By Daniel Lanyon on 10th October 2019
P2P lender RateSetter has reduced its annual loss and its boss says it is moving towards profitability.
RateSetter’s saw its losses fall to £4.2m for the year to March 2019, from £27.5m in the previous financial year.
The firm says that its loans under management to March 2019 is £891m with revenue of £33m.
P2P/ marketplace lending has had a tough year with critics rounding on the business model of platforms and depressed share price for Funding Circle since its IPO 12 months ago.
“Our model has always been differentiated from other peer-to-peer lenders because we have focussed on a low risk and liquid product for investors. On the borrower side, we compete in traditional and deep markets where we do not need to take undue risk to build a sizeable business.”
“We believe this makes RateSetter the sustainable challenger to the banking model of deposit- backed lending. Some fintechs may have raced off quicker than us, but we think the tortoise will overtake the hare.”
It says the number of active investors rose 26 per cent whilst its Innovative Finance ISA which, is three years old has attracted strong demand with over £270m invested.