The power of the people. July industry news
Last month we announced we will soon be welcoming Jeremy Bennett to the Funding Circle team as Global Chief Financial Officer. Former CEO of Nomura Holdings European division, Jeremy brings over three decades of experience within financial services. During the financial crisis, he was responsible for designing the £800 billion Asset Protection Scheme that provided insurance to all UK banks in 2008. Samir Desai says, “Jeremy has significant experience in building large scale financial services businesses and will play an integral role as we continue our evolution.” Press release on our blog.
10 years ago, peer-to-peer, or marketplace lending was launched in the UK, bringing the power of people to the financial sector, which in turn has helped many small businesses and the UK economy to grow. Since then, it’s really taken off, opening up new opportunities for investors and borrowers. From reasons to use marketplace lending, to the rates and risks involved, the Telegraph looks at the top platforms in the space and highlights what each of them can offer investors.
As part of the regulator’s ongoing work to ensure investors are properly protected when lending to small businesses through platforms like Funding Circle, the Financial Conduct Authority (FCA) is currently reviewing the existing regulations. The review was promised in 2014 to ensure the regulations kept up with innovation and developments in our dynamic sector and we will be submitting our response in September. For more information, have a look at our blog and a statement from the FCA.
Not only is it important for the FCA to understand the sector, but it’s essential for investors to familiarise themselves with the different forms of investment options available. Whether that’s investing in shares and funds or putting your money into property loans, there are many potential ways to earn attractive returns through peer-to-peer lending. But remember, these are investments, which means your capital is at risk.
Peer-to-peer property lenders promise to transform your fortunes – but is it worth putting your capital at risk?
According to figures from the P2PFA, the size of the peer-to-peer property sector has nearly doubled over the past year, making a huge difference to the number of new homes being built in the UK. Large house builders alone have been unable to keep up with rising demand, meaning that smaller builders play a crucial role in meeting this supply gap. At Funding Circle, investors are helping to alleviate the housing crisis by supporting these small developers, who have now built hundreds of homes across the country.
And finally, City AM discusses how marketplace lending is finally enticing the financial adviser community by offering them a powerful tool to help them diversify their client portfolios. Increasing track records at more established platforms are helping them to become more comfortable with this way of investing, allowing them to help more of their clients to earn attractive returns. Remember, by lending to businesses your capital is at risk.