Since the Financial Conduct 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regulation of the consumer credit industry, around 25% of applications from would-be peer-to-peer lenders have been withdrawn.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 increased regulatory requirements for new entrants in the sector, and it would seem that many cannot meet these demands. 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. 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 market at risk. In a recent interview with Reuters, one UK P2P lender, who asked not to be named, said he was “very concerned” about the future of his business.
Since the Financial Conduct 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regulation of the consumer credit industry, around 25% of applications from would-be peer-to-peer lenders have been withdrawn.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 increased regulatory requirements for new entrants in the sector, and it would seem that many cannot 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 market at risk. In a recent interview with Reuters, one UK P2P lender, who asked not to be named, said he was “very concerned” about the future of his business.