2020 has certainly been a year to remember (or forget) with Covid-19. Much has happened in the peer-to-peer lending space, with platforms responding to the crisis to support the economic recovery, while also innovating and adapting to new regulations.
Here’s Peer2PeerFinance News’ round-up, month-by-month.
The year started with the Peer-to-Peer Finance Association being disbanded and replaced by new trade body 36H Group.
Elsewhere, ETHLend began winding down its loanbook, weeks after Aave launched its flash loans.
This was the month that Covid panic hit the UK, and the P2P sector responded quickly. Octopus Choice stopped all transactions, Growth Street initiated a liquidity event and Assetz Capital paused withdrawals from its access account. Funding Circle tightened its lending and Zopa offered borrowers payment breaks.
Meanwhile, Shojin Partners’s results showed the platform reduced its losses significantly in the year ending 30 June 2019.
Funding Circle became the first P2P platform to become accredited to offer the coronavirus business interruption loan scheme (CBILS) and the government introduced the future fund for innovative companies.
The City regulator temporarily banned the marketing of mini-bonds to retail investors and both Ablrate and ArchOver released their full-year results.
Also this month, Propifi suspended its P2P platform during the pandemic.
This month both LendingCrowd and Folk2Folk were accredited to offer CBILS.
Elsewhere, P2P lenders were blocked from accessing the Bank of England’s term funding scheme, Lending Works was acquired by alternative investment manager Intriva Capital and Growth Street announced it was winding down.
RateSetter was acquired by Metro Bank, LandlordInvest said it was looking to make a profit this year and Innovate Finance chief Charlotte Crosswell praised the response from P2P lenders to the crisis.
Funding Circle’s results showed its total income grew while operating losses widened.
Metro Bank completed its acquisition of RateSetter, JustUs resumed retail lending and Crowd2Fund reopened its platform for loan listings.
This month, creditors backed proposals by Wellesley to enter a company voluntary arrangement and Waterfall replaced Pollen Street Capital as manager of the Pollen Street Secured Lending investment trust.
Elsewhere, the Treasury extended the deadlines for its loan schemes again, LendingCrowd paused new retail sign-ups and deposits and Assetz Capital said the platform will remove its lender fee from February.