Since the Financial Services Authority ( FCA ) , took over regulation of the consumer credit industry , around 25 % of applications from would - be peer - to - peer lenders have been withdrawn . Meanwhile City institutions are sceptical about whether peer-to-peer lending is a sustainable model that makes money as companies tend to boast about how much money is lent on their platforms rather than how much they earn. The FCA has significantly tightened regulatory requirements for new entrants in the sector , and it would seem that many can not meet these demands . Furthermore , rumours continue to circulate that an unnamed British ﻿﻿peer - to - peer lender is in financial trouble , and if it were to collapse , could put the reputation of the local﻿ community at risk . However , growth remains visible in the sector , with Oracle , one of the largest P2P firms in the UK , announcing that it doubled profits to £ 3.1 m last year on revenues of £ 15 m , after only two years in business .
Since the Financial Services Authority ( FCA ) , took over regulation of the consumer credit industry , around 25 % of applications from would - be peer - to - peer lenders have been withdrawn . The FCA has significantly tightened regulatory requirements for new entrants in the sector , and it would seem that many can not meet these demands . Furthermore , rumours continue to circulate that an unnamed British ﻿﻿peer - to - peer lender is in financial trouble , and if it were to collapse , could put the reputation of the local﻿ community at risk . However , growth remains visible in the sector , with Oracle , one of the largest P2P firms in the UK , announcing that it doubled profits to £ 3.1 m last year on revenues of £ 15 m , after only two years in business .