The most important stories and data from the world of P2P lending and alternative finance.
Phillip Hammond’s first Budget as Chancellor has not gone down well with, well, anyone. In particular, the fintech and alternative finance industry has hit back with several industry figures taking the opportunity to speak out against Hammond’s lack of tacit support for the burgeoning industry.
Nonetheless, one piece of new policy that will see dividend taxes become less favourable could potentially benefit the Innovative Finance ISA. More good news comes this week in the form of a new report by Deloitte which suggests, the online lending is not in a state of existential crisis – as some have suggested – but is in fact in rude health.
The money keeps flowing for platforms. US-based Kabbage has priced its second ever securitisation at $525m. One of the largest UK players Funding Circle has secured another $100m of new investment from the US based investment firm CIM. While, you know I am sure, Funding Circle is London based, the new cash will be used in its US operation for lending to smaller American firms.
Competition among online lenders is heating up, with – er…the internet…- a key battleground for marketing according to new data from AdGooroo. Paid-for advertising on personal loan keywords increased by 101 per cent between 2014 and 2016, despite the fact that the number of advertisers nearly halved during that same period.
Back in the UK, the disruption of lending by banks seems to have reached fever pitch. New data suggest small business lending by the big banks fell off a cliff from December to January. Good news for the likes of Funding Circle.