P2P industry lends £715m in Q1

The volume of lending and capital re-paid as well as the number of current lenders and borrowers have all increased quarter-on-quarter for more than a year.

Volumes of lending have almost doubled compared with what they were last year. Peer-to-Peer Finance Association members have now lent £5.1 billion since 2010 – with £715m of new lending during the last three months alone.

Christine Farnish CBE, Chair of the Peer-to-Peer Finance Association, commented:

"The growth in peer-to-peer finance is impressive, and demonstrates the considerable momentum now behind the sector. Peer-to-peer lending is now a mainstream and established part of the UK’s financial landscape.

"With peer-to-peer loans now eligible for tax-free investments through the personal savings allowance and with the new innovative finance ISAs regime, we expect further significant growth in the future. This is great news for investors and borrowers alike."

Kevin Caley, Founder and Chairman of ThinCats, said:

“With £715 million of new loans approved in the last three months alone, it’s clear that the peer-to-peer sector has truly made its mark and is giving traditional lenders a real run for their money. The pace of growth has been consistent, with volumes almost doubling year on year, and this is just the start of it. We expect this growth to snowball,  as more platforms receive FCA approval for the innovative finance ISA.
 
“The industry has gone from fintech fantasy to established industry in only a decade, so inevitably there will be challenges along the way. However the leading peer-to-peer platforms, members of the P2PFA, have all built robust business models and set high standards to deal with this. So I have no doubt that the peer-to-peer sector will soon sit alongside other mainstream asset classes, and continue to deliver great results for investors and borrowers alike.”