This report was commissioned by the UK Peer-to-Peer Finance Association (P2PFA) and produced by Oxera. The 74-page report presents findings of an economic assessment focusing on the benefits and impact of the p2p lending industry.
With the FCA conducting their review of the P2P lending industry this report is clearly aimed at informing public policy. But rather than be a self-congratulatory piece with little substance it is a thorough analysis of the sector in the UK and contains information never before made public. The information presented includes data from the eight members of the P2PFA: Funding Circle, ThinCats, RateSetter, Lending Works, Zopa, MarketInvoice, LandBay and LendInvest.
Topics discussed in the report are:
- Overview of how P2P lending works, explaining fundamental economics and potential misconceptions.
- Benefits of P2P lending to both borrowers and investors.
- How P2P platforms manage risk including credit risk, liquidity and platform risk.
- Investor understanding in P2P lending.
- Factors to consider during the regulatory review of the industry.
