Peer2Peer Finance News
The UK's first peer-to-peer finance magazine for investors and the industry
  • Home
  • News
    • Personal Finance News
    • Industry News
    • SME News
    • Global News
  • Property
  • IFISA
    • IFISA Guide
  • Video
  • Open Banking
  • Cryptocurrency
  • Features
    • Joint Ventures and Promoted Content
  • Comment & Analysis
  • What is P2P?
  • Partners
  • Events
    • Past Events
  • P2P Power 50
    • Power 50 2020
    • Power 50 2019
    • Power 50 2018
    • Power 50 2017
  • Sign up to our e-newsletters
  • Magazine
  • Directory
  • Jobs
  • My Account
    • Manage Account
    • Change Password
    • Log In
    • Log Out
shutterstock_687505591
October 19 2017

P2P auto-lending is risking investor ethics and returns

Marc Shoffman Industry News, News auto-lending, Funding Circle, loans, manual lending, p2p, Robo.cash, Sergey Sedov

THE MOVE towards auto-lending among some peer-to-peer platforms may limit interest rates and be a stumbling block for investors worried about the type of businesses they lend to, a European automated P2P firm has said.

Despite being automated itself, Latvia-based Robo.cash has claimed lenders may be missing out on higher interest rates with a passive investment strategy.

It claims that as manual lending lets investors choose their own loans and take their own risks, they could effectively get higher rates than auto systems.

Read more: Autobid vs manual: Which is truly P2P?

As an example, Funding Circle recently moved from manual to auto-lending, now offering a conservation option at 4.8 per cent or a balanced approach at 7.5 per cent.

But previously, investors could have earned more manually.

“Judging by responses on forums, experienced investors working with the manual mode [receive] nine to 9.5 per cent per annum on average,” Sergey Sedov, chief executive of Robo.cash, said.

“So auto-bid will actually reduce their income.”

He also added that investors may prefer to be able to choose their loans if they only want to lend to certain companies or to support local businesses.

However, Sedov adds that auto-lending is still beneficial as it means the P2P platform takes on most of the due diligence.

“Companies that allocate funds to automated investments with a buyback guarantee are very attentive to the assessment of borrowers and transparent accounting,” Sedov added.

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

Kuflink signs sponsorship deal with Ebbsfleet United Football Club Cash ISA savers left £4bn short by inflation

Related Posts

CLOSED Out of business shop sign vector illustration

Industry News, News, Top 3, Uncategorized

SME lender warns many companies will not survive

London, UK - Downing street offices, entrance gate

Industry News, News, Top 3

Government responds to P2P fraud query

money UK

Industry News, News, Property, Top 3

The alternative lenders accredited for CBILS

Popular posts:

  • MP queries level of fraud in P2P lending
  • Aave launches higher risk, higher return option for…
  • Some firms set to pay more than maximum CBILS interest rate
  • Growth Street to return 100pc of investor funds
  • A year in the life of the 36H Group
  • Investors urged to look at ISA options ahead of…
Back To Top
  • Home
  • Contact
  • About
  • Team
  • Advertising
  • Subscribe
  • Privacy
  • T&Cs
  • Disclaimer

Follow Us on Social Media

© Peer2Peer Finance News 2020
• Additional design by