By Ryan Weeks on 24th April 2018
The peer-to-peer lender has passed AUS$250m in loans.
RateSetter’s Australian arm continues to cement a strong market position down under. The platform has now passed AUS$250m in loans, with more than 10,000 investors registered.
RateSetter Australia attributes much of its growth to what it calls a consumer ‘rebellion’ against the big banks, brought about by the Royal Commission.
“The Royal Commission has shone a spotlight on our Big Banks and encouraged both borrowers and investors to look at alternatives,” said Daniel Foggo, CEO of RateSetter Australia. “Our rapid growth is proof that people, looking to earn investment returns or borrow money, are realising P2P lending can help put more money in their pocket.”
The company also points to Gen X investors as having keyed its growth. The amount invested by members of this group has increased by 14 per cent over the last 12 months, with an average investment among them of almost $40,000. 47 per cent of Gen X lenders are targeting the platform’s five-year market, investing at an average gross interest rate of 9 per cent over the past three months.
Furthermore, it transpires that 61 per cent of investors withdrew money from high interest savings accounts, in addition to 28 per cent from term deposits, in order to invest via RateSetter.
Millennials are also a significant part of the mix. Over 6,000 of the platform’s 10,000 investors are millennials, but they tend to be focused on shorter-term markets, which offer lower interest rates.
“A significant amount of growth in P2P is coming from Mums and Dads who are crying out for greater yield and low volatility,” said Foggo. “P2P is ticking all the boxes for this group as well as the many thousands of investors who are looking for an alternative to their bank’s offer.”