A third type of ISA. July industry news
July saw the Chancellor deliver his Summer Budget, where he confirmed a third ISA, which will allow lending through marketplaces such as Funding Circle to be held within an ISA from the 6th April 2016. This is tremendous news for investors who will soon be able to lend up to £15,000 per year tax free. Our co-founder, James Meekings said “inclusion of peer-to-peer lending within ISAs is a pivotal moment for our industry”. You can read more in the Telegraph, Mirror, Mail, Times, Independent and on our blog.
Another busy month at Funding Circle as you lent a record £47.5 million to businesses across the UK! Q2 was also a record quarter for marketplace lending as a whole with over £500 million lent to consumers and businesses across a three month period for the first time in history. The phenomenal growth is proof that marketplace lending continues to become a mainstream way to borrow and lend. Check out this article in the Guardian if you’re still not convinced.
In more big news, we are delighted to welcome Jerome Le Luel and Manpreet Dhot to the Funding Circle team. Jerome, former Head of Risk Analytics at Barclays Group, is joining the company as Global Chief Risk Officer. And Manpreet, previously Chief Credit Officer at American Express within the Latin American market, has joined as Chief Risk Officer in the USA. Full details can be found in the press release.
We were also pleased to announce our new partnership with Sage, one of the world’s leading software providers for small businesses. Our partnership means Sage will refer small businesses to the marketplace for fast and efficient access to finance. We believe that by working in partnership, we can help more small businesses grow, and bring you even more lending opportunities. This tie-up follows our agreement with Santander last year. More details can be found in the Daily Mail, CNBC and on our blog.
And finally, in this interesting article about the powerful growth of the financial technology industry, Morgan Stanley predicts that marketplace lending could grow from 1% of consumer and small business lending in America, to 10% by 2020. With tech companies popping up everywhere and smartphone apps providing 24/7 services to millions of people, it’s no wonder the fintech revolution is taking off. The internet is driving the biggest upheaval to the financial services industry in its history, and we hope that by lending to businesses through Funding Circle, you feel part of this!