9 biggest peer-to-peer lending stories for August
Here’s a round up of the most important peer-to-peer lending industry news for the month of August. Did we miss something? Let us know in the comments.
The Financial Times digs into data released by the Open Data Institute which says that the peer-to-peer lending industry in the UK will be worth £1bn by 2016. They also take the time to look back to see that the market has trebled in 3 years to £550m. Good article, although their use of the term ‘digital finance’ is questionable!
Continuing the theme of good times and growth in the peer-to-peer lending industry, The Daily Mail interviewed the Funding Circle co-founders on the week of our third birthday, asking questions about the business and the potential for the industry. They were kind enough to include our vital stats to date: Over 2,500 British companies have now received more than £135m of loans from in excess of 50,000 people in the UK through the ‘peer-to-peer’ lender.
The Huffington post joins in the growth stories this month by reporting on peer-to-peer lending’s march into the mainstream, calling it one of the most exciting developments of recent modern finance. We couldn’t agree more.
Funding Circle open its doors to sole traders as the lend-to-save firm looks to support ‘finance-starved’ businesses
More news about Funding Circle from the Daily Mail! This time they’re discussing how Funding Circle is dipping its toes into providing loans for Sole Traders, which was announced on our blog. The Scottish Herald reported on the first sole trader business to benefit from the trial, Howie’s Bistro, based in Dunkeld who raised £35,000 from 356 people in just six days.
The Scottish Express focusses on a report by the CEBR about savers that have turned to peer-to-peer lending and achieved a better return than an ISA. This is all good news but it’s worth remembering that peer-to-peer lending is a risk-based product, so you should do your research before diving in.
This article by The Telegraph sounds scary at first but as you read on, you’ll find it is more a warning to savers to be careful about which website they choose to lend on and suggest it may be safer to stick with the more established peer-to-peer lenders.
Possibly the most amazing description of peer-to-peer lending I have ever seen, Forbes dives deep into the industry comparing it’s attributes to the ‘too-big-to-fail banks’. Very interesting reading indeed.
Super snooper, Dan Hyde from the Telegraph, has discovered that HMRC is in discussions with the industry to talk about including peer-to-peer lending into ISAs. This of course is a move we welcome and have spoken numerous times about the need for tax breaks for peer-to-peer investors.
The Economist explores the tech startups in London, San Francisco and New York that are taking on the world of finance, in what they describe as an explosion. It seems the rebellion is turning into an industry and it’s great to see innovation solving problems for consumers that bigger organisations won’t. We’d like to point out that we don’t drink lattes near our laptops, this is an accident waiting to happen, and we only get free fruit on Tuesdays. Although hearing that other startups get free food, we might raise this with management.