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Peer2Peer Finance News | August 21, 2019

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CrowdProperty to launch an auto-invest product in 2019

CrowdProperty to launch an auto-invest product in 2019
Marc Shoffman

CROWDPROPERTY is preparing to launch an auto-invest tool on its peer-to-peer property lending platform.

Mike Bristow (pictured), chief executive of CrowdProperty, said the functionality would be introduced at some point next year.

Read more: CrowdProperty loanbook hits £25m

“We are not committing to a delivery deadline but it is something we are looking at,” Bristow told Peer2Peer Finance News.

“We as a business have always liked the self-select model, but some investors come back to us and ask about auto invest, especially as our deals fund quickly.

“They want something that is a bit more hands off so they can diversify across all projects.”

Read more: How do you invest yours? The P2P platforms offering auto-bid or manual lending

Auto-investing products have become increasingly popular across the P2P industry, with the ‘big three’ platforms no longer offering manual lending at all.

This has been a topic of debate among industry stakeholders, with some arguing that it is moving away from the essence of P2P. However, others note that auto-invest tools are more appropriate for a wider range of consumers as the industry moves into the mainstream.

Separately, Bristow has been facing calls from investors on the P2P Independent Forum to introduce bid limits as projects get funded so quickly.

Read more: CrowdProperty promises more projects for investors

“There have been some larger bids on a recent project but it is nothing out of the ordinary,” he said.

“Limiting bids is on our consideration list but another way we are mitigating this is with a large pipeline of loans.

“We have increased our application rate and the pipeline will only grow, enabling people to diversify across multiple projects.”

He added that projects funding quickly is a “good problem to have” as it shows the product is popular, but said the current solution was to add more loans.

Read more: CrowdProperty funds £925,000 project in under 10 minutes