An industry going mainstream: November industry news
Peer-to-peer lending continued to make waves in the financial and business pages this month. Following a bumper month in October with the FCA publishing their consultation document for regulation, our launch into the US and various prominent journalists discussing the rates they have earned through peer-to-peer lending platforms, it seems that the industry is really gathering momentum. As 2013 draws to a close, it’s clear that the industry is becoming mainstream, as we continue to demonstrate that we’re just a better way of accessing finance.
Christine Farnish, chair of the Peer-to-Peer Finance Association (P2PFA), warned the regulator that grouping peer-to-peer lending and crowdfunding together for regulation would not be beneficial. She argues that they are two different industries, each with different approaches and risks, and the regulator needs to take this into account when drawing up the rules, which are due to be introduced in April of next year.
Sean Farrell at the Guardian covered the news that we have lent £17.6m of the £20m allocation of Government money. It’s certainly been hugely beneficial, boosting credibility with investors and borrowers, and we hope the Business Bank will continue to support businesses via Funding Circle in 2014.
As the industry does become more mainstream, so too will speculation about it’s future increase. Here’s a piece from the Financial Times which rightly cautions the industry against allowing demand to drive lending. Credit checking and underwriting processes must be sound for the industry to last, and prove it really is superior.
BBC Wales helped to spread the word to small businesses in Wales this month with radio, TV and online coverage. In the video clip, Vanguard Cleaning, a business who took a loan through us last year, talks about why they found the process of peer-to-peer lending much easier than going to a bank.
We finish with a bit of our own news, that this month we hired property specialist, Luke Jooste, who will head up our move into the property finance arena. You can read more about our plans on the blog.