21 February 2017
Visit experienceinfosys.com

UK P2P lenders form trade body

18 August 2011  |  8531 views  |  0 Savings house in hands

UK peer-to-peer (P2P) lending sites Zopa, Funding Circle and RateSetter have set up a trade body.

The rivals say their new P2P Finance Association will help ensure "high minimum standards of protection" for lenders and borrowers in the still young industry. Specifically, it will work to get "effective regulation" of P2P lending on the government's agenda.

Zopa, Funding Circle and RateSetter are the UK's three biggest platforms in the UK for social lending, an industry that will account for more than £100 million of loans to individuals and small businesses this year.

The association expects to add more members and is open to any outfit that "that facilitate funding via direct, one-to-one contracts between a single recipient and multiple providers of funds, where the majority of providers and borrowers are consumers or small businesses. Generally, funding is in the form of a simple loan, but other instruments may evolve over time."

The body is being run by a management committee comprising a representative from each member. Zopa CEO Giles Andrews will act as chairman for the first year before the role is given to another member.

Says Andrews: "We are very pleased to be taking this significant step in the evolution of this new and exciting sector. The Association recognises that this fast growing market will benefit from the high standards that the Peer-to-Peer Finance Association has laid down and will police amongst its members."

Rhydian Lewis, CEO, RateSetter, adds: "As an industry, we would all encourage clearer regulation of P2P finance (not least because it would address the perception that P2P is somehow not regulated). The Association will give us a platform with which to lobby for P2P to be considered on an equal footing with other financial services."

Andrews has been lobbying for regulatory changes that take into account the emerging industry for some time, initiating a campaign back in 2009 for a change to the tax laws to let people offset bad debts against their income from lending on the platform.

KeywordsBAI

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

P2P lender Funding Circle raises £2.5 million

P2P lender Funding Circle raises £2.5 million

21 April 2011  |  6695 views  |  0 comments
Zopa sees surge in demand as banks fail to meet consumer interests

Zopa sees surge in demand as banks fail to meet consumer interests

09 March 2011  |  9855 views  |  0 comments
Kiva pilots student micro-lending

Kiva pilots student micro-lending

22 September 2010  |  5433 views  |  0 comments
Lending site for small businesses launches

Lending site for small businesses launches

23 August 2010  |  5569 views  |  0 comments
Social lending site Yes-Secure preps for UK launch

Social lending site Yes-Secure preps for UK launch

21 May 2010  |  8884 views  |  0 comments
Prosper closes in on series d funding

Prosper closes in on series d funding

01 April 2010  |  6847 views  |  0 comments
Zopa quits US

Zopa quits US

10 October 2008  |  9676 views  |  0 comments
Banks facing increasing competition from social networks - Gartner

Banks facing increasing competition from social networks - Gartner

06 February 2008  |  14746 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit Yelloco.co.ukvisit dh.comVisit contisgroup.com

Top topics

Most viewed Most shared
IBM and Visa join forces to turn billions of connected devices into points of saleIBM and Visa join forces to turn billions...
17740 views 11 comments | 54 tweets | 88 linkedin
Nesta launches £5 million Open API challengeNesta launches £5 million Open API ch...
10393 views comments | 21 tweets | 19 linkedin
Jaguar embeds payments into digital dashboardJaguar embeds payments into digital dashbo...
10389 views comments | 49 tweets | 58 linkedin
The fintech effect: Banks buy in to benefits of boosting financial well-beingThe fintech effect: Banks buy in to benefi...
9295 views comments | 17 tweets | 12 linkedin
Kevin the bot uses blockchain to offer insurance for P2P transactionsKevin the bot uses blockchain to offer ins...
8436 views comments | 17 tweets | 14 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job