Collaboration between high-street lenders and P2P platforms
Following speculation that Santander UK is looking to break into the peer-to-peer (P2P) market through a partnership with Funding Circle, please see below for comment from Richard Carter, chief executive of Nostrum Group.
“A potential partnership between Santander UK and Funding Circle is good news for the industry and shows how collaboration between traditional high-street lenders and P2P platforms could boost lending to businesses of all size.
Previously, traditional credit providers have not considered alternative lending as a form of competition and adopted an ‘us’ and ‘them’ approach to the sector. However, P2P platforms are accelerating at a rapid pace and changing the credit industry because of their agility to quickly respond to niches in the market and support new business models. As a result, traditional banks are recognising that P2P lending is starting to break into the mainstream and operate in the same space as other finance initiatives, such as the Funding for Lending Scheme, which provides new channels of funding for SMEs.
Moving forwards, it is those banks that are forward-thinking and want to remain competitive that will be the first ones to recognise the transition that is occurring and identify new opportunities to use P2P platforms as a tool for consolidating their share of the lending market.”