scare stories

Peer-to-Peer Good News Travels Slowly

Man driving a donkey cart

We consider it our job to report the news about crowdfunding and alternative finance, accurately and in plain language, so that our readers can make up their own minds about what they do with their own investments. 

The good news - that opportunities are plentiful for investors who are willing to take a more active role in managing their own money - is still not reaching enough of the right people. So we check the facts, and put them into context.

Goldilocks Is Hungry

blue bowl of porridge with spoon

The economy is too hot! The economy is too cold! The easiest story to write about crowdfunding and alternative finance  is the "something has changed, and it's all going wrong."  But Goldilocks is hungry. She's a growing girl, and she needs her porridge.

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?

Lord Turner's Mea Culpa

Lord Turner in white, speaking at a lectern

Peer-to-peer lending's fiercest critic has decided that alternative finance might be good for society after all. To those among us who thought he was also p2p's worst informed critic, this is something akin to the Vatican conceding that Galileo was right about the earth going around the sun.  The damage won't be repaired until his new message reaches the people who were frightened away by the old one.

MP Pressures Regulator Over Investor Protection

Chris Philp MP, (Conservative, Croydon South), asked the FCA to 'err on the side of caution" and provide stronger protection for investors in peer-to-peer lending. CityAM reported that the FCA had "warned p2p lenders they may face the same rules as banks" and the risk and regulatory consultancy Vedanvi reported that "Marketplace Lending could attract Basel III type Rules".

Chris Philps MP in Treasury Select Committee


Times 'Scandal' draws response from Nesta

We were pleased to see the letters page of this morning's Times includes a letter from Peter Baeck, a full-time crowdfunding reseacher with Nesta, pointing out the shortcomings of yesterday's 'Crowdfunding is a scandal waiting to happen' article.  

Nesta logo

Nesta (formerly NESTA, the National Endowment for Science, Technology and the Arts) has been responsible for some leading-edge research into crowdfunding, collaborating with the University of Cambridge and UC Berkeley, among others.  The opinions of its researchers are very well respected.

Times declares crowdfunding 'A Scandal'

Have the crowdfunders upset somebody? It seems we might have. The Times, traditionally England's newspaper of record, published an article headlined "Crowdfunding is a 'scandal waiting to happen'" and illustrated it with a large picture of Zopa founder Giles Andrews. 

screen shot of Bruce Davis' tweet

Zopa is the UK's oldest peer-to-peer lender, and this week its cumulative lending passed the one billion mark. 

Mail Moves To Redress Scaremonger Balance

Another Crowd is openly positive about crowdfunding, but our convictions are based on evidence. Our editorial policy is to introduce our readers to facts and ideas that will help them to think for themselves and make better investment decisions.

We appreciate well-informed scepticism, but we've seen rather too many articles we could summarise as "New Things Are  Dangerous: Be Afraid of Them."

a young man on a wall, balancing or kicking out

Balanced? Or taking aim at crowdfunding?

This week,  we were happy to see an article in This Is Money that we hope signals a change of heart in that journal's reporting of crowd investment.