2015, a revolutionary year for marketplace lending. December industry news.
What an amazing way to end the year! In just over 5 years, your lending has helped over 12,000 small business in the UK access finance through the Funding Circle marketplace. More than £500 million was lent in 2015 alone. Thank you for all your continued support, we couldn’t have reached this major milestone without you! Further coverage can be found in the Financial Times, Business Insider and Altfi. Check out our blog for more information, and you can listen to co-founder Andrew Mullinger discussing the implications of rapid growth in a recent podcast published in the Financial Times.
From banking to investment, financial technology has revolutionised the way investors and businesses can access financial services. Warren Mead, head of alternative finance at KPMG, expects that investment in fintech will grow to more than $30 billion over the coming year, up from $20 billion in 2015. As the disruption of the fintech sector continues, traditional lenders have started to work with these innovative companies, providing more exposure to marketplace lending for investors. Read more on this topic in the Financial Times, CityAM, and watch Sam Hodges, Funding Circle’s US Managing Director, on Bloomberg discussing the future of marketplace lending.
The UK property technology sector has seen significant growth over the past 18 months, with marketplace lending platforms playing an important role. The emergence of platforms has enabled access to property loans as an investment class, helping to build thousands of much needed homes across the UK.
As the industry continues to grow, different types of investors such as hedge funds, pension funds and the Government are now lending alongside individuals. At Funding Circle, we believe that a diverse range of investors, big and small, will make the marketplace more sustainable in the future. At a recent investor evening, Funding Circle co-founder James Meekings talked about what this means for you. Watch the full video on our blog.
By the end of 2015, UK marketplace lending platforms facilitated around £3 billion of lending, and by the end of this year lending volumes are on target to double. In just 10 years, marketplace lending platforms have developed immensely and form a significant part of the wider financial landscape. With such rapid growth in the sector, fair regulation becomes increasingly important. Britain is currently the only place in the world with a dedicated regulatory regime for the UK marketplace industry, and platforms plan to become fully regulated by the FCA in 2016. Read the CityAm piece here.
And finally, to wrap up the year, it was a proud moment for Funding Circle as CEO and co-founder Samir Desai was given a CBE in the New Year’s Honours list for his contribution to the financial services sector. He’s quoted, “This honour is testament to the hard work of the team who have helped originate £1.25 billion of loans from thousands of investors to small businesses in the last five years, creating over 50,000 new jobs globally.”