Lending Review

By AltFi on 6th May 2015

 

Lending Review

Top 5 UK P2P Platforms by Market Share

Rank

Platform

Last 3 Month Market Share

Month to Date Volume

Cumulative Origination

1

RateSetter

18.96%

£39.2m

£604.6m

2

Funding Circle

17.92%

£33.m

£618.6m

3

Zopa

15.8%

£45.4

£834.8m

4

LendInvest

14.17%

£20.5m

£290.4m

5

Market Invoice

9.54%

£23.1m

£382.9m

Source: www.altfidata.com

Whilst Zopa, the oldest peer to peer platform in the UK, ranks third with respect to last 3 month market share, the platform triumphed in an industry record breaking month of volume originations in April. The record, had previously been held by RateSetter, with £43.5m in financing. Zopa is also targeting the honour of being the first UK platform to breakthrough the £1bn milestone although RateSetter and Funding Circle are hot on its heals.

According to the Liberum AltFi Volume Index, the UK Alternative Finance sector has originated  £3.45bn in financing since it began. 21% of this total has been transacted in 2015 alone.  

Sector

Last 12 Month Growth

P2P Business

178.73%

P2P Consumer

94.64%

Invoice Financing

117.51%

Source: www.altfidata.com

Growth continues to soar in the business lending sector of the peer to peer market. A number of UK government initiatives and legislative changes have provided support to the UK Alternative Finance industry. A prime example of this has been the British Business Bank, a UK government led enterprise, working with the industry to increase the supply of credit to SMEs.  

The Liberum AltFi Financial Disruptors Index tracks companies that have been leading a new wave of innovation in financial services. The 3 month return for the index currently stands at 9.8% whilst the striking 3Yr return continues to exceed 100%.

The Liberum AltFi Returns Index (LARI) is a time-weighted index representing a trailing 12 month return for investors in marketplace lending in the UK. The return for investors currently stands at 5.03%. For further background AltFi Data published an insightful analysis on how the LARI should be compared to other asset classes. The current LARI return is even more impressive in context of the 2Yr Term bank deposit rate, currently reading at 1.77%, although it must be noted that P2P investments bear greater risk.

AltFi Data recently announced that 2015 year to date origination volume in the UK for marketplace lending has surpassed the origination for the whole of 2013 with £653m of financing provided. According to AltFi Data predications, the industry is on course for an astounding £3bn of origination in 2015 alone. 

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