In the document released by the FCA, which is open for public comment until 18 December 2015, the FCA acknowledges peer-to-peer lending and online investing platforms to play a relevant double role in the market: on the one side they can be an active lending company, helping consumers to access mortgages; on the other side, they can also facilitate mortgage lenders to raise the necessary mortgage funding to enter the market and expand. While in the former role, the FCA has acknowledged the important role digital investing plays in the real estate finance market; in the latter, instead, it is seeing this new financing method as a way to reduce an entry and expansion barrier for new players and incumbents, that may have difficulties finding the capital for mortgage financing.
The digital investing market in the UK has achieved such a relevant position in the financial landscape that it has become almost impossible not to consider it in many regulatory activities concerning finance and access to capital.
Call for Inputs on competition in the mortgage sector. Financial Conduct Authority. October 2015.
See the full Call for Input document here below
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.