Who Pays to Protect Our Investments? We Do.

police van with guards

Peer-to-peer ending is riskier than saving, and lending platforms are often asked how they protect their lenders against losses. Today, the Bank of England's blog looks at the hidden costs of compensation schemes, and argues that in many cases, attempts to protect investors' money have the opposite effect: they reward flawed business models, and take away one good reason for investors to .move their money elsewhere.