Summary of a post.
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.
- Summary of a post.
- Summary of a post.
- Summary of a post.
In line with our risk management framework, today we published our Q4 2019 performance update.
As a platform, we take great pride in all that we've achieved since opening our doors for business nearly six years ago. We’ve
Featured
Wednesday’s Budget speech, coupled with the cut to Bank of England rates, represented a decisive response to the coronavirus. Here we analyse the impact it will have on mitigating disruption from Covid-19, along with the long-term implications of this significant fiscal stimulus.
Rumblings from the Treasury ahead of next week's Budget suggest tax grabs will be needed to fund increased spending, and it appears UK enterprise could be in the firing line. Here we articulate why targeting entrepreneurs and small business is ill advised.
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.
Most popular
The 2019-20 ISA season has been a damp squib, with banks disinterested in attracting savers’ cash, rates cut, and the stock market in freefall. However, the emergence of the IFISA means alternatives beckon for those seeking a stable middle ground in terms of risk and reward.
In a decade of slow recovery, the rapid rise in asset prices has been the standout. But how sustainable has price growth been, and could we be in the midst of a bubble?
- Summary of a post.
Most people consider income tax to be a given, but in the UK it is barely two centuries old. In this article, we look at how this tax has developed over the years, and also why it is set to remain at the core of our tax system for many decades to come.
Open banking celebrated its second birthday last month, but has the ‘revolution for financial services’ that was promised actually come to pass? In this article, we look at the progress the initiative has made so far, and what the future holds in the face of high levels of scepticism.
On the face of it, a 'broken' energy market needed fixing, and the price caps introduced in early 2019 were heralded as the solution. But, one year later, have they actually helped consumers save?
Recent
The Lending Works Shield does not give you a right to a payment so you may not receive a pay-out even if you suffer loss. The Lending Works Trustee has absolute discretion as to the amount that may be paid, including making no payment at all. Therefore, investors should not rely on possible pay-outs from the Lending Works Shield when considering whether or how much to invest. For more information click here.