Orca, an independent whole of market research service for UK P2P lending, has created a comprehensive guide for investors evaluating P2P lending. “Peer-to-Peer Lending Investor Guide: Innovating an Ancient Credit Model” was created by the Orca team and published on their website today, free to download and embedded below. The authors, Orca Director Samantha McBride and Orca Co-founder Iain Niblock, were motivated by what they saw as a lack of accurate and detailed research available providing insight into the P2P lending market, which is still growing in favor with retail investors but often suffers unjust stigma from the broader investor market.
[clickToTweet tweet=”[email protected]_money posts new P2P lending guide @crowdfundinside @fintechinsider_” quote=”‘We have now surpassed the £11bn cumulative lending mark in the UK, with half of that coming from the past 18 months,’ said Orca’s Samantha McBride. “]
“This is an exciting time for the P2P industry. We have now surpassed the £11bn cumulative lending mark in the UK, with half of that coming from the past 18 months, and are witnessing growing diversity in the marketplace,” analyzed McBride. “With the industry poised for further growth, we decided to write this guide in the hope of supporting P2P investors and potential investors to better understand the asset class, by highlighting the benefits and, perhaps more importantly, the risks, while dispelling some commonplace myths.”
Orca’s analytic service recorded a new milestone for the asset class this month – £11bn cumulatively lent, all-time in the UK. With over 200,000 active investors and 30% of market share attributed to institutional investment, UK P2P lending is maintaining its growth trajectory, set for a market value of £15bn by 2020. In 2017 year-to-date, £3.4bn has been invested across P2P lending platforms, which is over £100m more than the 2016 total lent figure, according to the Guide. While the industry has seen significant developments in the past year there’s still reluctance from intermediaries to adopt the asset class, and a relative lack of accurate and comprehensive research for investors, advisers, and the broader audience to educate themselves.
[clickToTweet tweet=”[email protected]_money published new P2P report @crowdfundinside @fintechinsider_” quote=”‘In the first half of 2017 the market experienced a 59% market growth rate when compared to the same period in 2016,’ stated Orca’s Iain Nibock. “]
The ‘Peer-to-Peer Lending Investor Guide: Innovating an Ancient Credit Model’ aims to paint the full picture of P2P lending, by tracing its history and addressing the potential the sector offers moving forward. Topics covered include What is P2P?; The UK Landscape; Mega Trends; Future of FCA Regulation; Best Practices; Benefits and Risk.
“Peer-to-peer lending (P2P) is still growing at a rapid rate. Roughly 200,000 retail investors have benefited from the stable, attractive returns on offer with the industry surpassing £10 billion in cumulative lending. In the first half of 2017 the market experienced a 59% market growth rate when compared to the same period in 2016. An impressive figure considering the industry reached £3.2 billion of lending in 2016 alone,” wrote Niblock in the Guide. “The reasons for growth are clear: attractive, predictable investor returns which are shielded from stock market volatility; and downside protection through security provisions and the opportunity to diversify a portfolio with an alternative investment which was previously only available to institutional investors. The fundamentals of this asset class are extremely strong and so differentiated that we have no doubt that exceptional growth will continue in the years to come.”
Orca is in an exciting period of growth and development, and intends to not only support investors researching the asset class with their detailed guide, but continue addressing issues faced by existing and also new investors accessing the asset class.
“Orca’s main purpose is to support investors. We want to provide the research necessary to gain confidence when investing, and deliver solutions which make investors lives’ easier,” added Niblock via email. “It’s an interesting time in P2P just now and we aim to position ourselves right at the forefront as the asset class continues growing.”