London, 13 December 2013
Peer-to-peer (P2P) lending has enabled £758 million of funds to be accessed by UK businesses and consumers over the last two years, according a new report released today.
The Rise of Future Finance: The UK Alternative Finance Benchmarking Report, published today by Nesta, University of Cambridge and University of California, Berkeley, has identified that P2P business and consumer lending is the largest form of alternate finance with a transaction volume of £480 million in 2013.
The report states that:
- The P2P lending sector has “significantly outperformed the interest rates available to investors with a relatively low risk profile”;
- The sector is more than doubling in size each year; and
- The UK is the “undisputable world leader” of this alternative financing model.
Commenting on the report, Christine Farnish, Chair of the Peer-to-Peer Finance Association (P2PFA) said: “This report demonstrates how significant the alternative finance market is to the UK economy, and peer-to-peer lending in particular.
“Our members have lent almost half a billion pounds in 2013 as consumers and SMEs alike look for alternative sources of finance.
“With regulation of P2P by the FCA starting in April next year, something we strongly support, and rapidly-growing consumer interest in the sector, we expect the industry to continue its exponential growth rate through 2014.”
The full report can be accessed from http://www.nesta.org.uk/publications/rise-future-finance- results-uk-alternative-finance-benchmarking-survey