Weekly peer to peer lending news round up - 11th July, 2014

Posted 11 July 2014.

It’s been a pretty big week here at Harmoney, with news that our peer to peer lending licence application was approved by the Financial Markets Authority. We’re switching things up a little for this week’s round up blog, so it’s Harmoney news first, and then NZ, before we wrap it up with a few of this week’s international headlines.

Harmoney's licence announcement in the media.

First up on Tuesday morning, Interest.co.nz broke the news with this piece. It’s been updated a couple of times since then following the FMA’s media release (which you can read here).

The New Zealand Herald published a couple of pieces on the news, with one initial announcement here on Tuesday, and a subsequent follow up the next day here. The news was also covered in The National Business Review, stuff.co.nz, and scoop.co.nz.
You can find our media release here, on our media page.

We also just had a piece go live of TV3 news tonight, at 6:30. If you missed it, you can watch the clip here.

New Zealand finance & peer to peer lending news.

Interest.co.nz spilled some speculative news this week, with revelations that a New Zealand peer to peer lending applicant, believed to be John Walley’s Lendit, is up for sale. Check out more on it here. They also published a subscriber only piece with further details about FMA regulations surrounding peer to peer lending, which, if you’re an interest.co.nz subscriber, can be found here.

The New Zealand Herald had a few interesting finance articles this week. An article this morning looked at some of the interesting things Kiwis have stakes in thanks to the NZ Super fund – you can find out exactly what here.

Another article detailed the findings of a global study showing a drop in living costs in Auckland and Wellington.

There was also a great piece about young New Zealand investors, which is worth reading. It looks at a group of Kiwis below 35 actively investing in a number of areas, predominantly property. Another article discusses results from a study showing that New Zealand teenagers are holding up well in financial literacy scores worldwide.

Inarguably the most moving piece this week, and a must read, one article detailed the results of a study of low-income families in New Zealand, asking them about their difficulties, the barriers they face, and what they believe can be done to help support New Zealand families in their position. Unsurprisingly, key features were debt, housing, education, justice, food and health.

A father who shares a three-bedroom state house with his wife and eight children says: “My 17-month-old and my 3-year-old boy are sleeping in the room with us. Sometimes I sleep on the floor cos my boys like their space… I let my daughter sleep with the boys — halve the rooms up for them and I don’t have enough beds… so they have to share a single bed each.

You can read the full article here.

International peer to peer lending news.

The big one this week was the announcement that Lending Club has surpassed $5 billion in loans funded since opening its doors, with $1 billion funded in the last quarter alone. Lending Club’s media release on the announcement can be found here, and there’s a great infographic detailing the company’s journey here (the batmobile makes a re-appearance in this one).

Prosper have also had success this week, announcing solid performances once again, growing to a 35% market share.

Fortune had an interesting piece looking at the impressive growth of peer to peer lending in China.

Ratesetter, one of the UK’s dominant peer to peer lending platforms, is now the first platform in the world to receive a risk rating from a research company, giving the company a low risk score which is expected to boost trust in the platform. You can read more about the scoring here.