New research from Madiston LendLoanInvest (MLLI) reveals that, despite an increasing lack of accessibility, 75% of Brits still prefer to approach their high street bank for loans of £10,000 or less.
The survey of over 600 consumers serves as a reminder that in spite of significant inroads – there remains much work to be done in raising the profile of the peer-to-peer sector. On a more positive note, social lending between family and friends was the second most popular response to the survey – with 11% of the vote. 6% opted for credit cards and just 3% would turn to payday loans sites like Wonga.
“It’s surprising that high street banks are still such an automatic focus for consumer borrowing, despite their bad press over the past few years and notoriously restrictive lending criteria. If we were to resurvey the same people once they have approached their bank and ask about their success rates on obtaining a loan, we would likely see a different story.
“But it’s heartening though to see that borrowing from friends and family is more popular than credit cards or payday loans. However, this can be a risky business when money gets in the way of personal relationships. Using a P2P lending site, for instance, creates the anonymous social lending environment that people want, without the emotional baggage often associated with borrowing from friends and family.
“Consumers should consider the bigger picture and what works best for them and this is not necessarily a loan through the bank or a friend. P2P will still feel fairly new for many, but lenders and borrowers should be assured that it’s definitely an option that can help them make the most of their finances.“
The UK's oldest and best-loved conference for fintech and alternative finance insiders returns for its sixth iteration at etc.venues. We'll showcase the best of the UK's digital banking, online lending and digital wealth sectors through a series of uniquely in-depth discussions and presentations. Open Banking will be in full flight, just over a year on from its launch, and will be a central theme at the event.