Leading marketplace lenders such as Zopa, Funding Circle, RateSetter and Lending Club are now inspiring a second generation, seeking to fine-tune the business model of lending outside the traditional banking system. Landbay, a UK-based P2P lender, was founded in 2013 to focus on loans secured against rental properties. The platform promises investors compound fixed returns of 4.5% on a three-year deal or 3.35% above Libor on a floating-rate product, which CEO John Goodall agues are good rates for relatively low risk (compared to some other P2P platforms). But the company has been hit by regulatory issues and is now being investigated by Britain’s Financial Conduct Authority (FCA) over its lending practices.
Landbay, a UK-based P2P lender, was founded in 2013 to focus on loans secured against rental properties. The platform promises investors compound fixed returns of 4.5% on a three-year deal or 3.35% above Libor on a floating-rate product, which CEO John Goodall agues are good rates for relatively low risk (compared to some other P2P platforms). But the company has been hit by regulatory issues and is now being investigated by Britain’s Financial Conduct Authority (FCA) over its lending practices.