Our recent quarterly update on peer-to-peer bad debt and late statistics have thrown up a few interesting, but also concerning, pieces of information. Two of the major peer-to-peer companies are no longer publishing their bad debt and late statistics, so it is no longer possible to comment on them. We will be contacting RateSetter and ThinCats to attempt to get these reinstated. It is unlikely this was done to hide any "bad" data as both companies previously were performing well to estimates and their lates were comparably low.
ReBuildingSociety is now the best performing company against their initial estimates, but this may be short lived as they also have a high percentage of loans that are late, but due to the comparatively low number of loans this is not statistically significant. Encash (YES-secure), which has only arranged three loans in 2013, now have one fifth of their loans now classed as late.
This data still shows that peer-to-peer is a good proposition, and most of these figures are those banks would be envious of.
The P2P money website are running a poll on the P2P Independant Forum on the term "crowdfunding". Should this term also be applicable to peer-to-peer lending?
The reason for the poll is that we are starting to see the interchange of these two terms, but some people see these as mutually exclusive concepts, one lower risk on lending money, the other one higher risk on investing money. The FCA and EU are starting to use the term crowdfunding as a heading for all crowd activities, but I'm not sure everyone would agree with this terminology.
We would appreciate your view on this topic.
isePankur.ee, the Estonian peer-to-peer provider, has been attracting an increasing number of British lenders. Pärtel Tomberg, CEO of isePankur.ee, told P2P Money that UK lenders now make up the third biggest group of lenders on the platform after Estonians and Germans. British lenders make up €630,000 (8.2%) of the €7.7million outstanding loans. For those who registered in 2013, UK lenders make up 13% of the total.
Data from P2P-Banking.com, our European equivilent, indicate that isePankur.ee increased its monthly loan amount in October by over 440% compared with the same month in the previous year. In the UK, this growth is only exceeded by ReBuildingSociety, which was a new entrant to the sector in 2012.
ReBuildingSociety has been successful in attracting borrowers and demand has grown to such a level that the site has put out an appeal for new lenders to join, and take advantage of the excellent interest rates available. Activity on the site has been rising rapidly in the last two months, with over £500,000 advanced in September and October, taking its total to over £1.1million, but more funds are required to keep pace with businesses looking to borrow through its marketplace.
Nick Moules from rebuildingsociety.com said:
Our average gross return is up to 15.4% and lenders are now lending an average of £5,000 each. We’ve made a number of improvements to the user experience recently and our deal flow is increasing all the time. Now is definitely a good time to take advantage of these rates as they’re bound to drop over time.
There is no maximum investment in any one auction, with the minimum bid £10 and doesn’t charge lenders a management fee unlike some of the other peer-to-peer sites.
Following the closing of the Unofficial Funding Circle Forum yesterday which we reported, a new Independent Forum has been launched. This has been funded by Assetz Capital, who have made the following statement on the forum.
Assetz Capital, as a gesture of goodwill, has paid for the set up of this board. It is the intention of Assetz Capital to transfer control of the board to the wider community as soon as possible.
The views or opinions set out in this forum are those of the authors only and do not necessarily reflect the view or opinions of the Assetz Group of companies. No responsibility or liability is or will be accepted by the Assetz Group of companies as to the accuracy or completeness of those view or opinions and any such liability is expressly disclaimed. The authors are held solely responsible and liable for any comments or views they make.
With regard to moderation they also made the following statement to attempt to reassure any skeptics.
Welcome to everyone. Whilst Assetz Capital has gifted the cost of this board to the wider P2P community, it will not be running it. That will be down to you the users to moderate the board.
I hope in the longer term that the other P2P businesses will engage in the board and it becomes an open forum for all.
We hope this will take the place of the Unofficial Funding Circle forum. The URL of the site is as follows: