First Quarter Peer-to-Peer Lending Volumes affirm continued strong trajectory of growth

Figures published by the Peer-to-Peer Finance Association (P2PFA) today, covering lending volumes for its nine member platforms for the first three months of 2017, underscore the continued development of the sector with the maintenance of impressive expansion in lending volumes and investor participation.

With cumulative levels of lending at almost £8.5 billion, P2PFA platforms facilitated the origination of in excess of £1 billion during the first three months of 2017 – with more than 180,000 investors participating at the end of the period as well as 420,095 borrowers.

Commenting on the data, 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’.

He continued: ‘at a time when macroeconomic uncertainty appears to be the prevailing narrative, more than £600 million has been lent to businesses through peer-to-peer platforms in the last three months, with almost thirty-seven thousand 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’.

He concluded: ‘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, 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’.

ENDS

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 nine member platforms comprise more than eighty per cent of the total UK peer-to-peer lending market. The member platforms are: Folk2Folk (which joined the P2PFA in February 2017), Funding Circle, Landbay, Lending Works, LendInvest, Market Invoice, RateSetter, Thin Cats and Zopa.
  3. The table below shows aggregate levels of peer-to-peer lending by P2PFA platforms since the second quarter of 2016.
Q2 2016Q3 2016Q4 2016Q1 2017
Cumulative lending£5,802,000,000£6,502,783,000£7,347,991,895£8,495,831,433
o/w lending to individuals£2,416,000,000£2,687,040,000£2,988,270,526£3,377,185,204
o/w lending to businesses£3,386,000,000£3,815,743,000£4,359,721,369£5,118,646,229
Base stock of loans (outstanding loan book)£2,609,000,000£2,812,988,000£3,093,692,787£3,537,152,530
o/w lending to individuals£1,178,000,000£1,263,565,000£1,367,767,161£1,518,532,233
o/w lending to businesses£1,431,000,000£1,549,423,000£1,725,925,626£2,018,620,297
New Lending£658,000,000£700,616,000£843,917,964£1,004,483,012
o/w lending to individuals£252,000,000£271,138,000£299,939,490£368,326,468
o/w lending to businesses£406,000,000£429,478,000£543,978,474£636,156,545
Capital repaid£485,000,000£494,975,000£561,088,544£624,693,566
o/w lending to individuals£170,000,000£185,082,000£195,737,268£232,831,830
o/w lending to businesses£315,000,000£309,893,000£365,351,277£391,861,736
Net Lending Flow£174,000,000£205,287,000£287,228,652£383,780,446
o/w lending to individuals£82,000,000£86,057,000£104,202,222£135,494,638
o/w lending to businesses£92,000,000£119,230,000£183,026,430£248,285,808
Number of current lenders150,376161,466169,747181,068
Number of current borrowers332,107363,201392,111420,095
o/w are individuals307,713335,803360,410383,232
o/w are businesses24,39427,39831,70136,863

4. The table below shows cumulative P2PFA platform level lending data since the second quarter of 2016:

 Q2 2016Q3 2016Q4 2016Q1 2017
Folk2Folk   £139,344,302
Funding Circle£1,341,573,000£1,524,427,000£1,830,397,245£2,158,457,107
Landbay£42,665,000£42,948,000£43,142,119£43,975,419
LendInvest£699,544,000£776,112,000£855,354,293£971,875,952
Lending Works£29,959,000£33,636,000£39,368,050£48,864,686
MarketInvoice£671,563,000£754,325,000£837,793,900£918,450,994
RateSetter£1,277,189,000£1,442,743,000£1,604,406,564£1,815,320,079
ThinCats£183,700,000£196,907,000£211,446,000£226,981,000
Zopa£1,555,972,000£1,731,685,000£1,926,083,724£2,172,561,894
Total£5,802,165,000£6,502,783,000£7,347,991,895£8,495,831,433

 

Contact

Robert Pettigrew (Director: Peer-to-Peer Finance Association):

e-mail – robertpettigrew@p2pfa.eu; telephone: 07771-547462

 

2017.04.26 – PressNotice – Q1 P2P lending volumes affirm continued strong trajectory of growth

2017.04.26 – Q1 2017 data

Folk2Folk joins the P2PFA

The Peer-to-Peer Finance Association (P2PFA), recognised as a beacon for good standards of business conduct in the alternative finance sector, has welcomed Folk2Folk into its membership, increasing the number of member platforms to nine.

Online lending platforms facilitating peer-to-peer finance who have a demonstrable commitment to transparency and good business practice are able to join the P2PFA, whose membership comprises around three-quarters of this thriving, vibrant and exciting new market in the United Kingdom. The P2PFA, whose members operate a diverse range of business models within this nascent sector, collectively lent almost £3 billion during 2016.

Folk2Folk is an alternative finance provider, based in the south-west, which operates a distinctive model offering simple and straightforward secured business loans for UK businesses looking for interest only finance. Folk2Folk is one of the only peer-to-peer lending companies with high street branches and is expanding these across the UK with its next branch opening in Yorkshire later this month. The platform has lent more than £130 million since its launch in 2013, and is fully authorised by the FCA.

Welcoming Folk2Folk into the P2PFA, the Association’s Chair, Christine Farnish, said: ‘I am delighted to welcome Folk2Folk as a member of the Peer-to-Peer Finance Association. Their unique model underscores the essence of community lending. Their success demonstrates the utility available through matching business borrowers to investors looking to secure a good return using property or land as a security. They have made a big contribution to the evolution and development of peer-to-peer lending, and their perspective will complement the work of the P2PFA in standing up for high levels of business practice, transparency and consumer focus which are the bedrock of our Association’.

Folk2Folk Chief Executive, Jane Dumeresque, added: ‘We are very happy to have joined the P2PFA as we believe it plays an important role in setting and maintaining high operating standards for our industry. Its role in providing a unified voice on the P2P industry is equally important as we evolve and grow. We believe that diversity of business models within the P2P sector is a benefit for both UK businesses and consumers. We look forward to working closely with the P2PFA and the other members in taking the P2P industry from being an alternative form of finance to the go-to form of finance for SMEs and consumers.’

ENDS

Notes to Editors

  1. 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 and effective regulatory regime. P2PFA members are required to meet robust standards for the transparent, fair and orderly operation of peer-to-peer lending, and member platforms comprise more than three-quarters of the total UK peer-to-peer lending market.
  2. Folk2Folk was launched as a peer-to-peer lender in 2013, and offers simple and straightforward secured business loans. Folk2Folk is one of the only P2P finance companies with high-street branches, and has lent more than £130 million. Folk2Folk is fully authorised by the FCA. Further information about Folk2Folk can be access at: www.folk2folk.com

Contact

Robert Pettigrew (Director: Peer-to-Peer Finance Association):

e-mail – robertpettigrew@p2pfa.eu; telephone: 07771-547462

2017.02.16 – PressNotice – Folk2Folk joins the P2PFA