Sending Request.
Please wait...
Sign in.
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.
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.
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).
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.
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.
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)
