IRISH peer-to-peer lending platform GRID Finance has ruled out the UK as part of its current expansion plans.
The business lender announced it had received €3m (£2.7m) of finance yesterday that will help to fund expansion into new markets, but chief executive Derek Butler says the UK market is already very competitive.
“The UK is really successful when it comes to the development of next generation financial services,” Butler said.
“That has led to a competitive environment.
“There is also a secondary factor of Brexit uncertainty, it is a much smaller factor in our decision, but is still a factor.”
He said he was focusing on scaling the business in Ireland first and competing with the country’s two main banks, Allied Irish Bank and Bank of Ireland.
“There isn’t a compelling investment proposition for us to compete with a developed market like the UK,” Butler added.
Instead, he said GRID Finance would eventually look to expand into southern and eastern Europe.
The platform offers loans and leasing for businesses, with average rates of nine per cent.