Consumers flock to peer-to-peer finance
A peer-to-peer finance website has reported a surge in the number of new users as the LIBOR fixing bank scandal unfolds.
Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in C:\inetpub\wwwroot\2025.financialreporter.co.uk\htdocs\templates\front-end\partials\article_blockquote.php on line 2
According to RateSetter.com CEO Rhydian Lewis, savers are choosing peer-to-peer to set their own interest rates.
Rhydian said:
"With peer-to-peer, you are the only one setting the rate. We have had thousands of people registering since the scandal. Peer-to-peer is challenging the banks’ once dominant position in the world of personal finance."
Peer-to-peer finance has already experienced massive growth over the last year, and recently broke through the £250m barrier in loans facilitated in the UK. Advances in technology and the introduction of RateSetter’s unique Provision Fund, which sidesteps the problem of defaults, has seen the number of RateSetter registered users swell to over 140,000.
He continues:
"The rate-setters at the Bank of England set the Base Rate. A handful of large banking institutions set LIBOR. Through peer-to-peer you now have thousands of normal people setting their own interest rates."
Breaking news
Direct to your inbox:
More
stories
you'll love:
This week's biggest stories:
This week's biggest stories:
Santander
Santander launches 98% LTV ‘My First Mortgage’
First-time Buyer
Improved affordability sparks 20% rise in first-time buyers: NationwideÂ
Inflation
Further rate cuts dampened as inflation rebounds to 3.4%
Mortgage Rates
Two Big Six lenders increase mortgage rates as swaps rise
Bank Of England
Bank of England holds interest rates at 3.75% in narrow 5-4 vote
Interest Rates
Looser Fed policy stance could slow further rate cuts, policymakers warn