P2P Sector Defies Proposed referendum on United Kingdom membership of the European Union with jitters record month
alternative financial platforms in the UK originate in September £ 364 million in the form of loans, is to make the highest month on record and the previous record of £ 345.5 million set in March 2016 refer to specifications on 6 through alternative financial data in October published vendors AltFi data.
month formation volume had declined since March, which many warn of a slowdown of growth in the industry, due to a long list of problems including weakness in major global credit markets, lenders the consequences of recent events in US P2P Lending Club, and the voice of the UK to leave the European Union.
Christian Faes, said chief executive of real estate lenders LendInvest the company had expected that the investors following the post-referendum uncertainty to be more careful, but that the response would have been different.
Faes said, “This quarter has us really well, we thought about the business, it would be a bit more prudence..”
He believed the growth was driven in part in formation of the Bank of England August rate cut to seek more investors leading alternatives in their search for yield.
Faes said: “We have far more calls were about the Bank of England cut interest rates, as we have had over Proposed referendum on United Kingdom membership of the European Union, it underscores the difficulty that the average saver has [in a prolonged period of low interest rates]..”
The company reported on October 7 that it had booked 3.3 million in profits for the fiscal year ended March 31 compared to the previous year £ £ 3.4 million, marks the third consecutive year profits.
AltFi noted that the positive development of the sector was seen in September across the board, with the four largest platforms – financing district, Zopa, Council Etter and MarketInvoice – all reservation record months. It is proposed that credit institutions do not seem to be the driver, with levels of total loans generally of institutions favored below 60% of the monthly volume originating in March to 46% in September.
AltFi proposed seasonality may have affected volumes, a traditionally prolific month for P2P lending with September.
Jaidev Janardana, the chief executive of Zopa, said: “September and October seasonally strong months in consumer credit, but we have implemented some important changes that have delivered a record month in lending volume.”
Changes include the introduction of new marketing channels, he said.
Janardana added: “We remain vigilant for signs of consumer credit deterioration post-Proposed referendum on United Kingdom membership of the European Union The messages are all positive now, but we’ll stay alert at least until Article 50 is triggered, and we can consumers and businesses to measure response. . “
Faes agreed that it might be a “false sense of security” were and that could arise as more detail on Proposed referendum on United Kingdom membership of the European Union of the Industry “for a period of volatility”.
He stated: “It’s a bit too early to say what Proposed referendum on United Kingdom membership of the European Union means we are told, Proposed referendum on United Kingdom membership of the European Union means Proposed referendum on United Kingdom membership of the European Union, but we do not know what that means..”
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Our Source: http://www.efinancialnews.com/story/2016-10-07/uk-p2p-sector-defies-brexit-jitters-with-record-month?mod=rss-fintech
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