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100 peer-to-peer platforms
Since the launch of Zopa in 2005, there have been over 100 lending platforms allowing individuals from the UK to become peer-to-peer lenders. A number of these platforms no longer exist, having ceased trading, and a number of others have merged. Looking at all of the peer-to-peer lending platforms that launched in or before 2012, the list includes some of the best known P2P brands.
- Funding Circle
This list also includes European lenders such as Bondora (who launched as isePankur), and Burnley Savings and Loans who actually operate a local peer-to-peer lending model. Only half of the platforms that launched in or before 2012 are still around today. The notable failures include some perhaps less well known brands.
While the causes of platform failure are varied, the ratio itself is perhaps representative of what could happen in the future. Given that 75% of platforms that launched operations within the UK after 2012, the number of platform failures could rise over the next year. The risks that platforms are experiencing are now perhaps greater than ever, given the uncertainty of FCA authorisation status, increased competition and falling rates.