15 November, 2017

Orca P2P Investment Product Coming Soon

Orca P2P Investment Product Coming Soon

At Orca, our primary focus has always been to provide fact-based research and analysis to support investors in their due diligence of the UK P2P market. But, while scrutinising the market and talking to our users we have become aware of certain market inefficiencies. For example, the risks the platforms themselves pose (we call this Platform Risk) including insolvency, fraud and cyber-crime, are not given enough attention. A well-diversified portfolio, at a platform level, is a clear step to mitigating these risks – P2P lending platform risk. We’ve also found that a large number of P2P investors are investing in only one or two platforms and those that do hold a diversified portfolio are spending significant amounts of time managing their portfolio. Ultimately, it’s difficult and time consuming to build a fully-diversified P2P portfolio. So, we believe it’s time for UK P2P lending to evolve.

Orca is taking the P2P industry to the next level by developing the UK’s first intelligent P2P investment platform with automatic portfolio construction, the ability to diversify across multiple platforms, lending sub-sectors and borrowers, and portfolio monitoring provided by industry experts.

The ‘Orca Investment’ product

With our “one click” portfolio construction and automatic diversification, you can diversify your investment across multiple platforms and view your portfolio from one place: Orca. Our platform automatically seeks out the maximum diversification across:

  • P2P lending platforms
  • Lending sub-sectors
  • Borrowers

Some key features of the product include:

  • Automatic “one click” portfolio construction
  • Portfolios comprised of major UK P2P platforms
  • Diversification across platforms, sectors, borrowers
  • Exposure to over 50% market
  • Growth product with capital and interest re-invested
  • Portfolio monitoring by industry experts
  • Market research and analysis freely available

Orca fee: 0.65% is applicable

NB: Orca will be made available to a limited number of investors initially at launch, in December. Join our ‘Early Investors Wait List’ now to have your investment processed first.

Invest across multiple P2P platforms. Once click. No hassle.

The Orca portfolios are comprised of major platforms, ensuring investors are diversified across over 50% of the UK market. We have curated portfolios to provide exposure to consumer lending, business lending, and property lending. This strategy means you will be diversified at a platform, sector, and borrower level.

Portfolio in practice

The level of diversification you can achieve is dependent on your investment amount. If you were to invest £10,000, for example, you would receive a portfolio comprised of 7 major P2P platforms, providing exposure to approximately 80% of the available market. Investment can be made in denominations of £500, with portfolio allocation automatically altered reflective of amount deposited/topped up.

Why are we doing this? As an industry specialist, we have become acutely aware of problems that exist in the market, affecting investors unnecessarily, and that can be resolved.

Problems Orca address

P2P lending risks

Although we are advocates of P2P as an asset class we are fully aware of the risks involved in P2P lending. There two principal risks when investing:

  1. A large number of borrowers fail to repay their loans. This may be a result of poor credit decisions by the P2P provider or a result of negative economic conditions.
  2. The P2P platform invested across suffers insolvency, fraud, or a cyber-attack which will likely cause turbulence to an investor’s portfolio, and potentially loss of money.

How Orca resolves

With Orca’s diversified P2P portfolios, investors increase their diversification across borrowers, by lending across multiple P2P platforms. With respect to the platform risks, investors spread their exposure across major platforms within one portfolio, mitigating such risks by not putting all their eggs in one basket (P2P platform).

P2P portfolio creation

Building a P2P portfolio is time consuming as investors have to invest directly across individual platforms. This is an administrative burden, both during the account opening process and while monitoring a portfolio.

How Orca resolves

When it comes to the burden of building your own portfolio, our team of industry specialists provide the diversification in your portfolio. You don’t have to pick individual loans or research multiple platforms before making a decision. Furthermore, we monitor your portfolio, reporting on performance which can be viewed within your own secure Orca dashboard. We also collect communication from the individual platforms, keeping you abreast of any significant information.

Other potential benefits of Orca

As illustrated above, our passive product positions diversification at the forefront of the product’s design. We believe it is of paramount importance when considering investing in this asset class. Other product benefits include:

  • Transparency: investors can view their asset allocation and performance from their own Orca investor dashboard.
  • Grow money: investors gain from the power of compound interest as capital and interest is re-invested.
  • Quality: we only work with quality lenders after in-depth due diligence is conducted.

Investor considerations

Understandably, peer to peer lending is not for everyone, and we’re aware that our new product may not be appropriate for an investor’s current situation. So, here are a few points to digest before making a decision whether to register for the ‘Early Investor Wait List’:

  • Peer to peer lending is not covered by the Financial Services Compensation Scheme, meaning your capital is at risk and could be lost entirely should a borrower default.
  • Orca portfolios are P2P model portfolios. At launch, you will not be able to actively select P2P platforms or loans. We’ve analysed the market and performed in-depth due diligence enabling you to achieve diversification with ease.
  • Orca will never handle your money. Funds are either held in a segregated client bank account in your name or with the P2P platforms.
  • Orca will monitor your portfolio on a daily basis, but we will not actively manage the portfolio. If we felt something significant would negatively impact your investment we would contact you with a proposed portfolio change.  
  • Orca will report on the performance of your portfolio, displaying performance metrics on your own personal Orca dashboard. You will not be required to login to multiple P2P platforms to monitor your portfolio.

Our goal is to diversify your exposure, while retaining the attractive returns offered by peer to peer lending. The unique Orca product alleviates the difficult and time-consuming process of creating and monitoring your own portfolio. It’s time for a product that helps novice investors access the market with confidence, and helps experienced investors curate a portfolio without the hassle.

For those who know Orca, we thank you for your support and for those who don’t, welcome.


The Orca Team

Disclaimer: Peer-to-peer lending is not covered by the Financial Services Compensation Scheme (FSCS). Your capital is at risk if a borrower defaults on their loan commitment.