RateSetter Australia has hit the AUD$200m mark in lending a little over three years removed from launching down under. The platform, which lends to both businesses and individuals, has doubled its lending volumes over the past six months.
The milestone represents the latest in a string of noteworthy achievements for UK fintech lenders’ overseas operations. Last week we learnt that Funding Circle’s US arm had topped the $1bn mark in loans to businesses.
RateSetter claims to be the only Australian peer-to-peer firm to offer investments to retail investors. Interestingly, 56 per cent of its investors withdrew money from bank savings accounts in order to divert them into the platform, while a further 17 per cent reallocated money from bank term deposits. The greatest proportion of the platform’s investors are millennials, at 58 per cent, although they invest the least amount of money on average of any age group at $9,454. Retirees (aged 65 and over) by contrast invest an average of $66,118.
“The peer-to-peer lending industry is reaping the benefits of Australians’ frustrations with the banks, with record numbers of investors and borrowers seeking out the better value alternative we offer,” said RateSetter Australia CEO Daniel Foggo (pictured). “By turning to peer-to-peer lenders and cutting out the costly middleman, borrowers and lenders are getting a much better deal.”
RateSetter Australia has enjoyed a busy year, claiming to have formed the first partnership between a P2P firm and the Australian government in May, when it clinched a $20m commitment from the Clean Energy Finance Corporation to support the launch of a green loan marketplace. The firm then closed a $10.5m fundraise in September.