peer to peer lending

P2P Will Destroy the World! Or Save It? Or...

Cover of Altus Consulting report, with meteor and dinosaurs

A new analysis of peer-to-peer lending (P2P) as an asset class contains some colourful language, and attracts a witty response from one of P2P's best informed critics. It's also worth taking seriously.

Altus Consulting's new white paper boasts a truly pulp fiction cover. Dinosaurs lumber across a rocky wasteland under a sulphurous sky, out of which three blazing meteorites are hurtling toward the hapless giant lizards. Such marketing! We immediately felt an urge to download the report and read it in our bedrooms, while listening to extremely loud guitar music.

Lord Turner Plays Trick Or Treat With P2P

Christopher Lee as DraculaPer-to-peer lenders and borrowrs could be forgiven for sending their children out in Lord Turner costumes tonight . The good lord, who presided as regulator over the Crisis of 2008, trashed peer-to-peer lenders in the spring, then shared some more kinder and more positive opinions at the Lendit conference.

Now he has changed his tune again and is warning that increasing complexity in peer-to-peer lending could make things very difficult for regulators. What are we to make of all this?

UK Funding A New Era Of Small Businesses

Yesterday, Funding Circle raised £100 million ($150 million) in equity capital, the biggest amount raised by a startup for three years, and a landmark in UK peer-to-peer lending.  But CEO Samir Desai was keener to talk about the revolution in business finance and the unique advantages UK investors gain from the approach taken by the Financial Conduct Authority (FCA).



Video courtesy of Bloomberg Television.

General Awareness of P2P Lending Grows - But The Details Are Devilish

crowd crowdfunding

Awareness of peer-to-peer (P2P) lending is increasing, but people don't fully understand how it works, and aren't aware they could lose money, or have to pay tax on their earnings, according to a survey funded by the Yorkshire Building Society.

There is some feeling in the crowdfunding industry that the survey is a piece of scaremongering. After all, banks and building societies currently offer savings products with yields at or close to historic lows. The survey focuses on awareness of security - an area where deposit-type savings accounts benefit from the Financial Services Compensation Scheme. Let's examine the survey.



Yorkshire Building Society logo

Yorkshire Building Society comissioned research through YouGov in January to test the public's awareness of peer to peer lending. Out of a random sample of 1,541 UK adults, 42 per cent said YES, they had heard of this new financial service. But when tested on how much they knew about it, the poll revealed that relatively few fully understood the detail of how P2P lending actually works.

The Great Savings Robbery

In 2014, gross interest rates on savings are half what they were fifty years ago - 3.50 per cent in 1964, compared to only 1.75 per cent in 2014. But the problem is inflation. In April, Consumer Price (CPI) inflation was up 1.8 per cent year-on-year, and the Retail Price Index (RPI) was higher, at 2.5 per cent.