Business lending through marketplaces surges. June’s industry news

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P2P business lending to eclipse consumer sector

Last month, business lending through marketplaces overtook lending to consumers in the UK for the first time. Marketplace lending to consumers began in 2005, whilst business lending began in 2010. However, the small business lending market is worth approximately £7 billion per month, and the options available to small businesses has historically been narrower than for consumers, so it was only a matter of time before business marketplace lending overtook consumer.

The lenders of the revolution look familiar

Big news in June as Goldman Sachs announced their intention to launch a marketplace lending platform at some point in the future. They plan to offer loans to both consumers and small businesses. A sign that the industry is maturing as larger institutions become more involved, particularly those who are historically used to dealing only with other institutions rather than consumers. In this Financial Times article, Morgan Stanley estimates that marketplace lending could become a $290 billion market within the next five years.

2015 Digital Masters Awards

The Digital Masters Awards recognise Europe’s top leadership talent across the digital space. Our very own UK COO, Pam Burton, won the ‘Google Award for Women in Digital’. Pam has helped make Funding Circle one of the fastest-growing technology companies in Europe and the marketplace is currently the 5th largest net lender to small businesses in the UK.

Peer-to-peer lending must mature to thrive

Back in May, Metro Bank and Zopa announced a new partnership where Metro Bank will lend to British people alongside existing investors through the Zopa platform. This type of relationship aids further expansion of marketplace lending and is a great example of how technology companies can work alongside traditional banks in the best interests of customers.

From couriers to car clubs: How the power of sharing could help you save money, cut costs and share the love

In this final piece, Laura Shannon describes the rise of ‘people power’; the rapidly expanding personal marketplace where people deal directly with other people to invest, save or anything from house sharing to car rentals. The sector is expected to be worth £230 billion a year within a decade. Within this falls marketplace lending, and the attractive rates you can earn if you diversify your individual investments across hundreds of loans. To learn more about what diversification could mean to you, check out our blog. And remember, when you lend, your capital is always at risk.

Kendra Bruckner