The idea of typing in a few personal details to receive a loan in a matter of days used to be the dreams of financial lunatics. However, all praise to those lunatics because the UK is celebrating its 10-year anniversary with Peer-to-Peer (P2P) lending this year. Over the past decade we have seen the introduction of new platforms left, right and centre combined with an incredible growth that has really started to turn heads. One thing is for sure, P2P is here to stay and we couldn’t be happier with that fact.
The idea of typing in a few personal details to receive a loan in a matter of days used to be the dreams of financial lunatics. However, all praise to those lunatics because the UK is celebrating its 10-year anniversary with Peer-to-Peer (P2P) this year. Over the past decade we have seen the introduction of new platforms left, right and centre combined with an incredible growth that has really started to turn heads. One thing is for sure, P2P is here to stay and we couldn’t be happier with that fact.
Zopa was the first P2P platform created in the world. It sent the first shockwaves bank-ways when they started to offer loans in February 2005. They also recently broke the £1 billion barrier in loans (and beat the US in forming the first platform) – for that we P2P salute you comrades. Funding Circle followed 5 years later offering small businesses loans using investor funds with Ratesetter also joining the P2P world that same year. Then came Lending Works, Assetz Capital, Market Invoice, Transferwise, QuidCycle, Unbolted – and that’s just in the UK. The newly defined FinTech world is absolutely booming! The amount of money lent through P2P platforms doubled to £1.8 billion in 2014 and is predicted to sky-rocket to £45 billion with the inclusion of the 2016 ISA. Global FinTech investment from venture capitalists topped this figure as it grew a monstrous 201% in 2014 to £8.04 billion. Alternative Finance has even managed to find its own honorary seat in the Houses of Parliament with the formation of the All-Party Parliamentary on FinTech – a cross-party membership whose responsibility is to raise awareness of the growing FinTech community.
The future is looking very bright but there are still challenges for the members of this expanding industry. It is becoming increasingly essential to make yourself stand out from the crowd as further entrants come into the market. Innovation and specialisation is what is required to keep a seat on this fast-paced financial band-wagon. QuidCycle is an up and coming financial services company that utilise a P2P platform to champion this movement with their focus on debt consolidation.
Frank Mukahanana, an investment banker turned financial advisor, established the company in 2013 when he decided that UK families needed more help managing their finances. This is where QuidCycle was born. QuidCycle provides an inventive and sustainable option for those in debt to consolidate their finances into one, manageable loan using funds deposited by UK residents. Loans are offered not only at low interest rates but with education and support to get out and stay out of debt. The cherry on the borrower’s cake comes in the form of cash incentives when making repayments on time - this is one way to help its borrowers control their finances! However, it’s investors are also well looked after. As an investor you are welcomed with fantastic return rates along with the option to let QuidCycle do the hard work or unlock your inner investor and manage your own investments. It is a win-win in its purest form! Of course there are risks when investing P2P platforms but your money couldn’t be safer with the FCA-regulated QuidCycle and their Provision Fund which covers defaulted borrowers by up to 1.5% of the loan. However, to date, not one penny of a investor’s investment has been lost!
This P2P specialisation allows QuidCycle to establish itself as the number one platform for anyone looking to refinance or invest. QuidCycle is not just a financial service utlising an innovative P2P platform, it is a financial service that actively helps its customers improve their life. I am sure I am not the only one sitting here wondering how it took so long to create competition to the unethical loan processes of the banks and Payday companies. However, it is wonderful to see that QuidCycle have taken a real step forward in returning interest back to where it should be both in terms of the consumer and rates.
P2P as a mode of alternative finance doesn’t seem quite right anymore, it is a primary mode of finance. It is morphing the financial world into a community where information is transparent and faith is being restored. P2P is far from reaching its potential, it is a maturing adolescent with ambitious dreams, and I think we are all excited to see what positive effect it has on our future lives.