P2P lender’s growth due to consumer ‘rebellion’
Peer-to-peer lender RateSetter has attributed its recent rapid growth to consumers actively rebelling against the big banks.
The company has just passed the milestones of 10,000 investors and $250million in loans and says it is thanks to the Royal Commission’s scrutiny of the four major lenders.
Research amongst RateSetter’s investor base has found that long-term customers of the big four, particularly amongst generation X, are diverting millions of dollars away from their savings accounts and term deposits into longer term P2P investing.
The amount invested by these investors has increased by 14% over the last 12 months, with average investment now sitting at close to $40,000.
CEO of RateSetter Australia, Daniel Foggo, said, “The Royal Commission has shone a spotlight on our big banks and encouraged both borrowers and investors to look at alternatives. Our rapid growth is proof that people, looking to earn investment returns or borrow money, are realising P2P lending can help put more money in their pocket.
“Our five-year market is proving extremely popular with all segments of our customer base but particularly mums and dads. Strong returns provide this group with a great alternative to bank offers including savings accounts and term deposits.”
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