Quarterly data covering the period up to the end of March 2018, published today by the Peer-to-Peer Finance Association (P2PFA), reveals that cumulative lending by P2PFA members is fast-approaching £9 billion, with almost 150,000 investors currently providing loans facilitated through P2PFA platforms to more than fifty-thousand businesses and 221,000 consumers.
Commenting on the data, Robert Pettigrew, Director of the P2PFA, said: ‘Levels of lending made possible through P2PFA platforms has continued to grow during the first quarter of 2018 – and this has been particularly pronounced for business loans where more than £660 million in new lending has been facilitated in the first three months of 2018. Indeed, since the third quarter of 2017, there has been a thirty-five per cent increase – some £75 million – in net lending to businesses by P2PFA platforms, which contrasts with data published by the Bank of England for banks, and highlights the important role played by the peer-to-peer lending sector in ensuring that businesses have access to the finance needed to fuel our economy’.
He continued: ‘These impressive figures demonstrate, yet again, that the peer-to-peer lending sector continues to secure its position as an attractive proposition for investors and borrowers and consolidates its status as a sustainable component in the wider financial services landscape’.
Notes to Editors
- Peer-to-peer lending – regulated by the Financial Conduct Authority since April 2014 – involves direct matching of funds between investors and borrowers through an on-line platform. Investors range from retail consumers to institutional investors as well as the government. Borrowers range from consumers, small businesses, property developers and buy-to-let. Peer-to-peer lending platforms match investors and borrowers directly for a fraction of the cost of traditional financial services entities, providing benefits to customers on both sides of the transaction.
- The Peer-to-Peer Finance Association (P2PFA) was established in 2011 as a representative and self-regulatory body for debt-based peer-to-peer lending. The P2PFA seeks to inform and educate, promote high standards of business conduct, and work with policy-makers and regulators to ensure an effective regulatory regime. P2PFA members are required to meet robust standards for the transparent, fair and orderly operation of peer-to-peer lending. The member platforms are: Crowdstacker, Folk2Folk, Funding Circle, Landbay, Lending Works, MarketInvoice, ThinCats and Zopa.
- The table below shows aggregate levels of peer-to-peer lending by P2PFA platforms during the four quarters leading to Q1 2018.
|Q2 2017||Q3 2017||Q4 2017||Q1 2018|
|o/w lending to businesses||£3,924,226,666||£4,440,151,180||£5,039,000,838||£5,699,559,956|
|o/w lending to individuals||£2,467,699,064||£2,728,576,477||£2,994,329,042||£3,263,400,820|
|Base stock of loans (outstanding loan book)||£2,745,490,796||£2,958,326,435||£3,258,708,518||£3,530,634,586|
|o/w lending to businesses||£1,630,765,546||£1,754,510,098||£1,971,666,313||£2,170,368,751|
|o/w lending to individuals||£1,114,725,250||£1,204,816,337||£1,287,042,205||£1,360,265,835|
|o/w lending to businesses||£419,818,940||£472,393,077||£571,229,385||£660,076,506|
|o/w lending to individuals||£246,277,815||£260,877,413||£265,752,565||£269,061,218|
|o/w lending to businesses||£253,477,742||£337,105,103||£369,441,516||£446,087,365|
|o/w lending to individuals||£158,356,272||£171,786,325||£182,526,697||£195,837,587|
|Net Lending Flow||£254,262,739||£228,055,356||£277,677,738||£287,533,338|
|o/w lending to businesses||£166,341,195||£138,964,268||£194,451,870||£214,309,707|
|o/w lending to individuals||£87,921,544||£89,091,088||£83,225,868||£73,223,631|
|Number of current lenders||140,098||134,658||138,829||148,222|
|Number of current borrowers||231,189||246,813||263,110||276,278|
|o/w are businesses||39,043||43,425||48,834||54,485|
|o/w are individuals||192,146||203,388||214,276||221,793|
4. The table below shows cumulative P2PFA platform level lending data during the four quarters to Q1 2018:
|Q2 2017||Q3 2017||Q4 2017||Q1 2018|
Robert Pettigrew (Director: Peer-to-Peer Finance Association):
e-mail – firstname.lastname@example.org; telephone: 07771-547462