P2P platforms bypass the banks by linking savers looking for a better return with individuals or small businesses looking for loans. It was granted a full UK banking licence in June 2020 and now offers products such as credit cards, personal loans, fixed-rate savings accounts and car finance. Linked to this, the changing regulation in the sector has made it challenging to grow and remain commercially viable.”For some investors, Zopa has been a key part of their portfolio. RateSetter, formerly the UK’s biggest P2P site, shut down the investment side of its business in April, while the other former big player, Funding Circle, now concentrates on small business loans. One of the better-known players is Lending Works, which was this week saying people could earn projected returns of up to 4.5%.

Source: The Guardian December 12, 2021 01:04 UTC