The Crowdfunding and Peer-to-Peer Arguments Heat Up
There has been more high profile coverage of the crowdfunding and peer-to-peer lending industries recently as politicians, regulators and industry advocates have all been busily declaring their concerns and ambitions for these fledgling, yet potentially hugely influential industries.
Crowdfunding is either seen as the biggest scandal of a generation in the making or the biggest positive transformation to hit the business funding market, probably since the internet. Unsurprisingly, those in favour want light touch regulation, those in opposition want the tightest possible regulation to prevent abuse of the process to protect the consumer, and to protect the standing of the high street banks in British society.
But has the argument really moved on? Probably not, the difference now is where these arguments are taking place. National newspapers are now the battle ground, rather than the comments section of a far-flung website visited by ten people a month.
14th Aug, 2013
Is peer-to-peer lending the new saving?
As interest rates look set to remain at a record low until employment figures recover, Nick Moules asks whether people waiting for savings to bounce back are waiting in vain.
Keen followers of the peer-to-peer lending industry will know the two main contributors to its rising popularity – the difficulty individuals and businesses experience securing reasonably priced credit and dire savings rates.
While credit could improve for businesses and individuals, the medium term prospect for savers looks bleak.
14th Aug, 2013
Yorkshire’s P2P Imbalance
There is a negative imbalance between borrowers and lenders who take part in peer-to-peer (P2P) schemes in the Yorkshire area, according to data published by the Open Data Institute (ODI).
- Between October 2010 and May 2013, Yorkshire businesses and consumers borrowed £32,756,000 through P2P schemes – £12,172,000 more than the amount invested by lenders in the region.
- Of the money lent by Yorkshire lenders, only 9.7% remains in the region, while the largest share (14.1%) helps to fund small businesses in the South East.
- York is the only city in the region that lends more than it borrows, while Sheffield’s borrowers received the highest amount of funding, a total of £7,709,486. £3,177,211 more than was lent by individuals from the city.
- As a county, North Yorkshire lends more than it receives, with a net balance of £193,000.[1]
12th Aug, 2013
rebuildingsociety.com Launches its Third Client into Crowdfunding
Peer-to-business lending platform, rebuildingsociety.com has launched three crowdfunding sites powered by its technology; Be The Lender, eMoneyUnion and Acorn Commercial Finance.
Crowdfunding is an online market that connects individuals and businesses looking to raise funds, either through an equity stake sale, a debt arrangement or rewards, with individuals willing to invest, lend or donate.
Since publicly announcing the availability of its technology on a white-labelled basis in June, the Leeds-based company has built a thriving sales pipeline with other sites currently in development. Enquiries have come from the UK, Europe, the US and the Middle East, evidence of the widespread appeal of crowdfunding and its many guises.
09th Aug, 2013
Changes to the Micro Loan Market and Fee Structure
From Monday 12 August at, holders of micro loans on rebuildingsociety.com will be given greater choice of the rates at which they can buy and sell micro loans as the parameters will be widened to offer a 5% premium and 5% discount option.
At the same time, the fee for trading micro loans will increase from 0.25% to 0.5%.
The management team decided against introducing an annual account management fee or a flat joining fee for lenders and this was considered to be the fairest way of introducing a modest rise to meet costs as the business prepares for regulation.
It will also finance increased marketing of the micro loan market to new lenders, further improving liquidity.
05th Aug, 2013
rebuildingsociety.com in the Financial Times
rebuildingsociety.com featured in an article in the Financial Times about the rise of peer-to-peer lending.
The full article is here: http://www.ft.com/cms/s/0/250c9d92-ee1c-11e2-a325-00144feabdc0.html#axzz2b5Jykfne (A subscription is required to view the entire article)
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