28 August 2016
Find out more

RateSetter becomes first P2P lender to be risk rated

11 July 2014  |  2391 views  |  0 Source: RateSetter

RateSetter, the UK's biggest peer-to-peer (P2P) lender by monthly volume, has now become the first P2P platform worldwide to be risk-rated by the ratings and research agency FE, with a risk score of 1 - which is similar to cash accounts.

FE is a leader in the provision of investment data, software tools and performance analysis to the financial services industry. FE Risk Scores measure the riskiness of any given financial instrument in relation to the FTSE 100. Cash-type investments have scores near to zero, mutual funds tend to have scores in the 0-150 range, while equities will generally be above 100.

FE scored RateSetter's P2P products with a risk rate of 1, just above cash.

These ratings are calculated by analysing more than 18 months of historical pricing. This industry standard methodology is relied upon by wealth advisers all across the UK to make informed decisions during the investment process. FE's cash-like risk rating, when taken along with the company's industry-leading Provision Fund, is another confidence boosting addition to RateSetter's saver proposition.

Rhydian Lewis, CEO and Founder of RateSetter, said: "We are delighted to be working with FE. Their risk rating of 1, just above cash, provides RateSetter customers with a tangible metric and added confidence when investing."

"As we continue our exceptional growth, at a time when UK P2P lending has exceeded the £1bn mark, it is more important than ever that our savers have essential volatility information when investing. As the only P2P company worldwide to have a risk rating and with the added benefit of our Provision Fund, we are becoming the go-to P2P provider for investors looking for both security and return."

Mika-John Southworth, Marketing Director, FE, said: "At FE we understand that taking necessary, calculated risks is part of everyday life, which is why we have launched FE Risk Scores. Investors need to be sure that they are making a truly informed decision based on the facts, and FE Risk Scores provide a single, easy to understand measurement of the relative riskiness of individual investments or even an entire portfolio. RateSetter's low risk score should act ass reassurance to anyone who is looking for an alternative to a cash style investment fund."

In June 2014, RateSetter was the largest P2P platform in the UK in terms of monthly volume (£22.9m). It is also the UK's fastest growing major P2P lender with growth of 219% in 2013 in comparison to 107% for the sector overall. 

Comments: (0)

Comment on this story (membership required)

Related blogs

Create a blog about this story (membership required)
Visit capgemini.comVisit VocaLink.comFind out more

Top topics

Most viewed Most shared
hands typing furiouslyBig Data's Three Big Trends in 2016
8034 views 5 | 22 tweets | 13 linkedin
hands typing furiouslyHow Banks Are Losing Millions by Ignoring...
7700 views 11 | 24 tweets | 10 linkedin
Nordea looking for AI and blockchain breakthroughsNordea looking for AI and blockchain break...
6685 views comments | 17 tweets | 21 linkedin
India's Unified Payments Interface goes live with 21 banksIndia's Unified Payments Interface goes li...
6145 views comments | 16 tweets | 18 linkedin
R3 blockchain consortium sheds light on Concord projectR3 blockchain consortium sheds light on Co...
6139 views comments | 14 tweets | 14 linkedin

Featured job

Find your next job