MOST Rebuildingsociety investors are passing the peer-to-peer lender’s appropriateness tests within two attempts.
A platform spokesperson has revealed the team was initially worried that its test could deter customers, as it is longer than those presented by other P2P platforms. However, only one per cent have failed to complete it so far.
“Having always had a focus on lender education and awareness building we applied the same approach to the introduction of and format of the tests,” Kylie- Jo Greeff, compliance manager for Rebuildingsociety, said.
“Whilst many of our lenders have been with us since the start and are well versed with the platform and its intricacies, we took the opportunity to use the tests as a chance to educate and guide new lenders about Rebuildingsociety, our processes and our products rather than simply subject them to an A-level type stress exam.”
The appropriateness test was introduced following the introduction of new Financial Conduct Authority regulations in December 2019.
Both new and existing lenders have to take the Rebuildingsociety test.
“We’re glad to see that 99 per cent of our lenders have successfully passed the test in under two attempts,” Greeff added.
“Being slightly longer than many of the other platform’s tests we were concerned we might experience a high drop-off rate but have been pleased to see that only roughly one per cent of those that attempted the test haven’t yet completed it.
“Having tracked the success rates of each question we’ve been able to highlight areas and topics that are misunderstood or haven’t been made clear enough, allowing us to improve our communication in these areas.
“Results from the lender classification has been helpful to us a platform as we’re now more easily able to tailor communication and future product innovations for each lender group, which will over all improve the service and experience each investor receives.
“We will be reviewing our appropriateness tests on a bi-annual basis and in the meantime using the data and insights we’ve collected to improve lender understanding of P2P lending and the associated risks.”
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