The UK has one of the most established and promising peer-to-peer lending markets in the whole world. Its incredible growth, which finds no comparison in the rest of Europe, seems almost unstoppable. The UK P2P Finance Association (P2PFA), which includes among its members some of the leading lending marketplaces in the country, has released the data collected among members for Q3 2015, revealing that in all likelihood the £2 billion loans threshold will be hit by the end of 2015.
The P2PFA, that includes among its members a large platform like Funding Circle, which has recently announced its expansion in other European countries, has also unveiled new transparency standards that will be applied by its members, starting from 2016. Such standards and operating principles aim at guaranteeing a better level of transparency, risk management and governance among its members. With this regard, the Chairman of the association stated “by the New Year, all our members will publish their full loan books, show bad debt losses in a comparable way, and commit to ensuring that retail investors get a fair deal compared with institutions”.
The fact that the UK P2P industry is adopting best practices and transparency standards is a clear signal that the sector has matured at a point that it can understand how fundamental is to ensure that future growth is sustainable and fairness and best practices are in place.
The outstanding growth of the British sector is also the result of effective policies that the government has adopted towards it, for example the ISAs which will enter into effect next April.
As the London City Minister, Harriett Baldwin, has publicly stated at Lendit Europe last week, the British Government has included a “Fintech strategy” in its agenda for the past couple of years, because it is one of its objectives to make London the world Capital of Fintech. And until now, it seems London and the UK have all the requirements to be the best candidate.
Finberg, R. (2015). Q3 Data Reveals UK P2P Lending on Track to Surpass £2 Billion for 2015. Finance Magnates.
Martens, K. (2015). P2PFA shares latest data and standards update at LendIt Europe. BanklessTimes.
P2PFA unveils new transparency standards. P2PFA.info (2015)
Photo credit to: barnyz
About the author - Irene Tordera
Born and raised in Milan, Italy, Irene is an International Business graduate, with a strong interest for innovative ideas that can simplify our lives.
During her studies, she co-founded an online community for sportspeople and worked in marketing positions at Ogilvy & Mather Advertising and at the European Business Angel Network, in Brussels. She is a passionate blogger about crowdfunding and the startup ecosystem and she works also for the European Crowdfunding Network.