PEER-TO-PEER lending platform RateSetter continues to pass lending milestones in Australia as its loanbook reached A$250m (£136.5m).
The firm, which is the only Australian P2P lender open to retail investors, also announced that it now has more than 10,000 registered users on its site.
RateSetter has doubled its investor base in the country within a year, which it says is due to customer dissatisfaction with Australian banks.
“The Royal Commission has shone a spotlight on our big banks and encouraged both borrowers and investors to look at alternatives,” Daniel Foggo, chief executive of RateSetter Australia, said.
“Our rapid growth is proof that people, looking to earn investment returns or borrow money, are realising P2P lending can help put more money in their pocket.”
Millennials continue to be the biggest group of investors on the platform with more than 6,000 now registered.
However, it is the middle-aged Australians who have been long-term customers of the banks that are now being attracted away by the nine per cent returns on offer on RateSetter’s five-year markets, the platform said.
This demographic’s average investment on the platform has now reached over A$37,000.
“A significant amount of growth in P2P is coming from mums an dads who are crying out for greater yield and low volatility,” Foggo said.
“P2P is ticking all the boxes for this group as well as the many thousands of investors who are looking for an alternative to their bank’s offer.”
“Our five-year market is proving extremely popular with all segments of our customer base but particularly mums and dads.
“Strong returns provide this group with a great alternative to bank offers including savings accounts and term deposits.”
UK-headquartered RateSetter expanded into Australia in 2012 and launched to the Australian public in 2014.