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Peer2Peer Finance News | September 19, 2019

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Foreign firms eyeing P2P market entry

Foreign firms eyeing P2P market entry
Suzie Neuwirth

REGULATORY consultancy Bovill has reported a steady stream of interest from new entrants to the peer-to-peer lending market, particularly from overseas firms.

Frank Brown, managing consultant at Bovill, told Peer2Peer Finance News that while there had been an undeniable slowdown from previous years, he was still “definitely” seeing interest from new P2P firms seeking regulatory authorisation.

Brown attributed the slowdown to the fact that P2P is a more mature market, meaning there was “less of a gold rush” for new players.

Read more: New P2P entrants have a ‘second move advantage’

“There is definitely still interest in the sector, in particular from foreign firms,” he said.

“I think they’re recognising the fact that while there are questions around Brexit, the UK is still a good market with a strong regulatory framework to operate in.”

Read more: ‘Disruptive’ P2P lenders set to take a third of SME lending market

Brown said it should not come as a surprise that P2P remains an attractive sector, but noted that it is “incredibly important” for any new entrants to ascertain what their niche would be in order to gain a foothold in the market.

“I think the market is fluid in terms of investors’ options and I think it still remains unsaturated in terms of the number of investors,” he said.

“I don’t think P2P is on every investor’s radar yet.”

Read more: P2P industry yet to see wave of consolidation

This article featured in the September issue of Peer2Peer Finance News, now available to read online