Peer-to-peer lending businesses are bringing much-needed new competition and choice to the banking market in the UK providing loans to creditworthy individuals and businesses
Through Peer-to-Peer lending platforms, businesses and consumers can ‘rely on each other‘ for lending and borrowing services, providing savers attractive rates to boost their savings and lenders competitive rates to obtain finance.
The Peer-to-Peer Finance Association is a UK trade body set up primarily to ensure this innovative and fast growing sector maintains high standards of protection for both consumer and business customers.
The goals of P2P Finance Association are:
- To promote Peer-to-Peer finance in the UK to policymakers, public and the business community.
- To produce best practice and robust operating principles for Peer-to-Peer lending platforms to adhere to for the benefit of both consumers and the industry.
Peer-to-peer lenders have been pressing for regulation for some time and believe it is important that all firms entering this important new market behave responsibly, treat their customers fairly and manage their risks.
Peer-to-Peer Finance will be regulated by the Financial Conduct Authority (FCA) in April 2014.