In what platform representatives believe to be a market first, RateSetter has revealed exactly where its lending capital comes from, and where it ends up. The data only applies to loans that are outstanding, which collectively amount to £448.9m, as at 30 September 2015.
Most striking about the lending data is the fact that a mere 3% (£12m) of the platform’s outstanding capital is institutional. This falls in line with expectation, given that the platform cut institutional money out of the marketplace between May and September this year. RateSetter announced in September that institutions were to be reintroduced into the marketplace, and that the platform might draw up to 30% of its lending capital from those institutions in the medium term.
On the borrower side, the platform continues to diversify. RateSetter published an update in December 2014 which revealed that 16.6% of its outstanding loans were to businesses (of which exactly half were secured property loans). In other words the platform had roughly £44m in outstanding business loans at that time. That 16.6% has now climbed to 40% of a much larger total, broken down into £137m of “commercial” loans and £43m of “property” loans. The diversification of RateSetter’s borrower offering stands in stark contrast to the approach of rival consumer lender Zopa, which according to AltFi Data has yet to deviate at all from its bread and butter – unsecured consumer loans.
The full breakdown of the RateSetter marketplace is available below. The platform expects to update the numbers quarterly.