P2P Weekly: Industry Responds

The biggest news in the UK P2P lending world this week was negative comments from Adair Turner about the P2P industry.

Turner is the former chairman of the Financial Services Authority, the predecessor of the FCA. Turner told the BBC, “The losses which will emerge from peer-to-peer lending over the next five to 10 years will make the bankers look like lending geniuses.” Of course, P2P experts were quick to set him straight. Christine Farnish published her thoughts, writing “All members of the P2PFA operate to high standards of transparency and business conduct…All members of the P2PFA operate to high standards of transparency and business conduct…I challenge anyone to find this level of transparency in any other part of the financial services market.”

Other P2P leaders sounded off too: “The peer-to-peer industry is both broad and diverse, and to paint it with a single brush stroke as dangerous is ultimately unhelpful for consumers,” said Landbay CEO John Goodall.

In other news:

“Credit unions beginning to embrace fintech: ‘The way Canadians use financial services is rapidly changing,” via Financial Post

British Columbia’s First West Credit Union and Vancouver-based Grow have formed a new alliance designed to serve B.C. residents. And an Ontario credit union has announced plans to offer unsecured lines of credit through its own online platform. Financial leaders agree that the way Canadians use credit is changing, and companies are working hard to adapt.

“P2P lending: Four predictions for 2016,” via City A.M.

One P2P lending executive offers some insight into the coming year. As entrants to the industry rise, so may defaults, he writes, and the Innovative Finance ISA will continue to be front and center of the industry’s development.

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