With the retail sector enduring its fair share of challenges, companies are looking at new ways to attract customers, and drive conversion. In an overcrowded, dog-eat-dog marketplace, with behemoths such as Amazon flexing their muscle, it’s easier said than done.
Brexit and Lending Works
On 24th June, Britain awoke to the news that its electorate had voted in favour of leaving the European Union
, triggering a chain of events which included the resignation of our prime minister, the FTSE 100 and FTSE 250 seeing hundreds of billions of pounds in value being wiped off, and a dramatic slump of the sterling to record 30-year lows.
All of the above took place within mere hours of the result being announced, and there will continue to be trepidation and uncertainty within financial and trading markets for the foreseeable future as the complications of where to from here for Britain is determined.
So, where does this leave Lending Works?
Our personal preference would have been for a vote to remain, but we have carefully considered both potential outcomes in recent months and it is our firm belief that our platform is not greatly exposed to many of the potential negative implications of the Brexit vote, and we do not anticipate any significant knock-on effects in the near future.
Our business model is robust, while peer-to-peer lending as a whole is characterised by the steady and predictable returns it has consistently delivered over the last decade. In fact, from the perspective of lenders, we are optimistic that this result will even present an opportunity for our industry, given that markets are expected to be highly volatile while the process of Brexit unfolds, and peer-to-peer lending may thus present an attractive alternative for potential investors looking for a strong yield with less volatility.
We of course acknowledge that there will be external factors which are not yet predictable or controllable, and may yet have an impact on P2P platforms. However, as a nimble, agile and, above all, healthy company, we have no doubt that we will be able to deal with any issues which may arise decisively and positively over the coming months.
A positive future
It is too early to speculate about the precise effects this will have on rates, or anything else relating to financial services as a whole, but our senior management team and board of directors will be keeping a close eye on the situation so that we are well placed to respond accordingly. Moreover, peer-to-peer lending as an industry has already endured the stress test of a recession, and passed with flying colours. So even if the worst were to eventuate, we are confident that our rigorous processes will continue to ensure that savvy lenders and prime borrowers will continue to benefit from a superior deal.
Naturally, we will provide updates as and when they are appropriate. But in the meantime, all our customers can rest assured that it’s business as usual and everything we do will be with customers’ interests at the top of the totem pole – as has been the case since day one.
If you have any further questions relating to the EU referendum result in this context, or any other queries for that matter, please do feel free to get in touch with us.
Related articles:
Our website offers information about saving, investing, tax and other financial matters, but not personal advice. If you're not sure whether peer-to-peer lending is right for you, please seek independent financial advice, and if you decide to invest with Lending Works, please read our Key Lender Information PDF first.
As with all investments, your capital is at risk.
On 4 June 2019, the Financial Conduct Authority (FCA) released its new regulatory framework for peer-to-peer lending (P2P); a Policy Statement known as PS19/14. As you might imagine, it's a document which, following a three-month consultation, is a hefty read of no fewer than 102 pages.
When it comes to investing, there are numerous questions that need to be asked, and lots of things which need to be properly understood before committing your hard-earned money
For all the resilience the UK economy has shown, there is no doubt that this year's ISA season is set against a backdrop of uncertainty. Whatever the pros and cons, Brexit, and a lack of clarity on what our future economic relationship with the EU will look like, has left us at a crossroads.
The housing crisis in the UK is widely mentioned in the media, but the extent of it is often underestimated.
Featured
In a difficult climate, customer acquisition and lead generation present stern challenges for UK retailers, and a great deal of marketing spend invariably gets directed towards getting feet through the door.
There is a variety of literature and research illustrating the importance of building brand loyalty, albeit with some degree of variance.
Over the last decade, there can be little dispute that the reputation of mainstream banks – and particularly the so-called ‘Big Four’ (HSBC, Barclays, Lloyds and RBS) – is at its lowest ebb.
The idea of peer-to-peer (P2P) lending is a simple one; you lend money to those who wish to borrow, with a view to receiving a great return for doing so.
The peer-to-peer (P2P) lending industry is now regulated by the Financial Conduct Authority (FCA). The regulatory framework has been designed to protect customers and promote effective competition.
When you earn interest from a regular bank savings account, for example, the bank automatically deducts basic rate tax (currently 20%) before paying your interest. With interest earned from peer-to-peer lending, tax is not deducted automatically so lenders will need to declare their income to HMRC.
Most popular
The financial crisis is a bitter memory of what can go wrong when regulators lose control of markets. It seems hard to fathom now, but a little over a decade ago, buyers could acquire mortgages to the tune of 125 per cent of the home’s value (the Northern Rock Together mortgage being one of the most infamous), with only the most lax affordability checks standing in their way.
Numerous theories have emerged as to why the UK has endured such a severe productivity problem over the last decade. Growth in productivity of just 2 per cent during that period would typically have been accomplished within a single year prior to the financial crisis, and thus the 'productivity puzzle' continues to confound economists
In the aftermath of the financial crisis back in 2008/09, the Bank of England (BoE) had considerable headroom in terms of monetary policy, and - rightly - it made full use of it.
While it has held up better than expected over the past year or two, the UK economy and its macroeconomic indicators make for anaemic reading.
It’s no exaggeration to say that the global financial system as a whole is predicated on the ability to buy something now, and pay for it later. Barely anyone would be able to make a substantial purchase such as a house without an instrument like a mortgage.
With political parties jostling for position amid a series of Elections, and the ongoing spectre of a snap General Election looming large, the Labour Party put forward a policy last week which has proved to be a talking point: increasing the minimum wage to £10 per hour, and extending this to workers under the age of 18.
