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Zopa report large growth in lenders
Zopa have just reported a tripling of new lenders in the first quarter of 2013, compared with the first quarter of 2012. This is an amazing achievement for Zopa, the company that started peer-to-peer lending in 2005. We should also recognise that every 4 to 6 new lenders (on average) allow a new borrower to get a low rate loan through the Zopa platform.
Here is the full statement from Zopa:
Financially savvy savers are flocking to inflation-busting rates of 5.1% in a bid to get a good return. Figures released today from Zopa reveal a 197% uplift in savers across Q1 2013, compared to the same period in 2012.
With 2,291 savings accounts currently available in the UK and only five of those providing rates that are in-line with the Consumer Price Index (CPI) of 3.5%, the vast increase in the take-up of Zopa’s offering is not surprising. Bringing the peer-to-peer lending solution into the money mainstream, Zopa currently has over 39,000 active savers who have lent in excess of £290million since its inception in 2005.
Each saver has enabled borrowers to get an affordable, low-rate loan and ensured they will earn above the regular rate of interest. As a result of the uplift in savers lending through Zopa in Q1 2013, 45% of borrowers have been able to purchase a new car, 21% have been able to undertake home improvements and even 2% can cover their wedding expenses. This circle of smart money is fuelling the purchase power within the economy and providing savers and borrowers with rewarding options that are outside of traditional financial institutions.
Giles Andrews, CEO of Zopa said “Since 2005 Zopa has been enabling savers and borrowers to connect and get a better financial deal. Our savers and borrowers are extremely smart and sensible with money, so the 197% growth we’ve seen in the first quarter of 2013, compared to the same period last year, doesn’t surprise us given the poor rates offered by banks.”
Zopa is a keen champion of the sector and always tries to enhance the work being undertaken to regulate the industry by the Peer-to-Peer Finance Association.
This goes to further illustrate that 2013 is the year that peer-to-peer lending goes mainstream.