New Zealand’s first and largest peer-to-peer lender is to exit the market.
P2P personal loan lender Harmoney launched in 2014 and has built up a £1bn loanbook but announced this week that it will instead fund loans directly from April.
No new retail investor applications will be accepted from today (13 April) but the platform will retain its regulatory licence and lenders will be repaid as loans fall due.
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“Harmoney was established to create better opportunities for Kiwis – and then Australians,” David Stevens, chief executive of Harmoney, said.
“Our aim was always to bring much better choice for consumers, along with unprecedented transparency to the financial services industry.
“With our original P2P model in New Zealand, we disrupted the personal finance market and created better outcomes for borrowers and lenders.
“We believe we have even played a part in lowering the cost of borrowing.
“Closing the retail lending part of the platform is a decision we have come to over time.
“While a move we make reluctantly, it is necessary to free up resources so that Harmoney can continue to innovate, enhance value and create a better user experience for borrowers.”