Industry News

Loan Rejections Cost SMEs £4bn Per Year

The British Business Bank (BBB) says businesses are being prevented from reaching their full potential because of the big bank’s continued refusal to fund small businesses. The high street banks favour lending to larger businesses with a track record of profitability.   Thousands of small businesses are refused loans and the BBB estimates the figure…

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The Explosive Growth of Private Credit to Continue

  Private credit is now a globally established source of mainstream finance and according to a new report, Financing the Economy, is set to reach more than $1 trillion in market size by 2020.   The report is the latest study of the alternative credit  – or private debt as it is also known –…

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Alternative Finance Continues Its Steady March to Mainstream

  P2P (peer-to-peer) lender Zopa has announced it will partner with Saffron Building Society effectively allowing customers to apply for its loans via the Society’s 11 brick-and-mortar branches.    The new tie-up will enable borrowers to apply for a P2P loan at any of Saffron Building Society’s 11 branches across Hertfordshire, Essex and Suffolk and via Saffron’s…

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Concerns Mount for The P2P Sector

The industry is bracing itself for what could be the toughest test of the peer-to-peer (P2P) sector to date with a wave of providers expressing concerns over the recovery potential of some platform’s loans.   According to AltFi Data, the sector is worth an estimated £12 billion and analysts say they cannot accurately predict how…

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Industry Spotlight Shines on Commercial Bridging Market

  As the residential bridging market becomes increasingly competitive, more and more lenders are showing interest in commercial bridging and commentators are predicting a wave of new entrants into the sector.   Recent changes in the tax regime for landlords of residential buy-to-let properties means that more investors are switching into commercial property. This peak…

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The Alternative Lending Landscape Sees New Entrants

The investment banking giant Goldman Sachs is considering launching a consumer lending arm in the UK, which will compete with the likes of Zopa and RateSetter.   The US bank is reportedly looking to expand its retail banking business in the UK, initially with savings accounts and potentially moving into lending with the roll out of…

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P2P Should Diversify To Survive

The peer-to-peer industry (P2P), long touted as the biggest challenge to the high street banks is still suffering growing pains.   The long-standing supply and demand problem that platforms have experienced shows no sign of abating with many of the leading players are still failing to attract enough borrowers. Zopa, the oldest P2P lender, has…

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Bank Lending Falls, Not Driven by Switch to Alternatives

Small businesses are borrowing less, which could threaten their future growth, the Federation of Small Businesses (FSB) has warned. A report last week showed that bank lending to non-financial businesses fell by £698 million in July and according to the FSB this drop is not driven by a switch to alternative lending.   The latest Voice…

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Will Traditional Banks Take on Their Challengers?

  The number of the new banks seeking to disrupt the UK financial services landscape has increased in the last couple of years. These so-called ‘challenger banks’ are luring customers away from the traditional banks at an alarming pace, growing their customer base from those who are still suspicious of traditional institutions since the financial…

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Peer-To-Peer Lending Is in Good Health

The peer-to-peer (P2P) lending sector is seeing more and more money finding its way into the industry and according to AltFi’s David Stevenson “Overall the sector is in good health.”   Across the pond, the US marketplace lending space also appears to have emerged from its year-long malaise. With the industry leading platform Prosper, announcing significant…

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