Lending Review

By Sukhwinder Shoker on Friday 18 September 2015

Alternative Lending

To 5 UK Platforms by Market Share

Rank Platform Last 3 Month Market Share Month to Date Volume Cumulative Origination
1 Zopa 22.93% £33m £1055.9m
2 Funding Circle 21.38% £28.8m £819.5m
3 RateSetter 18.08% £25.6m £786.5
4 Market Invoice 11.76% £17.2m £502.8m
5 LendInvest 10.36% £m £390.4m

Source: www.altfidata.com

Growth in online financing activity at the top 4 UK marketplace lending platforms has accelerated in September after a slowdown in volume originations in August. To place the current month to date volumes in context, loan originations in September 2014 for Zopa, Funding Circle and RateSetter were £28.7m, £32.8m and £23m respectively. A year on, and over half way through September, the Liberum AltFi Volume Index UK is on track for a record month of origination.

Furthermore, RateSetter recently announced the onboarding of institutional funding as part of a wider strategy to diversify sources of investor capital. The platform intends to fund roughly a 3% proportion of its lending using institutional capital. We should expect to see a slight uptick in the platform’s lending growth. MarketInvoice has successfully surpassed half a billion in funding for SMEs, with over 34% of this amount being transacted in 2015 alone, highlighting the significant opportunity in invoice financing for businesses and investors.

In other news, there has been a positive change in the Liberum AltFi Returns Index, which stood at 5.4% at the end of August. 

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