CROWD2FUND is rolling out a white label solution for institutions wishing to expand into peer-to-peer lending.
The platform, which is one of only four P2P lenders to offer the Innovative Finance ISA, is already in talks with potential partners.
Institutions – such as investment firms – will be able to use Crowd2Fund’s “Powered by” feature to operate as a P2P platform under their own brand. Crowd2Fund says it has already seen “significant demand” from institutions looking to leverage their customer base, although it declined to name which ones.
“Mid-tier investment houses are very engaged with P2P, but they’re finance people, not tech people,” chief executive Chris Hancock (pictured) told Peer-to-Peer Finance News.
“We’ve built a software solution that will allow a larger institution to use our technology as a white label product.”
Rather than spending millions of pounds on building their own P2P platform, institutions will be able to use Crowd2Fund’s software in return for a set-up fee and a charge per transaction. By bringing institutions on board, Hancock said it would build Crowd2Fund’s credibility and give them access to a wider customer base.
“We are aiming to secure an institutional partner in both Singapore and the US by the end of the year to support our expansion plans into those regions,” he said.
Unlike many of its larger rivals, Crowd2Fund does not allow institutions to lend money through its platform, so this will be a new way to get institutional investors involved with the company.