Peer to peer lending news round up - 20th June, 2014
International Peer to Peer Lending News
Chinese Peer to Peer Lending website Yooli.com has received a significant investment from Morningside Venture Capital, according to its CEO. The site has around 760,000 users and facilitates 100 million yuan in loans every four days (over $18 million NZD). Though unconfirmed, it is believed the investment exceeded $50 million USD, with the company’s valuation now believed to exceed 2 billion yuan (over $368 million NZD). Check out more here.
Meanwhile, those regulation shake ups are now allowing self-invested personal pensions to invest in Peer to Peer Lending. Find out more here.
Financialdirector.co.uk had an interesting overview of the industry, which you can read here.
Off the back of a number of regulation shake ups in the U.K. this year, the primary U.K. based Peer to Peer Lending platforms have agreed on a standard method of loan default calculation. The previous lack of standardisation in the industry made it difficult for comparisons to be made across platforms. Check out the source for more specific information on how defaults will now be calculated.
Following up on some U.K. news we’ve discussed in past round ups, movements to encourage banks to recommend alternative finance sources to customers they turn down are gaining traction, with Santander about to become the first U.K. high street bank to do so, in a new partnership with Funding Circle. Read more about the development in the Financial Times. Funding Circle have had a successful week themselves, with a record breaking £7.5 million in loans hitting the marketplace.
India’s securities marker regulator may soon provide a legal platform for crowdfunding in the country, according to techcircle.in, with the proposal potentially restricting the field to accredited investors. You can find out more about the proposal here.
Lending Club, the largest Peer to Peer Lending platform in the U.S. landed itself in CNBC’s Disruptor 50 list this week. Check out the full list and you’ll see that the Peer to Peer revolution is making waves, with Etsy (an online marketplace for artisans) and Uber (a mobile app that connects people with taxis) both reaching the top 10.
Patch of Land, a real estate crowdfunding platform recently passed the $3 million mark after just 6 months in operation. You can read more about it here.
The Sydney Morning Herald had an interesting article this week with the cofounders of SEEK and Atlassian. Seek’s co-founder, Paul Bassat, believes start-ups like Peer to Peer Lending platforms will challenge traditional banks, with Mike Cannon-Brookes of Atlassian calling Australian bank profits “insanity”. Keep in mind that these Aussie banks own the big four NZ banks – whose profits are even higher. Food for thought. Read the full article here.
New Zealand Peer to Peer Lending News
Gareth Vaughan of interest.co.nz confirmed that the FMA has received two Peer to Peer Lending licence applications, one of which being Harmoney’s. The FMA has also received four crowd funding applications. You can read the full article here, which goes into more detail on the FMA’s role.
More recently, Gareth posted a lengthy article on Peer to Peer Lending in New Zealand. It’s a thorough and well researched piece that is inarguably worth reading. He closes the piece, saying, “There’s no getting past the fact that P2P has the potential to reshape banking, especially retail banking. As a journalist in the late 1990s and early 2000s I recall newspaper publishers not taking the internet seriously. Time has shown that to be a poor judgment. Because as Croad put it; “you can’t stop progress.”” You can (and certainly should) read the full article here.