The peer-to-peer lending landscape has changed considerably over the past few years. Between acquisitions, wind-downs and expansions, a number of big names have exited the space, and others have grown substantially to replace them.
However, in terms of sheer lending volumes, there is no touching the big two – Funding Circle and Zopa. Between them, they have lent almost £14bn to UK-based borrowers, dwarfing the competition. Yet other platforms are catching up. There are now four alternative lending platforms which can boast a loan book value of more than £1bn, and Peer2Peer Finance News has counted at least seven platforms which have passed £100m in lending volumes.
These figures demonstrate the maturity and popularity of P2P lending in the UK, and hint at the growth that can be achieved as the economy starts to recover from a year and a half of lockdown measures.
Peer2Peer Finance News can now reveal the five largest P2P lending platforms by loanbook volumes…
- Funding Circle
Total loanbook value since inception: £8.3bn
Since the company was founded in 2010, Funding Circle has grown to become one of the largest P2P lending platforms in the world, with £11.5bn originated globally. £8.3bn of that amount has been loaned to UK borrowers alone, making it far and away the largest UK-based platform in terms of lending volumes.
Total loanbook value since inception: £5.66bn
The world’s first P2P lending platform is 16 years old this year, and it is still innovating. Last year, it launched Zopa Bank, and more recently it has been raising funds to support a public listing. Meanwhile, Zopa’s P2P division has lent more than £5.66bn to UK borrowers.
Total loanbook value since inception: £3bn
While LendInvest is not an P2P lender, it still allows retail investors to fund property loans via listed bonds. Earlier this year, the alternative property lender listed on London’s Aim, with a valuation of £255.6m. Its funds under management have risen to more than £3bn, from £375m in 2017.
- Assetz Capital
Total loanbook value since inception: £1.4bn
In March 2020, Assetz Capital passed its £1bn milestone, just seven years after the company was founded. During the Covid-19 pandemic, Assetz Capital was one of the few alternative lenders selected to offer the coronavirus business interrupton loan scheme (CBILS), and the follow-on recovery loan scheme (RLS). Including the money loaned via CBILS, the platform has now funded more than £1.4bn in loans.
Total loanbook value since inception: £460m
Like LendInvest, Folk2Folk does not consider itself to be pure P2P, although it does pitch itself as a ‘human 2 human’ lender. Since the company won its P2P license in 2014, it has gone on to lend almost £0.5bn to property developers, farmers, and businesses across the UK, with a focus on the South West region of England.