So far the non advised, direct to consumer route has achieved great success (since the start of 2014 the market has doubled). You may wish to consider whether these products, with their high returns, have a place in your clients’ portfolios.
Adviser Home has partnered with RateSetter to make it easier for advisers to include these products for their clients. We have more information here including details of a new adviser platform.
Infographic
This simple Infographic is a good way to access highlights from new Nesta research.
Research Comments from Rhydian Lewis, Founder and Chief Executive, RateSetter
· “The potential for growth is extremely exciting in what is still, despite its success, a relatively untapped market - with 42% of UK consumers remaining completely unaware of P2P.
· “At RateSetter, we have witnessed phenomenal growth this year, lending over £236m, an annualised year to date growth rate of over 205%.
· “Inclusion in ISAs will further boost the sector. With this on the horizon for early 2015, there is a feeling that we are on the brink of a spectacular change in the financial landscape.”
Risk Management
When choosing peer-to-peer lending, 92% of people have stated that knowing their money was protected by a provision fund was an important factor.
Comment from Rhydian Lewis, Founder and Chief Executive, RateSetter:
· “This landslide figure is substantiation that the nation trusts in the safeguards put in place by the platforms to protect their money.
· “Peer-to-peer appeals to those seeking a higher income from their money. For this reason there is simply no place for costly FSCS coverage within the sector, and to seek it would be to disregard the industry’s mission to deliver a decent return for lenders. We are instead offering effective and bespoke risk mitigation systems which work in the best interests of consumers.
· “RateSetter’s Provision Fund was the first of its type in the industry and remains the largest. Whilst there is no guarantee, no lender has ever lost any money. It has allowed us to deliver predictable and sound returns that outstrip those on offer from FSCS-covered savings accounts. It ensures that our growth is supported by a sustainable business model.”
Find out More
You can read more about P2P and RateSetter and the Adviser Platform here>>
