The latest quarterly data underscores mainstreaming of peer-to-peer lending.
Levels of new lending have increased significantly during the first quarter of 2016, continuing the trend of the last few years.
The volume of lending and capital re-paid as well as the number of current lenders and borrowers have all increased quarter-on-quarter for more than a year, demonstrating the continued mainstreaming of peer-to-peer lending platforms in the provision of finance. Volumes of lending have almost doubled compared with what they were last year. Peer-to-Peer Finance Association members have now lent £5.1 billion since 2010 – with £715m of new lending during the last three months alone.
Commenting on the data, Christine Farnish CBE, Chair of the Peer-to-Peer Finance Association observed: ‘the growth in peer-to-peer finance is impressive, and demonstrates the considerable momentum now behind the sector. Peer-to-Peer lending is now a mainstream and established part of the UK’s financial landscape’.
She continued: ‘With peer-to-peer loans now eligible for tax-free investments through the personal savings allowance and with the new innovative finance ISAs regime, we expect further significant growth in the future. This is great news for investors and borrowers alike’.
Notes to Editors
- The Peer-to-Peer Finance Association was established in 2011 and represents platforms providing around ninety per cent of the United Kingdom’s peer-to-peer lending market. Peer-to-peer lending is by far the largest type of innovative finance, and the sector is doubling in size every year. Current members of the Association include: Funding Circle, Landbay, Lending Works, Lendinvest, MarketInvoice, RateSetter, ThinCats, and Zopa. Collectively, Peer-to-Peer Finance Association members serve more than ninety per cent of the UK market.
- Peer-to-peer platforms are regulated by the Financial Conduct Authority*. The Association maintains Rules and Operating Principles that must be followed by member organisations to protect the interests of all their consumer and small business customers. *Apart from invoice finance