The below infographic depicts some data points correlating with the forthcoming inclusion of peer to peer assets in ISAs. With the comment period closing on the UK Consultation regarding this change expectations are for final parameters to be announced sometime in early 2015. Both savers and P2P platforms should benefit from this policy shift. P2P lenders will be the beneficiary of a huge source of new investors juicing all participating platforms. Savers will have a new choice that can provide far better returns than a bank savings account and lower risk than equities.
Despite rather low consumer awareness (only 37% of savers indicate an interest in opening a P2P ISA) once P2P investment is available this number should move upward. The number of ISA accounts has actually declined during the last 2 years. Including P2P may stem this outflow for these tax advantaged accounts.
The below infographic is courtesy of the creative staff at RateSetter – one of the leading P2P platforms in the UK.