Peer to peer lender RateSetter has reported that for the year March 2019 losses have dropped from £27.5 million in the previous year to £4.2 million. The company claims it has taken a “big step towards profitability.
Topline revenue was reported at £33 million with total loans under management at £891 million.
RateSetter’s CEO, Rhydian Lewis OBE, issued a statement on the results:
“It is very encouraging that we are now within touching distance of profitability. Our model has always been differentiated from other peer-to-peer lenders because we have focussed on a low risk and liquid product for investors. On the borrower side, we compete in traditional and deep markets where we do not need to take undue risk to build a sizeable business. We believe this makes RateSetter the sustainable challenger to the banking model of deposit-backed lending. Some fintechs may have raced off quicker than us, but we think the tortoise will overtake the hare.”
Additionally, RateSetter’s total number of active investors reportedly rose by 26%. Over 600,000 investors have leveraged the platform.
RateSetter’s Innovative Finance ISA (IFISA) stands at over £1 billion invested.
RateSetter notes that no investor on RateSetter has lost a penny, due to its Provision Fund