By John Reynolds on Monday 16 March 2020
RateSetter sent a message to customers last week detailing the impact of coronavirus.
The "global shock" of the coronavirus could have led to RateSetter experiencing a spike in demand for money from investors and borrowers.
On Friday last week, the peer-to peer lender sent a message to its customers detailing the impact of coronavirus on global markets and possibly leading to Ratesetter being unable to process customers wanting money as quickly as before.
The spike was caused by borrowers looking for loans or investors wanting to access money, RateSetter said.
RateSetter said the process had slowed down from within a day to take more than a week.
The message said: "This week has been an extraordinary week for investments around the world, with reaction to coronavirus developments leading to record falls in stock markets and aggressive interest rate cuts."
"Given the context of the wider investments environment, it is understandable that we have received a spike in requests to release invested money. This has meant that we have not been able to process requests as quickly as usual."
"We have taken action to prioritise these requests by materially reducing lending while taking into account ongoing obligations on the borrower side."
Rhydian Lewis, Ratesetter CEO, said: “This is a global shock, stock markets are processing the news and trying to find a new level, resulting in a volatility not seen for 40 years. Interest rates have been cut which will result in savings rates falling further.”
“We are continuing to see inflows, especially as ISA season approaches, but we are not isolated from the wider investment environment and in response to a spike in requests from investors this week we have provided guidance that it will temporarily take longer than usual to process investment release requests.”
“Our focus is on keeping investor access open and flowing, while managing our obligations on the borrower side, and getting back to normal as quickly as possible.”