AROUND THE WORLD
Despite trepidations radiating from Brexit the P2P market in the UK remains strong. On Friday of last week the independent ratings agency 4thWay reported on the health of 12 peer-to-peer players in the property field. According to CrowdFund Insider, “Combined, these platforms have lent £1.6 billion since 2013. Returns have ranged from 2.25% to 12.7% and lender losses have been placed at zero at 11 out of the 12 platforms.” This news underscores the resilience of this asset class.
On Wednesday, P2P-Banking published the updated loan originations of several key players in the P2P market in October. The chart shows an increase for Bondora over the same period last year, of 78%.
On Friday, The Irish Times reported on the initial efforts to introduce the growing world of P2P lending to Ireland. The outlet explains, “father-and-son team Padraig and Padraig Rushe, is aiming to bring the first personal peer-to-peer lending platform to Ireland.” The move evidences the underserved demand for quick and affordable loans in under banked regions.
Business Insider on Thursday reported on the state of “FinTech” amid aggressive competition. The author highlighted the ability of technology to accelerate growth in the market place explaining, “P2P lending marketplaces are growing much faster than traditional lenders.” In the coming years only the best are expected to survive. Those who emerge will be the low cost, high satisfaction providers.
National Mortgage News reported on the growing interest of larger, brick-and-mortar firms like Wells Fargo, Sun Trust and Goldman Sachs to gain a piece of marketplace lending. While these institutions have ample size, and thus cash, they are at a disadvantage because “by choosing to build their own loan platforms, rather than partnering with an online lender, these banks got to the market late.”
Our Estonian audience can read an article from a business news site Äripäev about how Bondora’s payroll fund almost doubled in 2015. The increase was the result of building a strong development team within Bondora, as cited by Bondora’s CEO Pärtel Tomberg.