10%+ returns drive investors’ interest in P2P lending
Last week, London hosted LendIT, the biggest evet about P2P lending. P2P lending is the practice of lending money to individuals or businesses through online services that match lenders directly with borrower. I like it because:
1/ it gives easier access to funding to young companies
2/ as investor, you can make 10% + returns in euro (book me for detaied tips — https://calendly.com/pavelcurda )
LendIt’s mission is to connect major players, platform, investor and service provider in the space. I spoke to Jason Jones, co-founder of LendIt. He has been organizing P2P meetups since 2012.
Pavel: Who is p2p lending for?
Jason: P2p lending is more prevalent for established, profitable small businesses like small service providers, manufacturers, restaurants, and other traditional businesses. A traditional bank’s loan book is approximately 50% mortgages, 30% business, and 20% consumer. Over time online lending should have a similar breakdown. The innovation comes in the form of UI/UX, Digital marketing, tech applied credit underwriting & fraud detection, and capital markets structure. So you could say that online lending is rebuilding the traditional lending business built on tech.
Pavel: Who are top players in Europe?
Consumer UK: Zopa, ratesetter
Consumer Germany: Aux Money, kreditech (short term), Smava
Consumer France: Younited Credit
Small biz UK: Funding Circle, Marketinvoice, iwoca, Assetz
Small biz france: finexkap
Real estate: LendInvest, Landbay
Pavel: What were the hottest topics at LendIt Europe this year?
- Lord Turner (Senior Fellow Institute for New Economic Thinking) reversed his position and took a positive view on the industry
- The fintech verticals are intertwining
- The industry is poised for an influx of capital from retirement accounts once Isa’s are approved.
Pavel: How is this business regulated?
Jason: It is regulated by the FCA in the UK. The industry created a working group called p2pfa, which provided a framework for the regulators. It was adopted and went into law last year.
Some stats — http://www.p2p-banking.com/tag/loan-volume/