Early stage consumer facing platform Lending Works has now become a member of the UK peer-to-peer lending sector’s most exclusive club.
Lending Works becomes the 9th member of the Peer-to-Peer Finance Association. The P2PFA was established back in 2011 by Zopa, RateSetter and Funding Circle in order to lobby for sector-specific regulation. The trade body now promotes high standards of conduct within the industry, ensures that peer-to-peer customers are treated fairly, and conveys clear messages to policy makers (like the FCA) on behalf of its member platforms.
Lending Works is one of only a few new entrants within the consumer lending space. Unlike the world of peer-to-business lending – in which a broad range of platforms operate – there is a huge fall-off after the two main platforms (Zopa and RateSetter) in terms of scale. In fact, no other consumer lending outfit has yet hit a cumulative lending total large enough to be factored into the Liberum AltFi Index. Eligible platforms must have individually accounted for at least 1% of the total value of the Index. The Index is currently worth £2.17bn, and Lending Works have lent just shy of £2m. Coupling entry into the Liberum AltFi Index with P2PFA membership sends a powerful message: Lending Works is on the rise.
The platform has been able to distinguish itself within the consumer lending space through the pioneering Lending Works Shield – which protects users from default risk, fraud and cybercrime. The Shield combines a sizeable provision fund, the insurance of lender money, and superior technology in order to maximize investor security.
"Lending Works is proud to be part of the Peer-to-Peer Finance Association. We believe that working together with other P2PFA members we can educate the market about our growing sector, increasing its awareness and making peer-to-peer lending the first choice for consumers.
Furthermore, we believe creating and upholding high standards of conduct across the sector is vital for consumer protection and credibility for our industry. We are delighted to be able to contribute to this movement."
We’ll be staging an in-depth interview with Nick in a week or two. Watch this space.