Peer-to-peer lending grows by £700m in Q3

The figures show strong and sustained growth in the sector, with more than £700 million of new lending transacted between July and September, as well as a continued increase in the number of borrowers and lenders.

P2PFA Chair, Christine Farnish, said: "Data from the third quarter of 2016 highlight the strength of peer-to-peer lending in the United Kingdom, and underscore the value that this form of alternative finance is providing to the economy for borrowers – both business and consumer – as well as lenders. Peer-to-peer lending continues to deliver a competitive alternative to traditional lending.

"As Lord Turner said last week: at an accelerating pace, direct non-bank lending has extended to segments previously almost entirely dominated by banks. The direct lending industry will grow and play a useful role in our overall credit supply system."