The company has published its first global economic impact report, authored by Oxford Economics.
A new report has, for the first time, measured the global economic impact of leading peer-to-peer platform Funding Circle.
Oxford Economics, who produced the report, find that Funding Circle has now contributed £4 billion (in Gross Value Added) to the global economy, unlocking 75,000 jobs. Every £1 lent through the platform equates to £2 contributed to GDP across Funding Circle’s four active markets (the UK, US, the Netherlands and Germany). £1.7bn was lent across these markets in 2017 alone.
Funding Circle’s biggest impact has been on its home turf in the UK, where the platform has lent around £3.5bn cumulatively. In 2017, the firm contributed £2.4bn to the UK economy and generated £730m in annual tax receipts for HM Treasury, according to the report. 45,000 UK jobs have been powered by its loans during that period.
A significant factor in the platform’s success so far has been its speedy decision-making. 92 per cent of businesses that have borrowed through the platform believe the process was faster than traditional routes to funding.
In tandem to publishing today’s report, the company has announced significant expansion plans. It intends to hire 400 people in 2018, bringing its worldwide headcount to 1,200. 200 of those planned hires will be based in the UK.
Commenting on the report’s findings, John Glen, Economic Secretary to the Treasury said: “The way people and businesses access borrowing is evolving, and with this new players like Funding Circle are making great contributions to our world-class financial services industry. The success of peer-to-peer lending has brought about real benefits, not only for the businesses of Britain, but as this report shows, our economy at large too.”
Funding Circle co-founder and CEO Samir Desai (pictured) said that small businesses are underserved in every market in which the platform operates, and that the economic impact of the platform's borrowers is 'hugely rewarding to see'.
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.