Speaking on Wake Up to Money, Turner was asked about the current state of the British and global economy, threat of UK exit from the European Union and impact of P2P lending. He declared: The losses which will emerge from peer-to-peer lending over the next five to ten years will make the bankers look like lending geniuses. P2P involves the pairing of individual borrowers and lenders through online platforms. Whether it is through direct lending offerings such as Funding Circle, or MarketInvoice, which allows lenders to buy up invoices from businesses in need of finance, the industry has experienced considerable growth in recent years. Figures from the Peer to Peer Finance Association (P2PFA) found that, in 2015, its members generated nearly 2.2m in loans. This represents lender growth of 22 per cent and borrower growth of 96 per cent. P2PFA members included Funding Circle, Landbay, Lending Works, LendInvest, MarketInvoice, RateSetter, ThinCats and Zopa. The single largest lender was found to be Zopa, with a cumulative total of 1.2bn.
Read more on P2P lending:
- Why Zopa’s CEO believes fintech trailblazers aren’t there to “kill the banks”
- Funding Circle acquires Zencap to expand P2P lending to SMEs across Europe
- The UK’s small business owners expect alternative finance demand to surge
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