Lending Review

By Sukhwinder Shoker on Tuesday 3 November 2015

Alternative Lending

Top 5 UK Platorms by Market Share

Rank Platform Last 3 Month Market Share Month to Date Volume Cumulative Origination
1 Zopa 23.26% £54.1m £1135.4m
2 Funding Circle 20.68% £46.m £890.2m
3 RateSetter 19.36% £51.2m £863.1m
4 Market Invoice 12.76% £40.3m £549.5m
5 LendInvest 8.34% £3.m £423.8m

Source: www.altfidata.com

Market invoice has smashed through their previous record month of invoices traded. The record had been established earlier this year in July with £26.5m of financing provided to SMEs, however, the platform transacted £40.3m in October. The opportunity for peer to peer invoice discounting is enormous. According to research undertaken by Touch Financial, a UK based financial intermediary, invoice discounting is the most dominant form of invoice financing with 87% of advances being through invoice discounting, estimated at £187bn. Further research from the Asset Based Finance Association has also indicated UK businesses adopting invoice financing faster than any other EU country. Such a trend is encouraging for the UK as the country aims to secure its prominence on the global Fintech stage. In keeping with the theme of SME financing, Funding Circle’s October volume falls roughly in line with the platform’s three month average of volume origination prior to the spike in September of £53.6m.   

Moving onto the realm of consumer finance, RateSetter also enjoyed a record month of loan originations (£51.2m) and this is likely to be a direct upshot of the platform’s turnabout decision with respect to the onboarding of institutional capital. Zopa narrowly missed a potential record October with a shortfall of £4.2m in lending volume, nevertheless, a strong performance from the influential UK marketplace lender. 

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