P2PFA platform-facilitated lending exceeds £8 billion

The P2PFA has published data showing that in the period ending in the fourth quarter of 2017, cumulative lending transacted through P2PFA member platforms exceeded £8 billion.

Commenting on the data, Robert Pettigrew, Director of the P2PFA, said: ‘the final three months of 2017 saw considerable growth in levels of new lending transacted through platforms – with more than a quarter of a million consumers and businesses currently have a peer-to-peer loan – and £836 million in new borrowing. At a time when the approach of more traditional lenders, particularly to small businesses, comes under increasing scrutiny, the peer-to-peer lending sector has a positive story to tell which continues to drive marked levels of growth in borrower and lending volumes’.

Reflecting on 2017, he continued: ‘The narrative underpinning 2017 for most P2PFA member platforms was one of sustained momentum consolidating collectively this most significant part of the alternative finance landscape as a lender of choice for consumers and businesses, as well as offering an investment product to attract the interest of a significant number of investors. It is noteworthy that, even though P2PFA members have facilitated significant growth in lending volumes over the course of the last decade through their platforms, default rates remain low, which underscores that their emphasis on credit quality is unrelenting’.

ENDS

Notes to Editors

  1. 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.
  2. 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, Market Invoice, ThinCats and Zopa.
  3. The table below shows aggregate levels of peer-to-peer lending by P2PFA platforms during 2017.
Q1 2017Q2 2017Q3 2017Q4 2017
Cumulative lending£5,708,635,402£6,391,925,730£7,168,727,657£8,033,329,880
o/w lending to businesses£3,487,208,822£3,924,226,666£4,440,151,180£5,039,000,838
o/w lending to individuals£2,221,462,580£2,467,699,064£2,728,576,477£2,994,329,042
Base stock of loans (outstanding loan book)£2,497,408,800£2,745,490,796£2,958,326,435£3,258,708,518
o/w lending to businesses£1,470,605,094£1,630,765,546£1,754,510,098£1,971,666,313
o/w lending to individuals£1,026,803,706£1,114,725,250£1,204,816,337£1,287,042,205
New Lending£703,047,838£666,096,755£733,270,490£836,982,950
o/w lending to businesses£447,074,032£419,818,940£472,393,077£571,229,385
o/w lending to individuals£255,974,806£246,277,815£260,877,413£265,752,565
Capital repaid£401,358,998£411,834,014£508,891,428£551,968,213
o/w lending to businesses£253,832,226£253,477,742£337,105,103£369,441,516
o/w lending to individuals£147,526,772£158,356,272£171,786,325£182,526,697
Net Lending Flow£305,679,840£254,262,739£228,055,356£277,677,738
o/w lending to businesses£197,231,806£166,341,195£138,964,268£194,451,870
o/w lending to individuals£108,448,034£87,921,544£89,091,088£83,225,868
Number of current lenders128,000140,098134,658138,829
Number of current borrowers214,631231,189246,813263,110
o/w are businesses34,56639,04343,42548,834
o/w are individuals180,065192,146203,388214,276

4. The table below shows cumulative P2PFA platform level lending data during 2017:

 

Q1 2017Q2 2017Q3 2017Q3 2017
Crowdstacker£35,209,322
Folk2Folk£139,344,302£176,419,805£191,918,805
Funding Circle£1,830,397,245£2,158,457,107£2,747,357,362£3,093,910,983
Landbay£43,142,119£43,975,419£59,561,822£82,627,314
Lending Works£39,368,050£48,864,686£71,699,386£83,183,353
MarketInvoice£837,793,900£918,450,994£1,201,857,191£1,366,252,414
ThinCats£211,446,000£226,981,000£254,955,000£269,082,000
Zopa£1,926,038,724£2,172,561,894£2,656,877,091£2,911,145,689
Total£5,708,635,402£6,391,925,730£7,168,727,657£8,033,329,880

 

Contact

Robert Pettigrew (Director: Peer-to-Peer Finance Association):

e-mail – robertpettigrew@p2pfa.eu; telephone: 07771-547462

2018.02.26 – PressNotice – P2PFA platform-facilitated lending exceeds £8 billion

2018.01.26 – Q4 2017 quarterly data

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