,161||£1,518,532,233||£1,615,021,464|
|o/w lending to businesses||£1,280,022,726||£1,443,579,692||£1,693,593,734||£1,827,396,407|
|o/w lending to individuals||£271,138,000||£299,939,490||£368,326,468||£340,715,685|
|o/w lending to businesses||£352,911,168||£464,735,775||£519,634,886||£478,203,444|
|o/w lending to individuals||£185,082,000||£195,737,268||£232,831,830||£244,188,311|
|o/w lending to businesses||£260,980,593||£299,054,186||£318,020,706||£338,258,169|
|Net Lending Flow||£177,631,930||£274,283,044||£341,099,817||£236,472,647|
|o/w lending to individuals||£86,057,000||£104,202,222||£135,494,638||£96,527,375|
|o/w lending to businesses||£91,574,887||£170,080,822||£205,605,179||£139,945,272|
|Number of current lenders||155,041||162,271||172,402||185,652|
|Number of current borrowers||361,922||390,757||418,625||435,267|
|o/w are individuals||335,803||360,410||383,232||395,296|
|o/w are businesses||26,119||30,347||35,393||39,971|
- The table below shows cumulative P2PFA platform level lending data since the second quarter of 2016:
|Q3 2016||Q4 2016||Q1 2017||Q2 2017|
Robert Pettigrew (Director: Peer-to-Peer Finance Association):
e-mail – firstname.lastname@example.org; telephone: 07771-547462