By Sam Griffiths on Wednesday 2 July 2014
One particularly lively sub-sector of the alternative finance world has stolen the limelight in this month’s statistical breakdown.
All of the top five platforms in terms of month-on-month growth rate hail from the peer-to-business lending space: Saving Stream, Wellesley & Co., Assetz Capital, UK Bond Network and Folk2Folk. This is hardly surprising given the variety of innovative new entrants within sector. Funding Circle – the incumbent and leader in this area – sits above 10 platforms of scale enough to boast cumulative volumes of at least a 0.1% of the overall Liberum AltFi Index*.
With such a plethora of serious operators, could we soon see the peer-to-business sector (£556,178,261) rival the consumer lending space (£830,707,265) in terms of scale? The latter sector exhibited a growth rate of 5.50% throughout June, compared to a 10.40% figure for the business lending field. Of course, new faces within the consumer lending arena will balance out this disparity in growth. QuidCycle and Lending Works are prime candidates to enter the Index over the next few months.
There were three particularly strong performances in June worth highlighting:
The Index has seen two new platforms enter the fray this month. As mentioned above, the innovative UK Bond Network has now been included in the peer-to-business lending market. In the equity space, CrowdBnk has now entered into the Index – having channeled £2,103,360 in equity capital to young businesses so far. The equity space has a number of platforms seemingly poised for inclusion within the Index.
* A cumulative volume of 0.1% of the overall Liberum AltFi Index is the minimum requirement for a platform's inclusion within the Index.