Lending Review

By Sukhwinder Shoker on Friday 29 January 2016

Alternative Lending


The Liberum AltFi Volume Index (UK) has climbed to in £5.7bn in cumulative lending. The annualized growth for the combined loan volume origination of the top 5 UK platforms is 100%. This is in line with the annual growth of the wider peer to peer lending sector.

RateSetter has become the third platform in the UK to surpass £1bn in cumulative origination lending and, according to the Liberum AltFi Volume Index (UK) has become the fastest UK platform to hit the mark. Monthly volume origination has been growing steadily since the platform’s inception and this month RateSetter is on course to go beyond the record £53.5m it facilitated in December 2015, underlining a strong start to 2016.

RateSetter have also added fields earlier this month to their publicly available loanbook providing greater depth and transparency for consumers. Some highlights of RateSetter’s loanbook exploration include:

  • 1,949 days to achieve £1bn in cumulative lending, half the time Zopa took.
  • In the last 20 months, weighted gross interest rates have fluctuated between 6.8%-8.5%.
  • 30% of monthly origination is attributed in loans of less than 13 months.
  • Diversification through 10 loan purpose categories. 20% of quarterly lending may be attributed to partnerships that were engaged by RateSetter with companies such as GiffGaff and Commuter Club.

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