Category: Featured

Peer-to-Peer Lending as an Asset Class

There are many reasons why Peer-to-Peer Lending is an attractive stand-alone asset class for investors, institutions and non-institutional investors alike. Peer-to-Peer Lending has historically offered higher returns than have been available elsewhere, stable yields and customer-friendly investment platforms. But where does it fit as part of a broader investment portfolio? How should investors think about… Read more »

Peer-to-Peer Lending Risks

  Risk vs. reward is a principal consideration for every investment decision. With peer-to-peer lending (P2P) platforms advertising rates ranging from 3% to 19% the reward can be easily visualised. The challenge, however, relates to assessing the level of risk acceptable to the reward. The nature of lending money to individuals and/or businesses creates unique… Read more »

Institutional Involvement in Peer-to-Peer Lending

  Institutional involvement in UK Peer-to-Peer lending remains low relative to the US, where institutions represent more than two thirds of the market. In 2015, institutions represented just 32% of consumer lending by total volume in the UK and just 25% and 26% of real estate and business lending respectively.   The Percentage of Actual… Read more »

A Guide to Loan Grading

John Mould, Chief Executive Officer of ThinCats, one of the pioneers of the direct SME lending industry, shares his thoughts on the ins and outs of loan grading. Credit scoring in the wider world is well documented, and loved and hated in equal measure.  But when it comes to accurate analysis in the alternative finance… Read more »

The Evolution of Peer-to-Peer Lending Regulation

The regulation of financial services is a delicate balancing act for the regulators and a topic which can quickly divide the opinions of its participants. On the one hand, the presence of increasingly tightening regulation can add credibility to a sector, encourage intermediary and institutional involvement, and create barriers to entry for rogue firms which… Read more »