All is well in alternative finance
Jurgen Appelo, https://goo.gl/uQFHTJ
It’s been a heavy news morning at AltFi Towers…
Today we learn that the much vaunted mandatory bank referral scheme will – contrary to widespread qualms – get under way within the week, and will function entirely smoothly. There are in fact no tensions between the jostling “neutral finance platforms”, nor is there any angst between these portals and the lending platforms to which they will be referring businesses.
The Innovative Finance ISA, which launches next Wednesday, is set to encounter no complications whatsoever. All worthy peer-to-peer lenders will be authorised in time for the momentous occasion, including the “big three”. Reports suggest that multi-platform IFISA allocation will not be causing any headaches.
The interests of all marketplace lending investors – both retail and institutional – now exist in perfect equilibrium. In no instances, anywhere in the world, are hedge funds getting a better deal at the expense of their less-able counterparts.
The credit processes of the UK’s alternative lenders have been universally endorsed as both exhaustive and effective beyond measure. Technology has been widely hailed as the panacea to human error – most vocally by an anonymous regulator-turned-author.
Concerns about credit quality within the US marketplace lending space have been quashed. Investor appetite for the many asset-backed securities in circulation has rebounded, and all backhanded comparisons to the sub-prime mortgage crisis have been forgotten. The looming dark of the Madden vs. Midland case has receded. Share prices have recovered. US regulators have uniformly agreed never to stage any kind of “crackdown” on the online lending space.
The equity crowdfunding sector has been found to pose no threat whatsoever to retail investors. The companies that are turning to the sector for fundraising are, if anything, undervaluing themselves. No deal has yet been found wanting in terms of the investor protections offered. All financial promotions are in order.
Finally, transparency reigns supreme in China’s peer-to-peer lending space. Any reports of pink diamond purchases bear no relation whatsoever to client money mismanagement.
Don’t miss out on the next season of I’m A Celebrity… Get Me Out Of Here!, which will star AltFi’s very own David Stevenson, who will be sporting a brand new line of flowery shirts – inspired by the UK FinTech sector.