The UK Peer to Peer Lending Association (P2PFA) is out with their quarterly report of member platforms. According to the Association, P2P lending increased more than £866 million in Q1 taking cumulative lending for the Association’s members to more than £10.5 billion.
P2PFA members are required to meet robust standards of operation. Currently, the member platforms are: CrowdProperty, Crowdstacker, Folk2Folk, Funding Circle, Landbay, Lending Works, ThinCats and Zopa.
In a change from previous quarterly reports, the P2PFA is presenting its quarterly data to include statistics for non-consumer lending flows disaggregated between business and real estate/property loans.
P2PFA Chair, Paul Smee, commented on the decision to present non-consumer lending flows facilitated by P2PFA platforms saying the shift reflects the growing maturity of the different markets served and the value in examining the various dynamics of those specific segments.
“The breadth of the markets served combined with growing awareness and the pace of innovation has made a very significant difference in the contribution of alternative finance to the real economy,” said Smee.
Robert Pettigrew, Director of the P2PFA, added that there has been an increase in the levels of lending during Q1 – including both lenders and borrowers:
“… more than a quarter of a million consumers, nearly fifty thousand businesses and more than eight hundred real estate and development projects have loans financed by more than 150 thousand lenders on member platforms. Each of these, taken in the context of a trajectory of growth, underscores the valuable contribution which peer-to-peer lending platforms continue to make to the UK economy.”
The P2PFA was formed in 2011 as a self-regulatory entity for the new sector of finance. P2P lending involves the direct matching of funds between investors and borrowers through an online platform.
Recently, the Financial Conduct Authority (FCA) updated their rules for the industry – a move that received mixed reviews from industry participants.
Aggregate levels of peer-to-peer lending by P2PFA platforms between Q4 2017 and Q4 2018:
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|
Q1 2018 |
Q2 2018 |
Q3 2018 |
Q4 2018 |
Q1 2019 |
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|
Cumulative Lending |
£7,351,861,354 |
£8,043,217,143 |
£8,786,291,681 |
£9,595,548,965 |
£10,539,063,808 |
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|
-o/w non-consumer lending |
£4,088,460,534 |
£4,509,345,016 |
£4,991,382,520 |
£5,519,645,135 |
|
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|
-o/w lending to businesses |
|
|
|
|
£5,708,031,575 |
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|
-o/w lending to property & real estate |
|
|
|
|
£446,673,199 |
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|
-o/w lending to individuals |
£3,263,400,820 |
£3,533,871,127 |
£3,794,909,161 |
£4,077,318,465 |
£4,384,359,034 |
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|
Base stock of loans (outstanding loan book) |
£3,498,065,429 |
£3,711,828,191 |
£3,956,885,758 |
£4,267,975,224 |
£4,673,466,536 |
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|
-o/w non-consumer lending |
£2,137,799,594 |
£2,290,747,092 |
£2,488,949,319 |
£2,743,083,518 |
|
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|
-o/w lending to businesses |
|
|
|
|
£2,737,245,538 |
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|
-o/w lending to property & real estate |
|
|
|
|
£338,056,167 |
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|
-o/w lending to individuals |
£1,360,265,835 |
£1,421,081,099 |
£1,467,936,439 |
£1,524,891,706 |
£1,598,164,831 |
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|
New Lending |
£684,290,716 |
£690,971,072 |
£720,979,029 |
£809,257,285 |
£866,784,209 |
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|
-o/w non-consumer lending |
£415,229,498 |
£420,499,764 |
£459,941,996 |
£526,777,616 |
|
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|
-o/w lending to businesses |
|
|
|
|
£477,249,348 |
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|
-o/w lending to property & real estate |
|
|
|
|
£82,494,292 |
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|
-o/w lending to individuals |
£269,061,218 |
£270,471,308 |
£261,037,033 |
£282,479,669 |
£307,040,569 |
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|
Capital Repaid |
£396,757,358 |
£435,267,000 |
£457,325,319 |
£454,966,728 |
£476,972,062 |
||||||
|
-o/w non-consumer lending |
£200,919,771 |
£225,610,955 |
£243,143,627 |
£243,389,445 |
|
||||||
|
-o/w lending to businesses |
|
|
|
|
£244,170,828 |
||||||
|
-o/w lending to property & real estate |
|
|
|
|
£16,202,447 |
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|
-o/w lending to individuals |
£195,837,587 |
£209,656,045 |
£214,181,692 |
£211,577,283 |
£216,598,787 |
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|
Net Lending Flow |
£287,533,338 |
£255,202,073 |
£263,036,509 |
£354,293,557 |
£455,082,097 |
||||||
|
-o/w non-consumer lending |
£214,309,707 |
£194,386,810 |
£216,181,168 |
£283,391,171 |
|
||||||
|
-o/w lending to businesses |
|
|
|
|
£299,277,115 |
||||||
|
-o/w lending to property & real estate |
|
|
|
|
£66,561,725 |
||||||
|
-o/w lending to individuals |
£73,223,631 |
£60,815,263 |
£46,855,341 |
£70,902,386 |
£90,441,782 |
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|
Number of current lenders |
147,882 |
150,041 |
148,484 |
151,207 |
152,921 |
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|
Number of current borrowers |
273,301 |
269,158 |
278,313 |
288,829 |
304,902 |
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|
-o/w are non-consumer borrowers |
51,508 |
40,615 |
43,830 |
47,457 |
|
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|
-o/w are businesses |
|
|
|
|
49,848 |
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|
-o/w are in property & real estate |
|
|
|
|
819 |
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|
-o/w are individuals |
221,793 |
228,543 |
234,483 |
241,372 |
254,235 |
Cumulative P2PFA platform level lending data between Q1 2018 and Q1 2019:
| Q1 2018 | Q2 2018 | Q3 2018 | Q4 2018 | Q1 2019 | |||||||
| CrowdProperty | £23,013,692 | £27,127,892 | £33,952,973 | ||||||||
| Crowdstacker | £37,714,968 | £46,612,890 | £51,265,724 | £54,310,946 | £55,854,888 | ||||||
| Folk2Folk | £212,510,805 | £234,562,305 | £257,130,306 | £270,860,306 | £282,879,306 | ||||||
| Funding Circle | £3,448,615,744 | £3,806,000,000 | £4,183,000,000 | £4,625,000,000 | £5,044,000,000 | ||||||
| Landbay | £109,445,017 | £133,771,821 | £182,891,798 | £231,907,991 | £294,378,607 | ||||||
| Lending Works | £98,772,559 | £115,658,873 | £131,862,745 | £145,075,844 | £161,954,993 | ||||||
| ThinCats | £280,174,000 | £288,398,000 | £294,091,000 | £309,953,000 | £443,639,000 | ||||||
| Zopa | £3,164,628,261 | £3,418,213,254 | £3,663,046,416 | £3,932,312,986 | £4,222,404,041 | ||||||
| TOTAL | £7,351,861,354 | £8,043,217,143 | £8,786,291,681 | £9,595,548,965 | £10,539,063,808 |