THE UK’S three biggest peer-to-peer platforms reached record-breaking milestones in September, as investors and borrowers flock to the sector in search of a better deal.
Peer-to-Peer Finance News has learned that Zopa funded £67.8m in loans throughout the month, breaking its own previous record by more than £10m. Meanwhile, Funding Circle has announced that its funded £25m in loans in the 39th week of the year (26-30 September), making it the most successful week in the firm’s history. Just one week earlier, the company revealed that its lenders had helped raise more than £1.5bn for British businesses since its inception.
At the end of September RateSetter reached a milestone of its own, revealing that investors had earned £50m in interest since the inception of the site. Last month, we reported that RateSetter had doubled its new investor accounts since the Bank of England slashed its base rate in mid-August, and earlier this week RateSetter ended its £100 cash incentive for new investors amid an influx of new customers.
These results suggest that the UK’s P2P sector is on the rise, as investors reject the sub-inflation interest rates being offered by high-street banks and SMEs turn to alternative sources of funding amid Brexit uncertainty.
Zopa’s chief executive Jaidev Janardana told Peer-to-Peer Finance News via email that September and October are historically strong months for consumer lending.
“We landed a couple of important improvements in conversion through user experience design improvements and improved verification rather than credit changes,” he said. “This is driving higher volumes. We still remain watchful for any signs of consumer credit worsening post Brexit.
“The news is all positive as of now, we will remain watchful at least until Article 50 is triggered and we understand consumer and business reaction.”