The UK's largest peer-to-peer lender, Zopa, has now lent over £500 million of consumer savings to UK borrowers since launching in 2005. The pioneering lending company has shown significant levels of growth by lending over £200 million (40% of total) in the last 12 months.
Proposals by the UK's Chancellor of the Exchequer to explore legislation that will force banks to refer small businesses that they turn down for loans to crowdfunding and P2P platforms have been cheered by the alternative lending industry.
Software developer ThoughtWorks has helped peer-to-peer lending platform Zopa to build for the future and gain a better understanding of its customers.
Figures released by the UK Peer to Peer Finance Association shows the industry in buoyant mood ahead of the introduction of new regulations in April, with P2P lending increasing by 121% during 2013.
Peer-to-peer lending platform Zopa has raised £15 million in a funding round led by hedge fund Arrowgrass Capital Partners.
The UK government is preparing to allow the inclusion of peer-to-peer lending within Isas, giving investors a tax-free return on their investments, according to the Telegraph.
The world's first peer to peer lender, Zopa has now lent over £400 million to UK borrowers since it launched in 2005. Record lending levels highlight how consumers are fully embracing peer to peer lending as an alternative way to save and borrow which bypasses the banks to get a better deal.
Zopa has helped savers to lend to borrowers looking for personal loans for over 8 years, providing better returns to savers and lower rate loans to borrowers.
Frustrated by high street banks' unwillingness to lend to small and medium sized businesses, the UK government is handing over millions of pounds to peer-to-peer lenders to distribute.
Jacob Rothschild's investment trust, RIT Capital Partners, has acquired a stake in peer-to-peer lender Zopa. Financial details of the deal have not been revealed.
© Finextra Research 2014