JustUs has fully funded a £373,000 bridging loan within 60 seconds using the platform’s newly-launched auto-bid service.
5,418 JustUs micro-loans funded the loan – which is the first loan to be funded using the platform’s auto-bid functionality.
The auto-bid service ensures that lender capital is split automatically into smaller loan slices to enhance liquidity and provide investors with improved cash-out management options.
Lee Birkett (pictured), founder of JustUs, said that the popularity of this bridging loan was down to the glut of yield-seeking investors who are not getting the returns that they need from banks.
“People are very nervous about banks going into negative interest rates so there’s a real appetite for asset backed lending,” said Birkett. “And this particularly is a very straight forward low risk loan.
“If its sound security and low risk, people commit to them.”
Birkett added that as the banks move closer towards zero per cent rates, more people will start searching for inflation-beating savings and investment products. This will lead to an increase in automation within the P2P lending space.
“The more interest and capital we receive, the more automation will come into play,” he said.
“5,000 micro loans with the new technology is the way it will go – it will be a case of people queuing up to lend as opposed to us searching for money to lend.”