Review sites may be misleading, say P2P platforms
PEER-TO-PEER lenders are warning that investors should not rely too heavily on review sites.
In recent years several different review sites have emerged, such as Trustpilot, Feefo and Google Reviews, making it hard for consumers to compare platforms in one place.
Ashlee Dutton, marketing manager at ArchOver, which has four out of five stars on Trustpilot, thinks it is better to partner with just one.
“It could become confusing if a site was showing too many review site partners,” Dutton said.
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“It could be seen as a negative if you use too many, as it may seem as though you’re trying to make up for a low score or bad rating on one service. If you use a trusted review site that lenders and investors are familiar with then there isn’t a need for so many.
“You don’t want to spam your lenders and investors with requests for a review.”
Most other P2P lenders can be found on Trustpilot.
A spokesman for Abundance, which has four out of five stars, said while ratings are important, users should also check how many reviews have actually been left.
“It is important for these review sites to have significant critical mass – both themselves to attract visitors, but also in terms of the number of reviews they have of a business; just a few reviews could be very misleading,” a spokesperson said.
But not all P2P platforms can be found on the same review websites, making it harder to compare.
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For example, Landbay does not have a profile on Trustpilot but can be found on Feefo with a rating of five out of five stars.
Julian Cork, chief operating officer for Landbay, said the sites are a useful resource for investors, but warned that they are not akin to professional financial advice.
“Reviews should be just one factor in an investors’ decision when selecting the right investment for their risk/return profile,” he said.