Peer to peer

Happy 10th birthday P2P lending!

For some, today may have been just another blue Monday. However, today also marked the 10th birthday of the peer-to-peer lending industry, and here at Lending Works we’re proud to acknowledge this landmark occasion.

The platform has flown under the radar for many years, and even today is considered something of an unknown quantity in many quarters. However, encouraging signs have been in abundance in the last 18 months, with a recent survey by Nesta revealing that the market doubled in value to just under £1.8 billion in 2014.

A further boost came from the news that P2P loans are set to be included within Individual Savings Accounts (ISAs) in early 2016. What remains to be seen is whether they will be included within the existing Stocks and Shares ISA, or if a separate wrapper will be created that is tailored to P2P and crowdfunding.

Either way, estimates in the wake of the revelation suggest that the industry could grow from £2billion to £45 billion in the next few years as a result. In addition, the incoming pension reforms will free up plenty of capital for pensioners in years to come, and the appeal of P2P lending as a halfway house in terms of risk and reward between a savings account and an investment in stocks and shares will surely make it an attractive option.

It’s an exciting time for Lending Works, and our sector as a whole, and as we find ourselves on the cusp of potentially spectacular growth, we’re celebrating a special day in our history: A decade of P2P lending, and a decade of improving the financial landscape.

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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.